Social Security (Overseas Pension Deduction) Amendment Regulations 2017

2017/227

Coat of Arms of New Zealand

Social Security (Overseas Pension Deduction) Amendment Regulations 2017

Patsy Reddy, Governor-General

Order in Council

At Wellington this 14th day of August 2017

Present:
Her Excellency the Governor-General in Council

These regulations are made under section 132C of the Social Security Act 1964 on the advice and with the consent of the Executive Council.

Regulations

1 Title

These regulations are the Social Security (Overseas Pension Deduction) Amendment Regulations 2017.

2 Commencement

These regulations come into force on 16 September 2017.

3 Principal regulations

These regulations amend the Social Security (Overseas Pension Deduction) Regulations 2013 (the principal regulations).

4 Regulation 3 amended (Interpretation)

(1)

In regulation 3, definition of figure, replace “instalment period” with “payment month”.

(2)

In regulation 3, revoke the definition of instalment period.

(3)

In regulation 3, insert in its appropriate alphabetical order:

payment month, for an instalment of a benefit, means the calendar month in which the instalment is payable (under section 82 of the Act)

5 New regulation 3A inserted (Transitional, savings, and related provisions)

After regulation 3, insert:

3A Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

6 Regulation 4 amended (Reduction formula)

Replace regulation 4(1) with:

(1)

If section 70(1) of the Act requires a benefit to be reduced,—

(a)

each instalment of the benefit payable in the payment month immediately following the end of a calculation period must be reduced; and

(b)

the amount per week by which each instalment is reduced must be calculated according to the following formula:

(a × b) − c

where—

a

is the rate per week of the overseas pension, in the currency of the country paying the pension, calculated by reference to the amount of that pension payable to the overseas pensioner during the calculation period; and

b

is the calculation rate determined under regulation 5; and

c

is the bank fee determined under regulation 6.

(1A)

If the benefit is payable by an instalment of 2 or more weeks’ benefit, the amount by which each instalment is reduced is the amount calculated according to the formula in subclause (1)(b) multiplied by the appropriate number of weeks.

7 Regulation 5 amended (Calculation rate)

(1)

In regulation 5(2)(a), delete “(during the calculation period immediately before the instalment period for which the calculation is made)”.

(2)

In regulation 5(2)(b), delete “during a calculation period”.

(3)

In regulation 5(2)(c), delete “during a calculation period”.

(4)

After regulation 5(2), insert:

(3)

For the purpose of subclause (2), a currency exchange rate must be notified to the chief executive or publicly before the notification deadline that is immediately before the payment month for which the calculation is made.

(4)

For the purpose of subclause (3), notification deadline means—

(a)

the close of the fifth day after the end of the calculation period; or

(b)

if that fifth day is not a working day, the close of the next working day.

8 New Schedule 1 inserted

Insert the Schedule 1 set out in the Schedule of these regulations as the first schedule to appear after the last regulation of the principal regulations.

Schedule New Schedule 1 inserted

r 8

Schedule 1 Transitional, savings, and related provisions

r 3A

Part 1 Provisions relating to Social Security (Overseas Pension Deduction) Amendment Regulations 2017

The Social Security (Overseas Pension Deduction) Amendment Regulations 2017 apply to—

(a)

a calculation period that begins on the commencement of 16 September 2017 and subsequent calculation periods; and

(b)

an instalment of a benefit that is payable on or after 1 November 2017.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 16 September 2017, are made under the Social Security Act 1964. They amend the Social Security (Overseas Pension Deduction) Regulations 2013. The amendments ensure that the regulations reflect current practice relating to exchange rates and the formula for calculating a deduction in the New Zealand benefit because of an overseas pension.

The amendments—

  • ensure that the calculated exchange rates and the reduction formula apply to a reduction in a benefit instalment that is payable in the calendar month (the payment month) (rather than the instalment period) immediately following the end of a calculation period:

  • provide for a weekly calculation of the reduction of the benefit instalment, which is then multiplied by the appropriate number of weeks for benefit instalments that are greater than 1 week:

  • amend the reduction formula by applying the rate per week of the overseas pension calculated by reference to the amount of the overseas pension that is payable during the calculation period immediately preceding the payment month (rather than the amount of overseas pension payable in the instalment period):

  • expand the time within which a country (or a bank on its behalf) must notify an exchange rate under regulation 5(2). Currently, the exchange rate must be notified during the calculation period, which ends with the close of the 15th day of the month. The amendments extend the notification deadline to the close of the 20th day of the month (or the close of the next working day).

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 17 August 2017.

These regulations are administered by the Ministry of Social Development.