SECTION 70 - INFORMATION

First of all: WHAT IS SECTION 70?

SECTION 70 is that part of ancient social security legislation (currently under review) which allows the government to means test NZ Superannuation and capture any pension paid to NZ pensioners by a foreign state.

See: http://www.nzpensionprotest.com/Home/the-law for full details.

The declared reason for this is to ensure fairness for all.

The actual reason has little to do with fairness and more to do with the NZ government and MSD scratching around to get overseas governments to support our own state pension system.

•   Nothing wrong with that – superficially – but watch the sleight of hand!

Nobody (except perhaps politicians and civil servants) wants to ‘double dip’. Except that section 70 captures not only overseas state pensions but also funds established by employer/employee contributions. (Think ‘Kiwi saver’ similarities here).

Section 70 means that NZ superannuation payments are, in fact, means tested. It also means that pensioners in New Zealand are being robbed of their own savings.

Before xenophobia raises its ugly head let’s just state that this robbery disadvantages not only immigrants but lifelong residents of New Zealand as well as a whole variety of other nationalities.