(1) Every person is entitled to receive New Zealand superannuation who attains the age of 65 years.

(2) However, a person is not entitled to receive New Zealand superannuation in respect of any period for which he or she has made an election under any of clause 52 or clause 68 or clause 72 of Schedule 1 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 to be entitled to weekly compensation under that Act rather than to New Zealand superannuation.

(3) Subsection (1) applies subject to the provisions of this Part and of the Social Security Act 1964.

No person is entitled to New Zealand superannuation unless the person—

• (a) is ordinarily resident in New Zealand on the date of application for New Zealand superannuation; and

• (b) has been both resident and present in New Zealand for a period or periods aggregating not less than 10 years since attaining the age of 20 years; and

• (c) has also been both resident and present in New Zealand for a period or periods aggregating not less than 5 years since attaining the age of 50 years.

(1) In determining the period an applicant has been present in New Zealand, no account is taken of,—

• (a) in the case of any applicant, any period of absence for the purpose of obtaining any special medical or surgical treatment or vocational training if the chief executive is satisfied that there were good and sufficient reasons for the person leaving New Zealand to obtain that special treatment or training:

• (b) in the case of a mariner, any period of absence while serving on board any ship registered or owned in New Zealand and engaged in trading to and from New Zealand:

• (c) in the case of any applicant, any period of absence while serving in any capacity as a member of any naval, military, or air force of any Commonwealth country or serving in connection with any war in which New Zealand forces were involved as a member of any organisation attached to any of those forces:

• (d) in the case of any applicant, any period of absence while serving in any capacity as an accredited volunteer appointed by Volunteer Service Abroad Incorporated.

(2) Subsection (1) applies only if the chief executive is satisfied that during the absence of the applicant he or she remained ordinarily resident in New Zealand.

(1) In determining the period an applicant has been present in New Zealand, no account is taken of any period of absence while engaged in missionary work outside New Zealand as a member of, or on behalf of, any religious body or, as the case may be, during any period that the applicant was absent from New Zealand with his or her spouse or partner while that spouse or partner was engaged in that missionary work.

(2) Subsection (1) applies only if the chief executive is satisfied that the applicant was either born in New Zealand or was ordinarily resident in New Zealand immediately before leaving New Zealand to engage in the missionary work or, as the case may be, to accompany or join his or her spouse or partner.

(3) Unless otherwise expressly provided in the agreement, the provisions of subsection (1) are not modified by the provisions of any agreement entered into by the Government of New Zealand with the government of any other country, whether before or after the commencement of this section, providing for reciprocity in social security benefits between their respective countries or the provisions of any Act or Order in Council giving effect to the agreement.

(4) In this section, missionary work includes the advancement of religion or education and the maintenance, care, or relief, of orphans, or the aged, infirm, sick, or needy.

(1) New Zealand superannuation commences on the date on which the applicant becomes entitled to receive it or the date on which the application for it is received by the department, whichever is the later date.

(2) This section is subject to section 80AA of the Social Security Act 1964.

(1) The rate of New Zealand superannuation payable to any person is the appropriate rate stated in clause 1 or clause 2 of Schedule 1.

(2) A person who is married or in a civil union or in a de facto relationship and whose spouse or partner is not entitled to receive New Zealand superannuation may elect to receive the appropriate rate stated in either clause 1 or clause 2 of that schedule.

(3) However, an election to receive New Zealand superannuation under clause 2 of Schedule 1 does not take effect until the employment has ceased in a case where—

• (a) that person’s spouse or partner is or was in employment under a contract of service; and

• (b) the combined income of the person and his or her spouse or partner, during that employment, is or was enough to prevent receipt of New Zealand superannuation under clause 2 of that schedule.

(4) A person who has made an election under subsection (2) may at any time change that election.

(1) Any single person who receives New Zealand superannuation and who is living alone in his or her principal place of residence is entitled to receive a living alone payment.

(2) The living alone payment is included in the appropriate rate stated in clause 1(a) of Schedule 1.

(3) A person is considered to be living alone only if he or she—

• (a) occupies a principal place of residence that is referred to in subsection (4); and

• (b) does not share that residence with any person of or over the age of 18 years other than—

  • (i) a dependent child of or over that age; or

  • (ii) a temporary visitor who stays less than 13 weeks in any period of 26 weeks.

(4) The places referred to in this subsection are—

• (a) a house or flat; or

• (b) a boat or craft moored within—

  • (i) the territorial sea of New Zealand or any internal waters of New Zealand; or

  • (ii) any waters within New Zealand, being any lake, estuary, lagoon, river, stream, creek, or other waters,—

  whether or not it is from time to time travelling within that sea or any of those waters; or

• (c) a hotel room, motel unit, a room in a licensed boardinghouse, or a unit of accommodation in a caravan park.

(5) In this section, territorial sea of New Zealand and internal waters have the same meanings as in the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977.

(1) Every living alone payment commences on the later of—

• (a) the date on which the applicant becomes entitled to receive it; or

• (b) the date on which the application is received.

(2) However, if an application for a living alone payment is made as a result of the death of the spouse or partner of the applicant, the living alone payment commences on—

• (a) the date on which the applicant becomes entitled to receive it if the application is received within 28 days after the date of entitlement; or

• (b) the date on which the application is received if it is received 28 days or more after the date of entitlement.

(3) This section is subject to section 80AA of the Social Security Act 1964.

(1) In this section,—

(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.

(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) Subsections (3) to (6) of section 61H of the Social Security Act 1964 apply to every Order in Council made under subsection (2) as if that Order in Council were made under that section.

(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.

