War Pensions Amendment Bill (No 2)

Transcription

1 War Pensions Amendment Bill (No 2) Government Bill As reported from the Social Services Committee Commentary Recommendation The Social Services Committee has examined the War Pensions Amendment Bill (No 2) and recommends that it be passed with the amendments shown. Introduction This bill transfers the provisions for veterans' pensions from the Social Welfare (Transitional Provisions) Act 990 to the War Pensions Act 954 in order to consolidate the legislation governing veterans' entitlements. This will meet the veteran community's desire for their entitlements to be instituted and viewed separately from the wider social security system in recognition of the special status of veterans. The machinery provisions relating to the payment of veterans' pensions will remain in the Social Security Act 964. The bill will also enable veterans of working age to participate in voluntary or paid employment, should they be able without losing their veteran' s pension. Purpose The bill seeks to amend the regime that applies to veterans under retirement age. These veterans who apply for a veteran s pension must initially meet the qualification criteria, which includes providing evidence that they are unable to work due to a mental or physical 87--2

2 War Pensions Amendment (No 2) Commentary infirmity. However, if, after having been granted a veterans pension, a veteran who is under retirement age is able to work, either voluntarily or in paid employment, the veteran's pension will be subject to abatement. The abatement regime will ensure that veterans will not have to reapply for the veteran's pension after a period of paid employment and that they will always have a level of financial security regardless of how the nature of their employment may fluctuate. A point of difference with this bill, as opposed to other social security legislation, is that it does not contain a definition of fulltime work. Effectively this will allow veterans to work any number of hours, depending on their capability, without removing their entitlement to a veteran's pension. This aspect of the bill is essential to ensure that veterans feel they have special status, and to reduce stress on veterans and their families should their health or employment status change. Veterans' entitlements War disablement pension The war disablement pension is paid under the War Pensions Act 954 and is the primary form of financial assistance available to veterans. War disablement pensions are compensatory payments made in recognition of the ongoing impact that past war service may have on a veteran' s quality of life. It is a tax free, lifetime entitlement. Entitlement to a war disablement pension is not automatic. To be eligible for a war disablement pension, a veteran must have served with the New Zealand Armed Forces in a declared war or emergency, or had routine service with the New Zealand Armed Forces or New Zealand Police prior to April 974, and suffer from a disability that is deemed to be attributable to, or aggravated by, the veteran' s service. A disability may occur during service, or it may develop at a later date as a result of service. Veteran's pension The veteran' s pension is an income support payment and is paid at the same rate as New Zealand superannuation (subject to abatement). There are two means of qualifying for a veteran' s pension. One is for veterans of retirement age and the other is for veterans under retirement age.

3 Commentary War Pensions Amendment (No 2) 3 For veterans over retirement age, the veteran' s pension is an alternative to New Zealand superannuation. To qualify, the veteran must have served in a war or emergency and be qualified to receive a war disablement pension of at least 70 percent. For veterans under retirement age the veteran' s pension is an alternative to the invalid' s benefit. To qualify, the veteran must have service in a war or emergency and be prevented from undertaking employment due to mental or physical infirmity. The reason for the veteran being unable to work does not have to be service-related. The veteran's pension is taxed. As the veteran's pension is an income support payment, many of the provisions relating to the administration of the veteran' s pension are contained within the Social Security Act 964. The process for appealing decisions on eligibility for a veteran's pension is contained in the Social Security Act 964. The first point of review is the Secretary for War Pensions and, thereafter, the Social Security Appeal Authority. This bill will not change this process. Synopsis of submissions Of the nine submissions received on the bill, only one fully supports the bill. The other submissions support the recognition of the special status of veterans. These submissions express concern that veterans under retirement age have not been treated appropriately under the Social Welfare (Transitional Provisions) Act 990 and that this bill is only a step towards amending this situation. Key issues raised in submissions Many of the issues raised in the submissions are outside the scope of the bill and are addressed at the end of this commentary. A number of the submissions consider that the proposed abatement regime for veterans under retirement age and in receipt of a veteran' s pension, is not generous enough and would not recognise the special status of veterans and provide commensurate financial support. They propose that veterans not be subject to an abatement regime but, instead, be able to work a set number of hours per week-for example, 28 hours-without this affecting their veteran' s pension. One submitter suggested that the two means of qualification for a veteran's pension should not be linked to retirement age. The submitter contended that this has unfairly disadvantaged veterans who are under retirement age as, in practice, it produces one set of rules

