Pension portability for Islanders
Niueans, Tokelauans, and Cook Islanders will no longer need to return to New Zealand late in life to receive their Kiwi pensions, from 2019.
Prime Minister Jacinda Ardern made the announcement concerning pension portability after a bilateral meeting with Cook Islands Prime Minister Henry Puna.
The Cooks Islands, Niue, and Tokelau are part of the Realm of New Zealand, meaning all their citizens are also New Zealand citizens.
Currently those in the realm nations need to live 10 years in New Zealand past the age of 20 to be eligible for New Zealand pensions, including five over the age of 50.
The change will mean those five years over 50 will no longer be needed.
People would still need to spend 10 years as a resident in New Zealand over the age of 20 but can do that earlier in life.
It will also mean New Zealanders will be able to move to these nations after the age of 50 and keep their pension.
The issue has been raised often by leaders from the nations, who have progressively lost much of their population to New Zealand.
Ardern said there were plenty of people who lived and worked in New Zealand for at least 10 years in their life but then returned to Niue, Tokelau, or the Cook Islands in their middle age.
‘‘They’ll often run businesses, become members of the community here, but then find themselves in a situation where they will be considering leaving their home and their business, and their employment, in order to go back to New Zealand for those final five years to ensure their eligibility. That’s not a situation that we think is satisfactory,’’ Ardern said.
‘‘In many cases they may return to New Zealand and struggle to find work at that stage of their lives.’’
Ardern said Foreign Affairs Minister Winston Peters had raised the issue during coalition negotiations.
The change will affect superannuation and veterans’ pensions.
‘‘This will mean that people who are eligible for NZ Super will be able to remain in these countries and contribute to the local economy without having to return to New Zealand just to qualify for their pension,’’ Peters said.
Ardern said the change would cost roughly $3.5 million in the first year of implementation.
Social Development Minister Carmel Sepuloni is developing the legislation, which has been agreed to by Cabinet. The change will come into effect no later than January 2019.
Cook Islands Prime Minister Puna welcomed the move.
He thanked NZ First and Labour for their support for the move when he spoke about the issue during a select committee hearing in 2015.
‘‘They have delivered on their promise,’’ Puna said.
Ardern is in Rarotonga on the last stop of her five-day Pacific mission.
Before visiting Puna she was treated to a lavish welcome at the Atapare Marae within the House of Ariki.