(1) The annual adjustment of New Zealand superannuation under section 15 must ensure that—

• (a) the standard weekly amount of New Zealand superannuation (after the deduction of standard tax) payable to a couple who are married or in a civil union or in a de facto relationship, both of whom are qualified to receive New Zealand superannuation, is not less than 65% or more than 72.5% of the average ordinary time weekly earnings (males and females combined) as determined by the last Quarterly Employment Survey of wages published by the Department of Statistics before 1 March in each year (after the deduction of standard tax and the earner levies payable on those earnings):

• (b) the standard weekly amount of New Zealand superannuation (after the deduction of standard tax) payable to a single person who has been granted a living alone payment is 65% of the weekly amount of New Zealand superannuation (after the deduction of standard tax) payable to a couple who are married or in a civil union, both of whom are qualified to receive New Zealand superannuation:

• (c) the standard weekly amount of New Zealand superannuation (after the deduction of standard tax) payable to a single person who has not been granted a living alone payment is 60% of the weekly amount of New Zealand superannuation (after the deduction of standard tax) payable to a couple who are married or in a civil union, both of whom are qualified to receive New Zealand superannuation.

(2) In this section, earner levies means the levies payable under section 219(1) of the Injury Prevention, Rehabilitation, and Compensation Act 2001.

(1) This section applies to any person who is not in long-term residential care and whose spouse or partner is in long-term residential care in a hospital or rest home, whether or not the spouse or partner is a resident assessed as requiring care (within the meaning of section 136 of the Social Security Act 1964).

(2) Every person to whom this section applies is entitled to receive—

• (a) New Zealand superannuation at the appropriate rate payable to a person who is single, in any case where that person is entitled to receive New Zealand superannuation in his or her own right; or

• (b) New Zealand superannuation at the appropriate rate payable to a person who is single, in any case where—

  • (i) that person is not entitled to New Zealand superannuation in his or her own right; but

  • (ii) his or her spouse or partner is entitled to New Zealand superannuation and was entitled to make and had made an election under section 6(2) or section 11(2) of the Social Welfare (Transitional Provisions) Act 1990 before 1 October 1991; or

• (c) an emergency benefit under section 61 of the Social Security Act 1964 at the appropriate rate of an invalid’s benefit payable to a person who is single or is single with 1 or more dependent children, as the case may be, in any other case.

(3) Any benefit payable to a person to whom this section applies is not subject to abatement in respect of any income of the person that has been included in a means assessment of the person’s spouse under Part 4 of that Act.

However, every person to whom section 17(2)(a) or (b) applies is entitled to receive New Zealand superannuation at the appropriate rate stated in clause 1(a) of Schedule 1 if the person has been granted a living alone payment under section 13.

(1) For the purposes of this section, hospital means a hospital provided by a District Health Board within the meaning of the New Zealand Public Health and Disability Act 2000; and includes a psychiatric security institution within the meaning of the Mental Health (Compulsory Assessment and Treatment) Act 1992.

(2) This section applies to a person who is married or in a civil union or in a de facto relationship and who has no dependent children, and a single person who receives New Zealand superannuation, or who becomes entitled to receive New Zealand superannuation.

(3) The rate of New Zealand superannuation payable to a person who is a patient in a hospital for a period of 13 weeks or less is not affected.

(4) The rate of New Zealand superannuation payable to a person who is a patient in a hospital for more than 13 weeks is, on and after the commencement of the 14th week of hospitalisation, the rate stated in clause 3 of Schedule 1.

(5) Subsection (4) does not apply to a resident assessed as requiring care (as defined in section 136 of the Social Security Act 1964) who is a patient in a hospital and in respect of whom a funder (as defined in that section) is paying some or all of the cost of contracted care services (as defined in that section) under section 141 or section 142 of that Act.

(6) However, the chief executive may, at the chief executive’s discretion,—

• (a) pay to any patient to whom subsection (4) applies a higher rate than the rate stated in clause 3 of Schedule 1 after having regard to the patient’s personal financial circumstances.

• (b) [Repealed]

(7) If, after 13 weeks’ hospitalisation, the New Zealand superannuation of a person who is married or in a civil union or in a de facto relationship is reduced under subsection (4) or subsection (6)(b), and that person’s spouse or partner is either not in hospital or has been in hospital for less than 13 weeks, any New Zealand superannuation payable to or for the spouse or partner must be increased, on the same date as the effective date of that reduction, by an amount equal to the difference between—

• (a) the maximum rate of New Zealand superannuation payable to a single person; and

• (b) the maximum rate of New Zealand superannuation payable to a person who is married or in a civil union or in a de facto relationship and whose spouse or partner is receiving New Zealand superannuation.

(8) In any case where the rate of New Zealand superannuation has been reduced in accordance with this section and the superannuitant in hospital is absent from the hospital for not more than 28 days, the rate of New Zealand superannuation payable on return to hospital must be determined as if that absence has not occurred.

(9) This section does not entitle a single person or a couple who are married or in a civil union or in a de facto relationship to receive a greater amount of New Zealand superannuation, as a result of hospitalisation, than would otherwise have been payable.

(10) This section applies despite anything to the contrary in the Social Security Act 1964 or in the Social Welfare (Transitional Provisions) Act 1990.

(1) This section applies if—

• (a) a person receives New Zealand superannuation; and

• (b) the person’s spouse or partner is either—

  • (i) a patient in a hospital as defined in section 19; or

  • (ii) a resident assessed as requiring care (as defined in section 136 of the Social Security Act 1964) in respect of whom a funder (as defined in that section) is paying some or all of the cost of contracted care services (as defined in that section) under section 141 or section 142 of that Act; and

• (c) that spouse or partner receives a reduced benefit under section 19(4) or (5).

(2) The chief executive must grant a special disability allowance at the rate stated in clause 4 of Schedule 1, for the purpose of defraying expenses arising from the spouse’s or partner’s hospitalisation.

