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Reducing Debt for MSD clients travelling overseas

04 December 2018.

We want to make it easier for seniors travelling overseas to manage their extra payments.

Seniors travelling overseas can get extra payments like the Disability Allowance or Winter Energy Payment for up to 28 days before they're stopped.

We get information from the New Zealand Customs Service (Customs) that helps us to know when to stop those extra payments.

Under the Privacy Act, we need to give people getting New Zealand Superannuation or a Veteran's Pension 10 days’ notice before stopping their extra payments.

This means people can get overpaid and have to pay the money back, which is frustrating for seniors and us.

We want to change how we stop making these extra payments, when seniors are overseas, by removing the 10 days’ notice period.

This means MSD can stop a payment at the right time so seniors won't come home to a debt that needs to be repaid.

This is something we already do with people getting payments like Jobseeker Support.

This does not affect New Zealand Superannuation or Veteran’s Pension payments which can be paid to people travelling overseas for up to 26 weeks.

We would like to get your feedback about this proposal and make sure you're happy with this possible change.

Please note: Anyone can give feedback on this possible change. You don’t have to be getting New Zealand Superannuation or a Veteran’s Pension to take part.

More information about this change

People can still get extra payments like the Disability Allowance or the Winter Energy Payment for up to 28 days while overseas.

We would like to use the information we already get from Customs to stop extra payments after 28 days without giving notice. This means people will get paid the right amount and won’t come home to a debt that needs to be paid back.

How we stop extra payments now

This is an example of how we stop extra payments for seniors going overseas at the moment. (Click on the image to enlarge it.)

Image: how process currently works. A person returns from overseas to find a letter saying they owe $30 debt and must contact MSD. The person thinks it's strange MSD sent a letter when they were not there, and they could have cancelled payment.

How we would like to stop payments in the future

This is an example of how we would like to stop extra payments for seniors travelling overseas, by removing the 10 days’ notice period.

(Click on the image to enlarge it.)

Image: how process may work in future. A person returns from overseas to find a letter saying their payment was stopped while overseas, and will be restarted when they call MSD. The person calls MSD, and the payment is restarted.

We believe removing the 10 days’ notice period will significantly reduce the number of people coming home to debt.

Things that will stay the same

  • The kind of information we get from the New Zealand Customs Service, how it is transferred to us and what we use it for will stay the same.
  • Seniors can still get their New Zealand Superannuation or a Veteran’s Pension for up to 26 weeks while overseas. Please tell us if you’re planning to travel for more than 26 weeks.
  • We will still try to contact you before stopping your New Zealand Superannuation (NZS) or Veteran’s Pension (VP). This means you may still come home to a debt if we don’t hear from you.

Information Sharing Agreement (AISA) with NZ Customs

The Approved Information Sharing Agreement (AISA) with NZ Customs is now live.

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Documents

Reducing Debt for MSD clients travelling overseas - discussion document gives more detail about this proposed change.

Reducing Debt for MSD clients travelling overseas Privacy Impact Assessment - discusses the privacy risks of this change and how we plan to reduce them

Draft Approved Information Sharing Agreement - how we will share information with Customs and what that information will be used for

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