New Zealand Superannuation and Retirement Income Act 2001

Annual adjustment of New Zealand superannuation

15 Annual adjustment of standard rates of New Zealand superannuation

(1)

In this section,—

CPI means the consumers price index-all groups published by Statistics New Zealand

standard tax means the amount of tax reckoned on a weekly basis that would be deductible in accordance with the tax code “M” stated in section 24B of the Tax Administration Act 1994.

(2)

Subject to subsection (3), the rates of New Zealand superannuation stated in paragraphs (a), (b), and (c) of clause 1 and paragraph (b) of clause 2 of Schedule 1 must be adjusted, by Order in Council, as at 1 April each year so that in each case the new rate (after the deduction of standard tax) is the rate at that date (after the deduction of standard tax and before the adjustment under this section is made) adjusted by any percentage movement upwards in the CPI between the CPI for the quarter ended with 31 December one year before the immediately preceding 31 December and the CPI for the quarter ended with the immediately preceding 31 December.

(2A)

The adjustments (by any percentage movement upwards in the CPI) required under subsection (2) as at 1 April in any year from 2011 to 2021 (inclusive) must, despite subsections (1) and (2), be calculated,—

(a)

if, and insofar as, they relate to movements during quarters that end before 29 April 2010, using index numbers for those quarters of the consumers price index-all groups published by Statistics New Zealand; and

(b)

if, and insofar as, they relate to movements during quarters that end after 28 April 2010, using index numbers for those quarters of the consumers price index-all groups excluding cigarettes and other tobacco products published by Statistics New Zealand.

(3)

Every Order in Council made under subsection (2) must adjust the rates of New Zealand superannuation, subject to subsection (4),—

(a)

so that the weekly amounts referred to in section 16 are set in accordance with that section; and

(b)

so that the rate of New Zealand superannuation stated in paragraph (b) of clause 2 of Schedule 1 preserves its proportional relationship (after the deduction of standard tax) to the rates stated in paragraphs (a), (b), and (c) of clause 1 of that schedule.

(4)

An adjustment under this section must not reduce the weekly amounts payable under this section.

(5)

Every Order in Council made under subsection (2) has the force of law as if it was enacted by this Act.

(6)

Every Order in Council made under subsection (2) comes into force or is considered to come into force on 1 April of the calendar year in which it is made, and applies to New Zealand superannuation payable on and after that date.

Compare: 1990 No 26 s 13A(1), (2), (3)(d), (3A), (4), (5)

Section 15(1) CPI: amended (with effect on 20 May 2010), on 28 May 2010, by section 3(1) of the New Zealand Superannuation and Retirement Income Amendment Act 2010 (2010 No 32).

Section 15(1) earner premium: repealed, on 11 May 2005, by section 63(2) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).

Section 15(1) standard tax: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 15(2A): inserted (with effect on 20 May 2010), on 28 May 2010, by section 3(2) of the New Zealand Superannuation and Retirement Income Amendment Act 2010 (2010 No 32).

Section 15(2A): amended, on 31 May 2016, by section 9 of the Customs and Excise (Tobacco Products—Budget Measures) Amendment Act 2016 (2016 No 25).

Section 15(2A): amended, on 24 October 2012, by section 3 of the New Zealand Superannuation and Retirement Income (Indexation—Budget Measures) Amendment Act 2012 (2012 No 81).

Section 15(5): replaced, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).