(3) This section applies despite anything in section 69C of the Social Security Act 1964 but subject to section 68A of that Act.

A person is not entitled to New Zealand superannuation while that person is absent from New Zealand except as provided in sections 22 to 35 or in any agreement or convention adopted under section 19 of the Social Welfare (Transitional Provisions) Act 1990.

New Zealand superannuation that would otherwise be payable to a person (other than a person who is receiving New Zealand superannuation overseas under section 26) is payable in respect of the first 26 weeks of any absence from New Zealand if—

• (a) the person’s absence does not exceed 30 weeks; or

• (b) the person’s absence exceeds 30 weeks and the chief executive is satisfied that the absence beyond 30 weeks is due to circumstances beyond that person’s control that he or she could not reasonably have foreseen before departure.

The chief executive may pay New Zealand superannuation to any person who would otherwise be entitled to receive it, but who is absent from New Zealand for any period or periods not exceeding 2 years in total because that person or his or her spouse or partner, dependent child, or sibling is receiving medical treatment overseas for which the Ministry of Health is granting assistance.

(1) The chief executive may pay New Zealand superannuation to any person who—

• (a) is otherwise entitled to receive it; and

• (b) is absent from New Zealand for a period not exceeding 156 weeks; and

• (c) is engaged, while absent from New Zealand, in full-time voluntary and unpaid humanitarian work for a recognised aid agency that—

  • (i) has, as its principal function, the giving of aid and assistance to less advantaged communities in 1 or more other countries; and

  • (ii) has not deprived another person of paid employment to engage the person to do that work on an unpaid basis.

(2) The chief executive of the Ministry of Foreign Affairs and Trade must determine any question that arises as to whether an aid agency fulfils the qualifications set out in subsection (1).

If a person who is absent from New Zealand would have become entitled to New Zealand superannuation during his or her absence but for section 21, the person’s absence is to be regarded as having commenced on the day he or she would have become entitled to New Zealand superannuation.

(1) This subsection—

• (a) applies to a country if it is not a country with whose government New Zealand has a reciprocal agreement or convention, in force under section 19 of the Social Welfare (Transitional Provisions) Act 1990, that relates to New Zealand superannuation; and

• (b) applies to a person if he or she has left New Zealand at a time when he or she was—

  • (i) intending to reside for a period longer than 26 weeks in a country (or any 2 or more countries) to which this subsection applies, but not intending to reside for a period longer than 52 weeks in a specified Pacific country (within the meaning of section 30(1)); or

  • (ii) intending to travel for a period longer than 26 weeks, but not intending to reside in any country other than New Zealand.

(2) A person to whom subsection (1) applies is entitled to be paid New Zealand superannuation at the appropriate rate specified in subsection (6)—

• (a) in the case of a person who has left New Zealand at a time when he or she was intending to reside for a period longer than 26 weeks in a country (or any 2 or more countries) to which subsection (1) applies, but not intending to reside for a period longer than 52 weeks in a specified Pacific country (within the meaning of section 30(1)), until he or she—

  • (i) begins to reside in a country that is not a country to which subsection (1) applies; or

  • (ii) begins to reside in New Zealand again; or

  • (iii) begins to receive New Zealand superannuation otherwise than under this section; and

• (b) in the case of a person who has left New Zealand at a time when he or she was intending to travel for a period longer than 26 weeks, but not intending to reside in any country other than New Zealand, until he or she—

  • (i) begins to reside in a country that is not a country to which subsection (1) applies; or

  • (ii) returns to New Zealand.

(3) For the purposes only of subsection (2)(b)(ii), a person does not return to New Zealand if—

• (a) he or she—

  • (i) interrupts his or her overseas travel, and travels to and stays briefly in New Zealand, in order to attend an event (for example, a wedding or funeral) or to visit a person (for example, a sick or injured family member); and then

  • (ii) resumes his or her overseas travel; and

• (b) he or she does not while in New Zealand begin to receive New Zealand superannuation otherwise than under this section.

(4) Except to the extent provided by paragraphs (a)(i) and (b)(i) of subsection (2), a person does not cease to be entitled to be paid New Zealand superannuation under that subsection by reason only of changing his or her intentions after leaving New Zealand.

(5) Subsection (4) is for the avoidance of doubt.

(6) The rates referred to in subsection (2) are,—

• (a) for a single person, a rate that is a proportion (calculated under section 26A(1)) of the amount stated in clause 1(b) of Schedule 1:

• (b) for a person who is married or in a civil union or in a de facto relationship, a rate that is a proportion (calculated under subsection 26A(1)) of the amount stated in clause 1(c) of that schedule.

(7) This section is subject to section 26B.

(1) The proportion referred to in section 26(6) is to be calculated by—

• (a) treating each period during which the person concerned has resided in New Zealand while aged 20 or more and less than 65 as whole calendar months and (where applicable) additional days; and

• (b) adding the number of additional days (if any), dividing the total by 30, and disregarding any remainder; and

• (c) adding the number of calendar months and the quotient calculated under paragraph (b); and

• (d) dividing by 540 the total calculated under paragraph (c).

(2) In the determination for the purposes of subsection (1) of the periods during which a person has resided in New Zealand, no account is to be taken of—

• (a) any period of absence from New Zealand of a kind described in section 9(1); or

• (b) any period of absence from New Zealand—

  • (i) while the person was engaged in missionary work as a member of, or on behalf of, any religious body; or

  • (ii) while the person's spouse or partner was engaged in missionary work as a member of, or on behalf of, any religious body, and the person was with his or her spouse or partner; or

• (c) any period of absence from New Zealand while the person was (by virtue of section 79(1)(a) of the Social Security Act 1964) deemed to have been resident in New Zealand; or

• (d) any period of absence from New Zealand while, as the spouse or partner of a person deemed by section 79(1)(a) of the Social Security Act 1964 to have been resident in New Zealand, the person was also (by virtue of section 79(1)(b) of the Social Security Act 1964) deemed to have been resident in New Zealand.