4 4 War Pensions Amendment (No 2) Commentary for veterans of retirement age and one set of rules for veterans under retirement age. Other submitters raised the concern that the bill may affect the current process of appeal against decisions on eligibility for a veteran' s pension that are governed by the Social Security Act 964. Conversely, other submitters are disconcerted by the connection between the provisions relating to the veteran' s pension and the Social Security Act 964. These submitters argue that maintaining the connection to the Social Security Act 964 does not ensure sufficient separation of veterans' entitlements from the wider social security system and that being considered as a beneficiary does not recognise the special status of veterans. In this context, one submitter considers that the Code of Conduct for employees of the department responsible for the payment of veterans pensions should not apply in respect of veterans' pensions. Rather, it was suggested that a separate code of conduct, specific to veterans should, be issued. Attorney-General's report on the bill pursuant to section 7 of the New Zealand Bill of Rights Act 990. A policy issue in relation to the bill is the fact that the it does not provide legal recognition to same sex de facto couples. This issue was highlighted by the Ministry of Justice in the vetting of the bill for compliance with the New Zealand Bill of Rights Act 990. The Ministry of Justice has identified an issue of discrimination on the grounds of sexual orientation. In particular, this discrimination relates to how the rates are determined for the purpose of the veteran's pension and lump sum payments on death. The veteran' s pension is a benefit and, therefore, many provisions relating to its application are contained within the Social Security Act 964. As a consequence, the recognition of same sex relationships for the purpose of the veteran' s pension has been aligned with the timeframe set by the Ministry of Social Development for the legal recognition of same sex couples for all social assistance. Pursuant to section 7 of the New Zealand Bill of Rights Act 990 and Standing Order 260, the Attorney-General brought the bill to the attention of the House when the bill was introduced. Our advisers informed us that they would work with the Ministry of Social Development to progress this issue. We will take it up with officials

5 Commentary War Pensions Amendment (No 2) 5 from the Ministry of Social Development when they give evidence to us on other occasions. Proposed amendments Clause 5-New Part 6 inserted New section 70-Entitlement to a veteran's pension Three submitters did not wish to have the definition of war or emergency used to determine entitlement to a war disablement pension apply to the qualification criterion for eligibility for a veteran' s pension. They sought assurance that the definition of war or emergency used to determine entitlement to a war disablement pension would not apply to the qualification criterion for eligibility for a veteran' s pension. Qualification for a veteran' s pension is contingent on a veteran having had service in a war or emergency. The Social Welfare (Transitional Provisions) Act 990 does not define the term 'war' or 'emergency'. When the Social Welfare (Transitional Provisions) Act 990 was enacted, the veteran's pension maintained a connection with the War Pensions Act 954 via section 2 of that Act. However, this section does not define war or emergency. The submissions received on this issue use a Social Security Appeal Authority decision to argue that the definition of war or emergency for the war disablement pension should not automatically apply to the veteran's pension. The case quoted by the submitters relates to a Social Security Appeal Authority decision made in 995. At this time the issue of the definition of war or emergency in relation to eligibility for a veteran' s pension was concerned primarily with the status of service in Malaya and Indonesia. In 995 service in Malaya and Indonesia was considered as routine service only, for the purpose of accessing a war disablement pension under the War Pensions Act 954, and therefore was not qualifying service for a veteran's pension. In its consideration of this particular case the Social Security Appeal Authority did not consider that it was bound by section BOA of the War Pensions Act 954 and determined that service in the Malayan Emergency should be considered as emergency service for qualification for a veteran's pension. In 999 the Government recognised service in the Malayan Emergency, Indonesian Confrontation and on the Thai/Malay border as emergency service. Initially some restrictions were applied to the service

