Warning on ACC

It is now quite common for people to continue working after reaching the qualification age for national superannuation (NZSQA), either from necessity or to keep active and productive.

However, nowhere in the information from ACC, the Ministry of Social Development or the Retirement Commission is it emphasised that once a person has attained the NZSQA, and is working, their earnings are subject to ACC levy, but if they suffer a serious accident, ACC can pay weekly compensation for a maximum of only 24 months.

This lack of information can be devastating for someone on super who believes ACC will pay weekly compensation until they are fit to work again, which is the normal situation for any earner.

Before 1992, when the NZSQA was 60, the law provided for earnings-related compensation to commence depending on the date of the accident, but ending when the claimant reached 70. That was the law until the 1992 act required superannuitants to elect to have weekly compensation or national super, but not both. Any superannuitant who is still earning should be aware that, although their earnings are subject to ACC levy, if they suffer a serious injury, they will receive weekly compensation for only a maximum of 24 months.

DON RENNIE

Woburn