(3) Subsection (2) applies to a period of absence only if the chief executive is satisfied that during it the person concerned remained ordinarily resident in New Zealand.

(4) Subsection (2)(b) applies to a period of absence only if the chief executive is satisfied that the person concerned either was born in New Zealand or—

• (a) in the case of a person to whom subsection (2)(b)(i) applies, was ordinarily resident in New Zealand immediately before leaving New Zealand to engage in the missionary work concerned:

• (b) in the case of a person to whom subsection (2)(b)(ii) applies, was ordinarily resident in New Zealand immediately before leaving New Zealand to accompany or join his or her spouse or partner.

A person is not entitled to be paid New Zealand superannuation under section 26 unless he or she—

• (a) has made an application for the payment of New Zealand superannuation under that section stating either (as the case may be)—

  • (i) the country or countries in which he or she intends to reside and the period for which he or she intends to reside there; or

  • (ii) the country or countries to and in which he or she intends to travel; and

• (b) is ordinarily resident and present in New Zealand on the day he or she makes the application, and—

  • (i) is entitled to receive New Zealand superannuation on that day; or

  • (ii) will become entitled to receive New Zealand superannuation before he or she leaves New Zealand.

(1) This section applies if a person did not make an application for payment under section 26 while ordinarily resident and present in New Zealand because he or she left New Zealand intending to be absent for 26 weeks or less.

(2) The chief executive may accept an application for payment in accordance with section 26 if satisfied that the absence for more than 26 weeks is or was due to circumstances beyond the applicant’s control that could not reasonably have been foreseen before leaving New Zealand.

(3) If the chief executive has accepted an application under subsection (2) and, after the applicant left New Zealand, the applicant has been paid any instalment of New Zealand superannuation in accordance with sections 21 to 25, no liability to repay any of those instalments arises merely because the applicant fails to return to New Zealand within the period allowed for by those sections.

(1) The date of commencement of payment overseas of New Zealand superannuation under section 26 is the first pay day after the date of the applicant’s departure from New Zealand.

(2) However, in the case of an application under section 27, the date of commencement is the first pay day after the date on which the application was received by the department.

(3) Subsection (2) is subject to section 80AA of the Social Security Act 1964.

(1) [Repealed]

(2) A person who is receiving New Zealand superannuation overseas under section 26 is not entitled to receive any living alone payment, supplementary or special benefit, temporary additional support, lump sum payment, or any other assistance under the Social Security Act 1964 or under any welfare programme approved under section 124(1)(d) of that Act.

(3) Despite the provisions of section 80 of the Social Security Act 1964, on the death of a person who receives New Zealand superannuation overseas under section 26, the benefit terminates on a date to be determined by the chief executive, being a date not more than 4 weeks after the date of death.

(4) [Repealed]

(4A) Except as provided in this section, the Social Security Act 1964 (other than sections 69G to 69I, 70, 74(1)(a), 75, 75A, 76, 77, and 82(7)) applies to New Zealand superannuation being paid under section 26.

(5) [Repealed]

(1) In sections 31 to 35, specified Pacific country means a country or territory—

• (a) that is listed in Schedule 2; and

• (b) that is not a country with which New Zealand has a reciprocal agreement in force under section 19 of the Social Welfare (Transitional Provisions) Act 1990, which relates to the portability of New Zealand superannuation.

(2) The Governor-General may from time to time, by Order in Council, amend Schedule 2 by—

• (a) adding the name of any Pacific country or territory; or

• (b) omitting the former name of a country or territory and substituting its new name.

(3) The Order in Council must state the date on which it takes effect, which may be a date before the date on which it is made.

(4) The Order in Council applies to payments of New Zealand superannuation under section 31 payable on or after the date on which the order takes effect.

(5) Section 61H(3) to (6) of the Social Security Act 1964 applies to every Order in Council made under subsection (2)(a) as if it had been made under that section.

(1) A person entitled to receive New Zealand superannuation is entitled to be paid the benefit in a specified Pacific country at a rate calculated under section 32 if subsection (2) or subsection (3) applies to the person.

(2) This subsection applies to a person—

• (a) who intends to leave New Zealand to reside for more than 52 weeks in a specified Pacific country; and

• (b) who is resident and present in New Zealand on the date of his or her application to be paid New Zealand superannuation in a specified Pacific country; and

• (c) who—

  • (i) is entitled to receive New Zealand superannuation on the date of the application; or

  • (ii) will be entitled to receive New Zealand superannuation before leaving New Zealand; and

• (d) who is resident in a specified Pacific country when each payment of New Zealand superannuation is due to be made to him or her.

(3) This subsection applies to a person—

• (a) who—

  • (i) was being paid New Zealand superannuation while resident in a specified Pacific country immediately before 1 October 1999 under section 17 of the Social Welfare (Transitional Provisions) Act 1990; or

  • (ii) was being paid New Zealand superannuation while resident in the Cook Islands, Niue, or Tokelau immediately before 1 October 1999 under section 17B of the Social Welfare (Transitional Provisions) Act 1990 as it was immediately before that date; and

• (b) who is resident in a specified Pacific country when each payment of New Zealand superannuation is due to be made to him or her.

(1) The rate of New Zealand superannuation payable under section 31 is,—

• (a) in the case of a person who has resided in New Zealand for 20 or more years since turning 20 years, the base rate:

• (b) in the case of a person who has resided in New Zealand for 10 or more years but fewer than 20 years since turning 20 years, an amount calculated using the following formula:

  a × b 20

  where—

  a

  is the base rate

  b

  is the whole number of years the person has resided in New Zealand since turning 20 years:

• (c) in the case of a person who is resident in a specified Pacific country and was being paid New Zealand superannuation immediately before 1 October 1999 under section 17 or section 17B of the Social Welfare (Transitional Provisions) Act 1990 as it was immediately before that date, the higher of—

  • (i) the amount he or she was being paid immediately before that date; and

  • (ii) the appropriate amount payable under paragraph (a) or paragraph (b).