6 6 War Pensions Amendment (No 2) Commentary requirements for these emergencies. However. these restrictions were removed in June One submitter also referred to the status of service in Operation Grapple. Service as part of Operation Grapple was declared to be emergency service in 998. Since 999 cases before the Social Security Appeal Authority have been concerned primarily with individuals' service history and qualification, rather than whether a specific period of service is considered to be war or emergency service. Historically, and in current practice, the definition of a war or emergency for a war disablement pension has also applied to any other veteran' s entitlement where eligibility is based on service. It is intended that any question that arises as to whether service is in connection with an emergency will be dealt with in the same way as it is in section 8OA of the War Pensions Act 954. The submitters proposed that war and emergency service under the War Pensions Act 954 should be defined in one way in relation to a war disablement pension and in another way in relation to the veteran's pension. We consider that this situation would be unfair and inconsistent. It would be difficult to justify and administer given that one of the intentions of this bill is to consolidate the legislation governing veterans' entitlements to ensure ease of access and fair treatment of veterans. It is the intention of the bill that any issues concerning whether or not a person has served in connection with an emergency are determined by the Minister of Veterans' Affairs. To ensure the bill has this effect, we recommend that an amendment be made that clarifies that these issues are determined in the same way that they are determined under section 80A of the War Pensions Act 954. New Section 67-Interpretation. One submitter requested clarification of the definition of Income Test 3 and sought its inclusion in the interpretation section of the bill. Clause 5, new section 67, states that any term not defined in the new Part 6 of the War Pensions Act 954 has the same meaning as stated in either section 2 of the Act or section 3() of the Social Security Act 964. Income Test 3 is defined in section 3() of the Social Security Act 964. While there are sufficient cross-over provisions in the bill, as drafted, to ensure that the term Income Test 3 has the same meaning for the purpose of Part 6 of the War Pensions

7 Commentary War Pensions Amendment (No 2) Act 954 as it does for the Social Security Act 964, we recommend the definition of Income Test 3 be inserted into new section 67 for the sake of clarity. New section-74j Payment overseas of veteran's pension The bill does not state whether the rates at which a veteran' s pension is paid under new section 74J are subject to abatement under new section 74D of the bill. New section 74J is based on sections 7() and (2) of the Social Welfare (Transitional Provisions) Act 990. This section relates to the rate at which a veteran's pension will be paid to a person who qualifies for a veteran's pension and does not reside in New Zealand, a specified Pacific country or in a country with which New Zealand has a reciprocal social security agreement. Reference in this section is made to the gross rate at which the veteran' s pension is paid. A qualification needs to be inserted into the bill to state that the gross rate referred to in section 74J is, where appropriate, subject to abatement. This will ensure that the treatment of the veteran' s pension for recipients resident overseas is consistent with the treatment of recipients resident in New Zealand. A consequential change is needed to new section 74M. We recommend that an amendment be made to the new section 74J to clarify that, where appropriate, the gross rate of veterans pension referred to in that section is subject to abatement under new section 74D. New section-74p Rates of veteran's pension payable to people resident in specified Pacific countries. The bill does not state whether the rates at which a veteran's pension is paid under new section 74P is subject to abatement under new section 74D. The rates at which the veteran's pension is paid under section 74P needs, where appropriate, to be subject to abatement under new section 74D. New section 74P is based on section 7C of the Social Welfare (Transitional Provisions) Act 990. This section relates to the rates of veteran' s pension payable to people resident in specified Pacific countries and outlines the formula by which rates of payment of veterans' pensions are determined. Reference in this section is made to the base rate, which forms the basis for calculating the rate at which an individual will be paid a veteran's pension. A qualification needs to be inserted into the bill to state that the base rate referred to in new section 74P is, where appropriate, subject to abatement. This will ensure the treatment of

