This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 May 2008, are made under the Social Security Act 1964 (the Act). They declare certain items of income or cash assets not to be a person's income or cash assets for the purposes of the Act. The items are related to certain superannuation schemes, namely KiwiSaver schemes, and non-KiwiSaver schemes that are registered under the Superannuation Schemes Act 1989 and the provisions of which include a qualifying lock-in clause. The exemptions cease to apply once a qualifying lock-in clause no longer prevents withdrawals (other than those under a standard withdrawals clause) from the scheme. (A qualifying lock-in clause is treated as no longer preventing withdrawals of that kind if the person has exercised a right under the scheme's provisions to elect to defer receipt of any benefit that he or she is eligible to receive under the scheme.)
The exempted items of a person's income are the following paid or made on or after 1 May 2008 in respect of the person as a member of a KiwiSaver scheme or specified non-KiwiSaver scheme:
The exempted item of a person's cash assets is the net value of the person's member's interest, on or after 1 May 2008, in a specified non-KiwiSaver scheme. (Cash assets, as used in specified provisions relating to the accommodation supplement, includes “money withdrawn from a KiwiSaver scheme registered under the KiwiSaver Act 2006”, but “does not include any contributions to, or any member's interest in, any KiwiSaver scheme that is registered under the KiwiSaver Act 2006”: paragraphs (a)(iia) and (ab) of the definition of cash assets in section 61E of the Act.)
A member's interest, for a member of a specified non-KiwiSaver scheme, means the total of the following:
the member's contributions; and
any employer contributions (vested or unvested) in respect of the member; and
any fee subsidies paid in respect of the member; and
any Crown contribution paid in respect of the member.
The net value of a member's interest is its value once any other appropriate debits and credits have been made to account for things like fees, permitted withdrawals or permitted proposed withdrawals, and positive and negative returns. A permitted withdrawal or permitted proposed withdrawal is a withdrawal that is, or a proposed withdrawal that if it were provided would be, permitted under the provisions of the relevant specified non-KiwiSaver scheme.
A withdrawal from a KiwiSaver scheme or non-KiwiSaver scheme includes any benefit provided from, and debited against the member's interest in, the scheme, but does not include a transfer (with or without the member's consent) from the scheme to another KiwiSaver scheme or non-KiwiSaver scheme.
That item, or a similar item, of cash assets is also––
an asset exempt from means assessment under Part 4 of the Act, because of the related exemptions in clause 4 of Part 2 of Schedule 27 of the Act and regulation 10(1)(i) of the Social Security (Long-term Residential Care) Regulations 2005; and
excluded from cash assets used in determining eligibility for temporary additional support, because of the related exclusion in regulations 8(3)(h) and 8B of the Social Security (Temporary Additional Support) Regulations 2005.