(2) For the purposes of this section, the base rate is,—

• (a) in the case of a single person, the amount stated in clause (1)(b) of Schedule 1; and

• (b) in the case of a person who is married or in a civil union or in a de facto relationship, the amount stated in clause (1)(c) of that schedule.

(3) However, if section 70 of the Social Security Act 1964 applies, that amount must be reduced by the amount deducted in accordance with that section.

(1) The commencement date of payment of a benefit under section 31 is the first pay day after the date of the person’s departure from New Zealand.

(2) When a person being paid a benefit under section 31 dies, the benefit terminates on a date to be determined by the chief executive, being a date not more than 4 weeks after the date of death.

A person being paid a benefit under section 31 is not entitled to receive—

• (a) any supplementary or special benefit, temporary additional support, lump sum payment, payment under a welfare programme approved under section 124(1)(d) of the Social Security Act 1964, or any other assistance under that Act; or

• (b) a living alone payment under section 13.

(1) Sections 22 to 29 do not apply in respect of New Zealand superannuation being paid in a specified Pacific country under section 31.

(2) The Social Security Act 1964 (except sections 74(a), 75, 75A, 76, 77, and 80) applies to New Zealand superannuation being paid in a specified Pacific country under section 31.

This Part—

• (a) establishes the New Zealand Superannuation Fund:

• (b) provides for payments into and out of the Fund:

• (c) establishes the Guardians of New Zealand Superannuation to manage and administer the Fund:

• (d) requires the Guardians to invest the Fund on a prudent, commercial basis:

• (e) empowers the Minister to give directions to the Guardians regarding the Government’s expectations as to the Fund’s performance, and requires the Guardians to have regard to those directions:

• (g) provides for other matters relating to the Fund and the Guardians.

This section establishes the New Zealand Superannuation Fund (the Fund).

The Fund consists of—

• (a) the capital contributions payable under this Act:

• (b) money payable under section 45 to cover the expected net cost of New Zealand superannuation entitlements that are payable in the current year:

• (c) Fund investments:

• (d) money accruing from the investment of the Fund:

• (e) any other money that may be lawfully payable into the Fund:

• (f) money in a Crown Bank Account opened under section 39.

(1) The Treasury must open a Crown Bank Account for the Fund at any bank or banks that the Minister may direct.

(2) The Guardians must maintain and operate the accounts in accordance with any directions given by the Minister or the Treasury.

(2A) Sections 114 and 115 of the Crown Entities Act 2004 do not apply to a direction under subsection (2).

(3) The Guardians must ensure that the accounts are not overdrawn at any time.

(4) The Public Finance Act 1989 (except sections 65I, 65J, 79, and 80) applies to the accounts with necessary modifications.

(5) Money in the accounts is public money for the purpose of the Public Finance Act 1989. Other Fund money is not public money for that purpose.

The Fund is the property of the Crown.

(1) The Fund must be held for the purpose of paying New Zealand superannuation.

(2) In addition, money may be paid out of the Fund—

• (a) to pay any fee that is payable to an investment manager or custodian in respect of the Fund:

• (b) to meet any other obligation that is directly related to the operation of the Fund:

• (c) to pay the taxation liabilities arising in respect of the Fund:

• (d) to meet any capital withdrawal under section 47.

(3) No payment may be made out of the Fund except in accordance with subsection (1) or subsection (2) and unless it has been authorised by the Guardians.

(1) The Treasury must, each financial year, calculate the amount of the annual capital contribution to the Fund required under section 43.

(2) The Treasury must include, in the economic and fiscal update prepared under section 26O of the Public Finance Act 1989,—

• (a) the amount of the required annual capital contribution so calculated for the financial year; and

• (b) a statement of the assumptions and judgments on which the calculations are based.

(3) Part 2 of the Public Finance Act 1989 (including, without limitation, section 26W) applies to the matters that are included in the economic and fiscal update under this section as if they were required to be included under that Act.

The required annual capital contribution for each financial year is—

(1) If the Government intends to pay less into the Fund in any financial year than the required annual capital contribution, the Minister must include, in the fiscal strategy report prepared under Part 2 of the Public Finance Act 1989,—

• (a) the amount of the required annual capital contribution stated in the economic and fiscal update under section 42 in respect of the financial year; and

• (b) a statement of the amount of annual capital contribution actually to be paid into the Fund in that year; and

• (c) a statement of the reasons for the Government’s departure from the required annual capital contribution; and

• (d) a statement of the Government’s intentions regarding future contributions to the Fund; and

• (e) a statement of the approach the Government intends to take to ensure that the Fund will be sufficient to meet the payments of New Zealand superannuation entitlements expected to be made over the next 40-year period.

(2) The requirements of this section do not apply if the required annual capital contribution is less than zero.

(1) The Minister must ensure that sufficient money is transferred into the Fund in each financial year to meet the net cost of the New Zealand superannuation entitlements that are payable out of the Fund during that year.

(2) The requirement in subsection (1) is additional to, and separate from, the obligation to make required annual capital contributions.

The Minister may pay any money into the Fund that is additional to that required under this Act.

(1) If the required annual capital contribution is less than zero, the Minister may require a capital withdrawal to be made from the Fund up to that amount and paid into a Crown Bank Account.

(2) However, no capital withdrawal is allowed from the Fund in any financial year commencing before 1 July 2020.