8 8 War Pensions Amendment (No 2) Commentary the veteran' s pension for recipients resident overseas is consistent with the treatment of recipients resident in New Zealand. We recommend an amendment to new section 74P to clarify that, where appropriate, the base rate of veterans' pensions referred to in that section is subject to abatement under new section 74D. Technical amendments We are recommending a number of minor technical amendments to clarify and ensure the efficacy and consistency of provisions in the bill. Other issues A variety of issues not included in the bill were raised by submitters. Some of these are outside the scope of the bill and include:- the portability of pensions to other countries the ability of veterans' surviving spouses who are under retirement age to be able to continue to receive the veteran' s pension after their spouse dies coverage of all New Zealand Defence Force personnel, whether they have served in a recognised war or emergency or not, by the War Pensions Act 954 rather than accident compensation legislation extension of section 42 of the Police Act 958 to extend cover under the War Pensions Act 954 to include situations where members of the New Zealand Police serve in a war or emergency environment re-education and job training, in particular through the reintroduction of the Rehabilitation Act, repealed in 99, to help veterans to remain in the workforce. One particular issue outside the scope of the bill is the recognition of service on board HMNZS Otago and HMNZS Cankrbury during French nuclear tests on Mururoa Atoll in 973 as emergency service for the purpose of both a war disablement pension and the service qualification for eligibility for a veteran's pension. At the time one oral submitter on this issue was heard, this period of service was considered to be routine service for the purpose of the war disablement pension but not emergency service. Service at Mururoa Atoll did not therefore meet the service qualification for entitlement to a veteran' s pension. Since the submitter was heard the Minister of Veterans' Affairs has addressed this issue by declaring service at

9 Commentary War Pensions Amendment (No 2) 9 Mururoa Atoll as emergency service for the purpose of both the war disablement pension and the service quali fication for the veteran' s pension. Conclusion We consider this bill is a useful consolidation of the legislation governing veterans' pension entitlements and we commend our suggested amendments to the House. Appendix Committee process The War Pensions Amendment Bill (No 2) was referred to the previous committee on 2 May 2002 and carried over to this Parliament on June 2002 at the stage it was at on the dissolution of the last Parliament. The closing date for submissions was 7 June A total of nine submissions was received. The previous committee received four submissions and we received five submissions from interested groups and individuals. The previous committee heard oral evidence from one submitter and we heard from two submitters. Hearing evidence and consideration by both committees took a total of two hours and 6 minutes. We received advice from Veterans' Affairs New Zealand (part of the New Zealand Defence Force) and Parliamentary Counsel. Committee membership Georgina Beyer (Chairperson) Dr Muriel Newman (Deputy Chairperson) Paul Adams Sue Bradford Judith Collins Taito Phillip Field Dave Hereora Luamanuvao Winnie Laban Katherine Rich Barbara Stewart

10 War Pensions Amendment (No 2) Key to symbols used in reprinted bill As reported from a select committee Struck out (unanimous) Subject to this Act, Text struck out unanimously New (unanimous) Subject to this Act, Text inserted unanimously Qubject to this Act, Subject to this Act. Words struck out unanimously Words inserted unanimously

11 Hon George Hawkins War Pensions Amendment Bill (No 2) Government Bill Contents 3 4 4A 4B 4C 5 Title Commencement Part Amendments to principal Act Application of Act Act divided into Parts Wai Pensions Appeal Boards Pensions for members of mercantile marine and their dependants in respect of disablement or death resulting from Second World War Pensions for members of Emergency Reserve Corps and their dependants in respect of disablement or death attributable to their service New Pait 6 inserted Part 6 Veterans' pensions 67 Interpretation 68 Administration of veterans' pensions 69 Delegation of Secretary's powers Elititle}nent 70 Entitlement to veteran's pension 7OA Service in connection with any emergency 7 Veteran's ability to earn employment income 72 Medical examination of applicant for veteran's pension 73 Commencement of veteran's pension 74 Rates of veteran k pensions 74A Lump sum payments on death 74B Persons formerly receiving certain pensions or allowance entitled to veteran's pension 74C Annual adjustment of rates of veterans pensions 74D Abatement 5A 6 Pay,}ient ove,-seas Of retemns' pmsiom 74E Effect of absence from New Zealand on veteran's pension 74F First 26 weeks of certain tempot ary absences 746 Absences up to 2 years for medical treatment 74H Absences up to 52 weeks with aid agencies 74I I)ate absence commences 74J Payment overseas of veterank pension 74K Applications after leaving New Zealand 74L Date of commencement of payment overseas 74M Relationship with other benefit provisions 74N Specified Pacific country 740 Entitlement to be paid veteran's pension in specified Pacific country 74P Rates of payment of veteran' s pension payable to people resident in specified Pacific countries 74Q Commencement and ternlination of payments 74R Effect on other benefits 74S Application of this Act and Social Security Act T Certain fornier economic pensioners may be paid up to the full rate of vetemn's pension overseas 74U Living alone payments 74V Commencement of living alone payinents 74W Transitional provision for existing veteran's pension entitlements Death of claimant for pension New Schedules I to 3 inserted 87--2

