Reducing Debt for MSD clients travelling overseas

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.

How to give feedback

The closing date for submissions is 25 January 2019.

You can give your feedback by completing the submission form.

Or, you can:

• email us at paymentswhenoverseas@msd.govt.nz with “Reducing debt for MSD clients” in the subject line
• post your feedback to:
  Payments when overseas
  Ministry of Social Development
  PO Box 1556
  Wellington 6140
  New Zealand.

In your submission, please:

• include a brief summary of your recommendations or concerns
• let us know if MSD can contact you to talk about your submission
• let us know if there is any information you would like withheld under the Official Information Act 1982.

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.)

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.)

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.