(1) This section establishes the Guardians of New Zealand Superannuation (the Guardians).

(2) The Guardians are a Crown entity for the purposes of the section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to the Guardians except to the extent that this Act provides otherwise.

(1) [Repealed]

(2) [Repealed]

(3) Sections 100 and 160 to 164 of the Crown Entities Act 2004 do not apply to the Guardians in relation to the Fund.

(4) There are no restrictions on the Guardians’ power to invest the Fund, other than as provided by sections 58, 59, and 64.

(5) This section is subject to section 50 (borrowing).

(1) The Guardians may not, except with the approval of the Minister of Finance,—

• (a) borrow money (in respect of the Fund); nor

• (b) mortgage or charge any of the real or personal property of the Fund, whether present or future, as security; nor

• (c) hold any financial instrument that places or may place a liability or a contingent liability on the Fund, or the Crown.

(2) The Minister’s approval may be given for any class of transactions in subsection (1)(a) to (c).

(1) The functions of the Guardians are to manage and administer the Fund in accordance with this Act.

(2) The Guardians are not a trustee, or a constructive trustee, in relation to the exercise of their functions or any other matter.

The expenses of the Guardians must be met out of money appropriated by Parliament for the purpose.

(1) The board must consist of at least 5, but not more than 7, board members appointed by the Governor-General on the recommendation of the Minister.

(2) This section applies despite section 28(1)(a) of the Crown Entities Act 2004.

(1) The Minister must only recommend a person for appointment as a board member who,—

• (a) in the Minister’s opinion, has substantial experience, training, and expertise in the management of financial investments; and

• (b) has been nominated by the nominating committee.

(2) This section applies in addition to section 29 of the Crown Entities Act 2004.

(1) The Minister must establish a committee to nominate candidates to the Minister for appointment as members of the board.

(2) The nominating committee must comprise not less than 4 persons with proven skills or relevant work experience that will enable them to identify candidates for appointment to the board who are suitably qualified.

(3) The expenses of the nominating committee must be met out of money appropriated by Parliament for the purpose.

(4) The Minister must notify the nominating committee of persons who the Minister considers to have an interest in appointments to the board, and the nominating committee must consult with those persons or representatives of those persons.

(5) Subsection (4) does not limit consultation or the calling for expressions of interest in appointments.

(6) After receiving nominations for appointment from the nominating committee, the Minister must consult with representatives of other political parties in Parliament before recommending that the Governor-General appoints a person to the board.

Schedule 3 applies to the board and its members.

(1) The Guardians are responsible for investing the Fund.

(2) The Guardians must invest the Fund on a prudent, commercial basis and, in doing so, must manage and administer the Fund in a manner consistent with—

• (a) best-practice portfolio management; and

• (b) maximising return without undue risk to the Fund as a whole; and

• (c) avoiding prejudice to New Zealand’s reputation as a responsible member of the world community.

(1) The Guardians must use their best endeavours to ensure that the Fund does not control any other entity or hold a percentage of the voting rights in any other entity that would require it to seek control of that entity.

(2) If a contravention of subsection (1) arises (through inadvertence or otherwise), the Guardians must take all reasonable steps to remedy the default as soon as practicable.

(3) For the purposes of this Act, an entity is controlled by the Fund if—

• (a) the entity is a subsidiary of the Fund; or

• (b) the Fund controls the entity within the meaning of any relevant approved financial reporting standard (within the meaning of section 2(1) of the Financial Reporting Act 1993); or

• (c) the Fund can control directly or indirectly the composition of the board of the entity within the meaning of sections 7 and 8 of the Companies Act 1993 (which, for the purposes of this paragraph, are to be read with all necessary modifications).

(4) This section does not prevent the board establishing a Crown entity subsidiary of the Guardians (within the meaning of section 8 of the Crown Entities Act 2004).

(1) The Guardians must establish, and adhere to, investment policies, standards, and procedures for the Fund that are consistent with their duty to invest the Fund on a prudent, commercial basis, in accordance with section 58.

(2) The Guardians must review those investment policies, standards, and procedures for the Fund at least annually.

A statement of investment policies, standards, and procedures must cover (but is not limited to)—

• (a) the classes of investments in which the Fund is to be invested and the selection criteria for investments within those classes; and

• (b) the determination of benchmarks or standards against which the performance of the Fund as a whole, and classes of investments and individual investments, will be assessed; and

• (c) standards for reporting the investment performance of the Fund; and

• (d) ethical investment, including policies, standards, or procedures for avoiding prejudice to New Zealand’s reputation as a responsible member of the world community; and

• (e) the balance between risk and return in the overall Fund portfolio; and

• (f) the fund management structure; and

• (g) the use of options, futures, and other derivative financial instruments; and

• (h) the management of credit, liquidity, operational, currency, market, and other financial risks; and

• (i) the retention, exercise, or delegation of voting rights acquired through investments; and

• (j) the method of, and basis for, valuation of investments that are not regularly traded at a public exchange; and

• (k) prohibited or restricted investments or any investment constraints or limits.

(1) The Guardians may appoint, on any terms and conditions that the Guardians think fit, 1 or more persons (including any department) to undertake the investment of any part of the Fund.

(2) Different persons may be appointed for different parts of the Fund.

(3) The Guardians must state, in each instrument of appointment, the powers and rights of the person appointed (including, without limitation, the extent of that person’s power to delegate any of those powers and rights).

(4) This section does not limit section 49 of this Act or section 17 of the Crown Entities Act 2004.

(1) The Guardians may appoint a person or persons (including any department) to act as custodian of the Fund, or any part of the Fund.

(2) A custodian so appointed must hold the property of the Fund, or that part of the property of the Fund for which they have been appointed, in their name or, if the Guardians authorise it, in the name of 1 or more nominees.