12 Cl War Pensions Amendment (No 2) 7 8 Part 2 Miscellaneous provisions Consequential amendments Consequential repeals Schedule 2 Consequential amendments to other Acts Schedule 3 Consequential amendments to regulations Schedule 4 Schedule Schedules to 3 added to principal Act Acts consequentially repealed The Parliament of New Zealand enacts as follows: () (2) Title This Act is the War Pensions Amendment Act (No 2) 200. In this Act, the War Pensions Act 954'is called -the principal Act" No 54 2 Commencement This Act comes into force on the day after the date on which it receives the Royal assent. Part Amendments to principal Act 3 Application of Act 0 Section A of the principal Act is amended by omitting the words -of this Act" in the first place where those words appear, and substituting the words "or Part 6". 4 Act divided into Parts Section 3 of the principal Act is amended by inserting, after 5 the item relating to Part V, the following item: "Part 6-Veterans' pensions. (Sections 67 to 74W. F New (unanimous) 4A War Pensions Appeal Boards Section 8 of the principal Act is amended by repealing subsection (7). 20

13 War Pensions Amendment (No 2) Part I cl 5 New (unanimous) 4B Pensions for members of mercantile marine and their dependants in respect of disablement or death resulting from Second World War Section 62(2) of the principal Act is amended by omitting the words "Parts V and VI", and substituting the expression 5 "Part V". 4C Pensions for members of Emergency Reserve Corps and their dependants in respect of disablement or death attributable to their service Section 65(2) of the principal Act is amended by omitting the 0 words "Parts IV, VA, and VI", and substituting the expression "Part IV". 5 New Part 6 inserted The principal Act is amended by inserting, after Part V, the following Part: 5 Part 6 "Veterans' pensions -67 -() Interpretation In this Part and in Schedules to 3, unless the context otherwise requires,- 20 "Department means the New Zealand Defence Force (as defined in section 2( ) of the Defence Act 990) "dependent child, in relation to any person, means a child- "(a) whose care is primarily the responsibility of that person; and 25 "(b) who is being maintained as a member of that person' s family; and "(c) who is financially dependent on that person; and "(d) who is not a child in respect of whom payments are being made under section 363 of the Children, Young 30 Persons, and Their Families Act 989 'employment income means any salary, wage, allowance, bonus, gratuity, extra salary, compensation for loss of office 3

14 Part I cl 5 War Pensions Amendment (No 2) or employment, emolument (of whatever kind), or other benefit in money, for, or in connection with, the employment or service of the person; and- "(a) includes- "(i) subject to paragraph (b), any expenditure on 5 account of an employee (within the meaning of section OB of the Income Tax Act 994); and "(ii) any benefit of a kind referred to in section CH 2 of the Income Tax Act 994; and -(iii) in the case of a person who, in the relevant 0 period, has been provided, in respect of any office or position held by the person, with board or lod.ing, or the use of a house or quarters, or has been paid an allowance instead of being provided with board or lodging, or with the use of a house 5 or quarters, the value of those benefits (and the value of the benefits is to be determined, in the case of a dispute, by the Secretary); but -(b) does not include any employer superannuation contribution (within the meaning of section OB of the 20 Income Tax Act 994) New (unanimous) "income has the same meaning as in section 3( ) of the Social Security Act 964 -Income Test 3 means that the applicable rate of veterans pension must be reduced by 70 cents for every $ of the 25 combined income of the person in receipt of a veteran's pension and his or her spouse in excess of $80 per week "New Zealand superannuation means New Zealand superannuation paid or payable under the New Zealand Superannuation Act New (unanimous) "ordinarily resident, in relation to any person, does not include being unlawfully resident in New Zealand "Secretary means the Secretary for War Pensions; and includes any person for the time being authorised to exercise 4

