Overseas pensions

Q: I started working in 1972 in England, and for the next dozen years my employers paid my UK National Insurance. A dozen years later I went to work overseas and my mum advised me, “Pay your NI every year and you will get a full UK pension.”

I did so, paying a few hundred pounds every year even after arriving in NZ in 2003. Approaching my 65th birthday, I contacted Winz, which told me I would get NZ Superannuation but the UK pension would be deducted.

I was pleased that only 11 years work in NZ had given me the right to full NZ Superannuation and that it was more than the UK pension. For the next two years I happily received NZ Superannuation knowing that the UK was paying about 90 per cent of it.

Then I read a letter and your reply in the Saturday Herald . It pointed out that in New Zealand all compulsory foreigngovernment-run pensions are deducted. But employmentrelated pensions are not deducted. For example, I have a friend who gets an American teacher’s pension on top of her full NZ superannuation.

But the specific point you made was that the fraction of my UK pension that came from optional contributions made while working overseas should not be deducted from my NZ Superannuation.

I contacted MSD and it was very helpful. It took me some time to produce the proof from the UK, but ever since, I’ve got a full UK pension and also roughly 60 per cent of NZ Super. It leaves me several thousand dollars a year better off.

Incidentally, and much to my surprise, MSD calculated and back-repaid for the two years that I was unaware of this feature — a very pleasant lump sum of about $10,000.

I’m writing to let you warn other retired immigrants who may be missing out and also to publicly thank my mum, the MSD staff and you.