(3) An appointment may be on any terms and conditions that the Guardians think fit.

(4) The Guardians must specify, in each instrument of appointment, the powers and rights of the person or persons appointed (including, without limitation, the extent of that person’s powers to delegate any of those powers and rights).

(5) This section does not limit section 49 of this Act or section 17 of the Crown Entities Act 2004.

(1) The Minister may, after consultation with the Guardians, give directions to the Guardians regarding the Government’s expectations as to the Fund’s performance, including the Government’s expectations as to risk and return.

(2) The Minister must not give a direction that is inconsistent with the Guardians’ duty to invest the Fund on a prudent, commercial basis, in accordance with section 58.

(3) Despite section 104 of the Crown Entities Act 2004 the Minister may not give a direction to the Guardians in respect of the Fund except in accordance with this section.

(4) [Repealed]

(5) [Repealed]

(6) The Guardians must notify the Minister of how the entity proposes to have regard to any direction.

(7) The Guardians’ annual report must include a statement of how the entity is having regard, or has had regard, during the year to any Ministerial directions given under this section.

The statement of intent of the Guardians prepared each financial year under Part 4 of the Crown Entities Act 2004 must include (in addition to any other requirements)—

• (a) a statement of the board’s expectations about the performance of the Fund over the next financial year, in sufficient detail to enable meaningful assessment against those expectations after the end of that financial year; and

• (b) a statement of the key risks to the performance of the Fund over the coming year and the actions being taken by the board to manage those risks; and

• (c) forecast financial statements of the Fund for the next financial year, including a statement of accounting policies.

(1) The Guardians must ensure that financial statements for the Fund are prepared for each financial year.

(2) The annual financial statements must be prepared in accordance with generally accepted accounting practice (as defined in section 3 of the Financial Reporting Act 1993) as if the Fund were a reporting entity.

(1) The Fund is to be treated as if it were a public entity as defined in section 4 of the Public Audit Act 2001 and, in accordance with that Act, the Auditor-General is its auditor.

(2) The Guardians must, not later than 90 days after the end of the financial year, forward the annual financial statements of the Fund to the Auditor-General.

(3) The Auditor-General must issue an audit opinion within 30 days of receipt of the annual financial statements and must return the annual financial statements, with the audit report attached, to the Guardians.

The annual report of the Guardians prepared each financial year under Part 4 of the Crown Entities Act 2004 must include (in addition to any other requirements, such as the entity’s own financial statements)—

• (a) the financial statements of the Fund for that financial year prepared under section 66; and

• (b) a statement of responsibility for the financial statements of the Fund, signed by the chairperson of the board and the chief executive of the Guardians (if any), and comprising the same statements that are required by section 155 of the Crown Entities Act 2004 as if the Fund were a Crown entity; and

• (c) the audit report on the financial statements; and

• (d) an analysis and explanation of the performance of the Fund over that financial year, including a comparison with the Guardians’ expectations about the performance of the Fund that were set out in the statement of intent relating to that financial year; and

• (e) a statement of the investment policies, standards, and procedures for the Fund established by the Guardians under section 60; and

• (f) a statement signed by the chairperson of the board and the chief executive of the Guardians (if any) certifying whether or not the investment policies, standards, and procedures for the Fund have been complied with throughout that financial year; and

• (g) a schedule of the investment managers and custodians used by the Guardians during that financial year and the classes of investments for which each was responsible.

(1) The Guardians must report to the Minister on the Fund at those intervals that the Minister may require.

(2) The Guardians’ report must include any information that the Minister may require.

(1) From time to time, there must be conducted a review of how effectively and efficiently the Guardians are performing their functions.

(2) The first performance review must be conducted as soon as practicable after 1 July 2003.

(3) Subsequent performance reviews must be conducted at intervals that are no more than 5 years apart (to be set by the Minister) after that.

(4) The Minister must set the terms of reference for the review, which must include (without limitation) requirements that the reviewer form an opinion about—

• (a) whether or not the investment policies, standards, and procedures, established by the Guardians are appropriate to the Fund; and

• (b) whether or not the investment policies, standards, and procedures, established by the Guardians have been complied with in all material respects; and

• (c) the investment performance of the Fund.

(5) Every performance review must be conducted by an independent person appointed by the Minister.

(6) Every person who conducts a performance review must, as soon as practicable after conducting it,—

• (a) prepare a written report on the conclusions reached and recommendations formulated as a result of conducting it; and

• (b) give copies of the report to the Minister and the Guardians.

(7) The Minister must present a copy of the report to the House of Representatives as soon as practicable after receiving it.

(8) The costs of conducting a performance review must be met out of money appropriated by Parliament for the purpose.

(1) A leader of a political party represented in Parliament may notify the Minister, in writing,—

• (a) of the party’s agreement to either Part 1 or Part 2 (or both); or

• (b) of the withdrawal of that party’s agreement to either Part 1 or Part 2 (or both).

(2) The Minister must, as soon as practicable after receiving a notification, make a recommendation to the Governor-General for an Order in Council to add or omit the name of the party to or from the relevant Part or Parts of Schedule 4, as the case may be.

(3) The Minister must also make a recommendation to the Governor-General for an Order in Council to omit the name of a political party from Schedule 4 if the party is no longer represented in Parliament.

(4) The Governor-General may, by Order in Council made on the recommendation of the Minister under subsection (2) or subsection (3), add names to, and omit names from, Schedule 4 in accordance with this section.

(1) The Minister must, on the introduction into the House of Representatives of a Government Bill that proposes an amendment to this Act, bring to the attention of the House the consultation process that was followed in the formulation of the proposed amendment.

(2) That statement must include (without limitation)—

• (a) whether consultation has taken place with the parties that are in agreement with the Part proposed to be amended (as listed in Schedule 4):

• (b) whether consultation has taken place with the Guardians (to the extent that the amendment relates to Part 2):

• (c) the results of the consultation.