15 War Pensions Amendment (No 2) Part cl 5 or perform any of the powers, duties, or functions of the Secretary -spouse means the husband or wife of an applicant or person in receipt of a veteran's pension, as the case may require. "(2) Unless the context otherwise requires, any word or expression 5 used in this Part or in Schedules to 3, but not defined in this Part, has the same meaning as it has in section 2 of this Act or in section 3() of the Social Security Act 964. Compare: 990 No 26 s 2 "68 "() Administration of veterans' pensions 0 This Part is administered in the Department. Nothing in the other Parts of this Act or the War Pensions Regulations 956 apply to this Part or affect the administration of veterans' pensions, except as otherwise expressly provided in this Part. 5.(3) -(4) "(5) In the application of any of the provisions of the Social Welfare (Transitional Provisions) Act 990 or of the Social Security Act 964 relating to veterans' pensions or the payment of veterans' pensions, references to the chief executive and department must be read, respectively, as references to the 20 Secretary and to the Department. Nothing in subsection (3) requires the Secretary to issue a separate code of conduct under section 8 of the Social Security Act 964 for the purposes of the administration of this Part. If a requirement is made under section of the Social Secur- 25 ity Act 964 relating to a veteran's pension, the code of conduct issued under section 8 of that Act by the chief executive of the department for the time being responsible for administration of that Act applies- "(a) to the Secretary as if the Secretary were the chief execu- 30 tive of the department; and "(b) to every officer or employee of the Department engaged in the administration of veterans' pensions as if they were officials or employees of the department. Compare: 990 No A "() Delegation of Secretary's powers The Secretary may, either generally or particularly, delegate to the chief executive of the department for the time being 5

16 Part cl 5 War Pensions Amendment (No 2) responsible for the administration of the Social Security Act 964 any of the Secretary's powers, functions, and discretions under- "(a) sections 70 to 748; and "(b) any other provision in this Part or the Social Security 5 Act 964 or the Social Welfare (Transitional Provisions) Act 990 that relates to the payment of veterans' pensions. "(2) The provisions of sections 4 and 42 of the State Sector Act 988 apply to every delegation made under subsection () as if 0 that delegation were made under section 4 of that Act. Compare: 990 No 26 s 2B " Entitlement -70 "() Entitlement to veteran's pension Subject to this Part and to the Social Security Act 964, a 5 person is entitled to receive a veteran' s pension if,- -(a) in any war or emergency in which New Zealand forces have served, that person either- "(i) served as a member of the forces, a member of the Mercantile Marine, or a member of the Emer- 20 gency Reserve Corps ; or "(ii) served as a member of the forces or as a member of the Mercantile Marine of any Commonwealth country (other than New Zealand) outside that Commonwealth country, and was ordinarily resi- 25 dent in New Zealand at the commencement of that war or emergency; and -(b) that person either- "(i) has attained the age at which he or she is entitled to receive New Zealand superannuation if other- 30 wise (entitled) qualified to receive it and is qualified to receive a pension under Part II, Part IV, or Part V at a rate of not less than 70% of the maximum rate of pension that would be payable for total disablernent; or 35 "(ii) because of any mental or physical infirmity is, in the Secretary's opinion, prevented from undertaking employment and, because of that infirmity, is likely to be prevented from undertaking 6

17 War Pensions Amendment (No 2) Part cl 5 employment permanently or for a substantial period. "(2) If a person is entitled to receive a veterans pension on account of his or her own service, or would have been entitled to receive it had he or she been alive, the spouse of that person 5 is entitled to receive a veteran's pension in the spouse' s own right if the spouse has attained the age at which he or she would be entitled to receive New Zealand superannuation if otherwise qualified to receive it. "(3) A person is not entitled to receive a veteran's pension if he or 0 she has at any time been in receipt of New Zealand superannuation unless he or she- -(a) is qualified to receive a pension under Part II, Part IV, or Part V at a rate of not less than 70% of the maximum rate of pension that would be payable for total disable- 5 ment; or "(b) had elected to receive New Zealand superannuation under section 66M (as inserted by section 4 of the War Pensions Amendment Act 986) and either,- -(i) before April 990, sent a written request to the 20 Secretary to forgo national superannuation paid or payable under the Social Security Act 964 and to receive instead a war service pension; or -(ii) on or after April 990, sent or sends a written request to the Secretary to forgo New Zealand 25 superannuation and to receive instead a veteran' s pension. -(4) In subsection (3), New Zealand superannuation means- -(a) New Zealand superannuation paid or payable under the New Zealand Superannuation Act 200; or 30 "(b) New Zealand superannuation paid or payable under the Social Welfare (Transitional Provisions) Act 990 before the commencement of the New Zealand Superannuation Act 200; or -(c) national superannuation or guaranteed retirement 35 income paid or payable, before April 994, under the Social Welfare (Transitional Provisions) Act 990; or -(d) national superannuation paid or payable, before April 990, under the Social Security Act 964. Compare: 990 No 26 s 8 zto

18 Part el 5 War Pensions Amendment (No 2) New (unanimous) -7OA Service in connection with any emergency If any question arises as to whether or not any member of the forces while on service was serving in connection with an emergency for the purposes of this Part, that question must be referred to and be decided by the Minister (as defined in 5 section 2()). 7 "() Veteran's ability to earn employment income This section applies to a person who- "(a) is in receipt of a veteran's pension; and "(b) qualified to receive that pension under either- 0 -(i) section 70()(b)(ii); or "(ii) section 8()(b)(ii) of the Social Welfare (Transitional Provisions) Act 990 (as in force immediately before the commencement of this Part); and New (unanimous) "(c) has not attained the age at which he or she would be 5 entitled to receive New Zealand superannuation if otherwise qualified to receive it. -(2) A person to whom this section applies will not cease to be entitled to receive a veteran' s pension merely because that person, at any time, is no longer prevented from undertaking 20 employment because of a mental or physical infirmity. -(3) This section applies despite section 70()(b)(ii), but is subject to section 74D. "72 Medical examination of applicant for veteran's pension "( ) The Secretary, in his or her discretion, may require any appli- 25 cant for a veteran' s pension or any person in receipt of a veteran's pension to submit himself or herself to a medical practitioner nominated by the Secretary for the purpose of a medical examination. 8

19 War Pensions Amendment (No 2) Part I cl 5 "(2) -(3) The medical practitioner must certify- "(a) whether, in his or her opinion, the applicant or person in receipt of a veteran' s pension is prevented from undertaking employment as a result of a mental or physical infirmity; and 5 "(b) the estimated duration of that condition. The medical practitioner must state the grounds upon which his or her opinion is founded. Compare: 990 No 26 s 9 73 "() -(2) "(3) Commencement of veteran's pension 0 A veteran' s pension commences on the later of- "(a) the date on which the applicant became entitled to receive it; or "(b) the date on which the Department received the application for it. 5 Despite subsection (), a person' s application for a veteran' s pension is deemed to have been received on April 990 if- -(a) the person applied or applies for the veteran's pension after 6 March 995; and '(b) the service qualifying that person for a veteran's pen- 20 sion under section 70()(a) was solely with the Japan section of the Second New Zealand Expeditionary Force on or after 4 August 945 and before 28 April 952. Nothing in subsection (2) limits section 70(3). 25 Compare: 990 No 26 s 0 "74 "() "(2) Rates of veteran's pensions The rate of a veterans pension is the appropriate rate specified in Schedule. A married person whose spouse is not entitled to receive a 30 veteran' s pension may elect to receive the appropriate rate specified in either clause or clause 2 of that schedule. However, an election to receive a veteran' s pension under clause 2 0 Schedule does not take effect until the employment has ceased if- 35 -(a) that married person's spouse is or was in employment under a contract of service; and 9

20 Part cl 5 War Pensions Amendment (No 2) -(b) the combined income of the married person and his or her spouse, during that employment, is or was enough to prevent receipt of a veteran' s pension under clause 2 of that schedule. "(4) A person who has made an election under subsection (2) may 5 change that election. Compare: 990 No 26 s "74A Lump sum payments on death On the death of any person who is ordinarily resident in New Zealand on the date of death and who is in receipt of a 0 veteran' s pension on that date, or on the death of the spouse of that person, the appropriate amount specified in Schedule 2 is payable to the surviving spouse or dependent child of the person who died. Compare: 990 No 26 s Persons formerly receiving certain pensions or allowance entitled to veteran's pension "( ) Despite section 70(), every person who, immediately before April 990, was entitled to receive an economic pension or a wife' s pension or a war veteran's allowance or a war service 20 pension is entitled to receive a veteran' s pension under this Part. "(2) Subclause () is subject to section 70(3). Compare: 990 No 26 s 3 "74C Annual adjustment of rates of veterans' pensions 25 '() In this section,- "CPI means the consumers price index-all groups published by Statistics New Zealand "earner levy means the levy payable under section 29( ) and (2) of the Injury Prevention, Rehabilitation, and Compen- 30 sation Act 200 "standard tax means the amount of tax reckoned on a weekly basis that would be deductible in accordance with tax code 'M' specified in section NC 8 of the Income Tax Act 994. "(2) Subject to subsection (3), the rates of veterans' pensions speci- 35 fied in clauses and 2(b) of Schedule must be adjusted, by Order in Council, as at April each year so that in each case 0