(3) If the House of Representatives resolves that the balance in the Fund should be allocated to individual retirement accounts for all eligible contributors, the Guardians must report to the Minister and the Minister of Social Services and Employment, within 12 months of the date of the resolution, on the best means of allocating that balance to residents aged 18 or more having regard to the income tax paid by those individuals since 1 July 2001.

(1) The Fund is subject to income tax on any income derived from the Fund’s investments, and that income is to be treated as income of the Fund under the Income Tax Act 2007.

(2) The Fund may claim deductions under section BD 2 of the Income Tax Act 2007.

(3) The Fund is treated as if it were a body corporate for tax purposes.

(4) The Fund is not required to establish and maintain an imputation credit account under section OB 1 of the Income Tax Act 2007.

(5) [Repealed]

(6) [Repealed]

The Acts specified in Schedule 5 are consequentially amended in the manner set out in that schedule.

The Social Security (Disability Services) Regulations 1993 (SR 1993/250) are consequentially revoked.

Every person who, immediately before the commencement of this section, was entitled to receive New Zealand superannuation entitlements under the Social Security Act 1964 or the Social Welfare (Transitional Provisions) Act 1990 or the Social Security (Disability Services) Regulations 1993 is entitled to receive the corresponding New Zealand superannuation entitlements under Part 1.

The purpose of this Part is to continue the office of the Retirement Commissioner and to set out the Commissioner’s functions, powers, and duties.

In this Part and in Schedule 6, the terms Commissioner, Government, and Minister have the meanings set out in section 5A.

(1) There continues to be a Commissioner called the Retirement Commissioner.

(2) The Commissioner continues to be a corporation sole.

(3) The Commissioner is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(4) The Crown Entities Act 2004 applies to the Commissioner except to the extent that this Act expressly applies otherwise.

(5) The Commissioner is the board for the purposes of section 10 of that Act.

The functions of the Commissioner are as follows:

• (a) to develop and promote methods of improving the effectiveness of the retirement income policies from time to time implemented by the Government of New Zealand, including the promotion of education about retirement income issues and the publication of information about those issues:

• (b) to monitor the effects of retirement income policies that are being implemented in New Zealand:

• (c) to review the retirement income policies being implemented by the Government and to report to the Minister by 31 December 2007 and at 3-yearly intervals thereafter, in accordance with section 84:

• (d) to advise on retirement income issues, when requested to do so by the Minister:

• (e) to monitor the effectiveness of persons (whether referred to as ombudsmen or by any other term) who have been appointed (other than under statutory authority) to consider complaints and disputes about savings and investments; and to consider any issues addressed to the Commissioner by any such person and, if appropriate, to make recommendations to any person:

• (f) to collect and publish information for the purpose of enabling the fulfilment of any of the functions referred to in this section:

• (g) to perform such other functions as are conferred on the Commissioner by this Act or any other enactment.

(1) For each review to be conducted under section 83(c), the Minister must, not later than 12 months before the date on which the review is required to be completed, specify, by notice in writing addressed to the Commissioner,—

• (a) the aspects of retirement income policies being implemented by the Government of New Zealand that the review is required to address; and

• (b) the topics to be discussed in the Commissioner’s report.

(2) Before giving a notice under subsection (1) the Minister must consult with the Commissioner about the matters to be included in it.

(3) The Minister must, as soon as practicable after giving a notice under subsection (1), present a copy of that notice to the House of Representatives.

(4) Each review conducted under section 83(c) must address the aspects of retirement income policy required to be addressed by the notice relating to that review and the report must discuss the topics required to be discussed by that notice.

(5) The Minister must, as soon as practicable after receiving a report under section 83(c), present a copy of the report to the House of Representatives.

(1) Subject to the provisions of this Part and of any other enactment, the Commissioner has complete discretion in the performance or exercise, and the manner of the performance or exercise, of any function or power of the Commissioner.

(2) Without limiting subsection (1), the Commissioner may at any time, if he or she considers it appropriate,—

• (a) comment publicly on any matter relating to his or her functions; or

• (b) deliver to the Minister a report in writing on any retirement income issues that he or she considers the Minister should be advised of.

(3) The Minister must, as soon as practicable after receiving a report under subsection (2)(b), present a copy of that report to the House of Representatives.

The provisions in Schedule 6 apply to the Commissioner.

(1) The office continued by section 82 is the office of Retirement Commissioner established by section 5 of the Retirement Income Act 1993, and, accordingly, every reference to the Retirement Commissioner in an enactment or document made before the commencement of this Part is a reference to the Retirement Commissioner continued by section 82.

(2) On the commencement of this Part, the person who, immediately before that commencement, held office as Retirement Commissioner under the Retirement Income Act 1993 is to be taken to have been appointed as Commissioner under section 28 of the Crown Entities Act 2004—

• (a) for a term that expires on 16 January 2010; and

• (b) subject to the determination under the Remuneration Authority Act 1977 that applied to the person immediately before that commencement.

(3) This Part does not affect the employment of any person who, immediately before the commencement of this Part, was an employee of the Retirement Commissioner.

(1) The Commissioner may continue or complete any act, matter, or thing commenced by the Commissioner under the Retirement Income Act 1993 or the Retirement Villages Act 2003 but not completed on the commencement of this Part.

(2) The provisions of this Part apply with all necessary modifications to the continuation or completion of any act, matter, or thing referred to in subsection (1).

Unless the context otherwise requires, any reference to the New Zealand Superannuation Act 2001 in any enactment, rule, order, agreement, deed, or document of any other kind in force on the commencement of this section must be read as a reference to the New Zealand Superannuation and Retirement Income Act 2001.