21 War Pensions Amendment (No 2) Part cl 5 the new rate (after the deduction of standard tax) is the rate at that date (after the deduction of standard tax and before the adjustment under this section is made) adjusted by any percentage movement upwards in the CPI between the CPI for the quarter that ended with 3 December one year before the 5 immediately preceding 3 December and the CPI for the quarter that ended with the immediately preceding 3 December. -(3) Subject to subsection (4), every Order in Council made under subsection (2) must adjust the annual rates of the veterans' 0 pensions- "(a) so that the weekly amount (after the deduction of standard tax) payable to a married couple who are both qualified to receive a veteran' s pension is not less than 60% or more than 72.5% of the average ordinary time 5 weekly earnings (males and females combined) as determined by the last Quarterly Employment Survey of wages published by Statistics New Zealand before March in each year (after the deduction of standard tax and the earner levy payable on those earnings): 20 '(b) so that the weekly amount (after the deduction of standard tax) payable to a single person who has been granted a living alone payment is 65% of the weekly amount of the veteran' s pension (after the deduction of standard tax) payable to a married couple who are both 25 qualified to receive a veteran's pension: "(c) so that the weekly amount (after the deduction of standard tax) payable to a single person who has not been granted a living alone payment is 60% of the weekly amount of the veteran' s pension (after the deduction of 30 standard tax) payable to a married couple who are both qualified to receive a veteran' s pension: "(d) so that the rate of the veteran's pension specified in clause 2(b) of Schedule preserves its proportional relationship (after the deduction of standard tax) to the rates 35 specified in clause of that schedule. " (4) An adjustment under this section must not reduce the weekly amounts payable under this section. "(5) Section 6 H(3 ) to (6) of the Social Security Act 964 applies to every Order in Council made under subsection (2) as if that 40 Order in Council were made under that section.

22 Part I cl 5 War Pensions Amendment (No 2) "(6) Every Order in Council made under subsection (2) comes into force, or is to be deemed to come into force, on April of the calendar year in which it is made, and applies to veterans' pensions payable on and after that date. Compare: 990 No 26 s 3A 5 "74D Abatement "() This section applies to any person in receipt of a veteran' s pension who has not attained the age at which he or she would be entitled to receive New Zealand superannuation if otherwise lentitled) qualified to receive it. 0 "(2) Income Test 3 does not apply to any person to whom this section applies. -(3) If a person to whom this section applies receives a veteran's pension at a rate specified in clause of Schedule, the Department must, in calculating the veteran's pension payable, 5 reduce the amount of the pension paid and payable by- "(a) 30 cents for every $ of the employment income derived by the person (before the deduction of income tax) in excess of $80 per week, but not in excess of $80 per week; and 20 -(b) 70 cents for every $ of the employment income derived by the person (before the deduction of income tax) in excess of $80 per week. -(4) If a person to whom this section applies receives a veteran' s pension at a rate specified in clause 2 of Schedule, the Depart- 25 ment must, in calculating the veteran' s pension payable, reduce the amount of the pension paid and payable by- "(a) 30 cents for every $ of the combined income derived by the person and the person s spouse in excess of $80 per week, but not in excess of $80 per week; and 30 "(b) 70 cents for every $ of the combined income derived by the person and the person' s spouse in excess of $80 per week. Payment overseas of veterans' pensions "74E Effect of absence from New Zealand on veteran's 35 pension A person is not entitled to a veteran's pension while that person is absent from New Zealand, except as provided in 2

23 War Pensions Amendment (No 2) Part cl 5 sections 74F to 74M or section 74T or in any agreement or convention adopted under section 9 of the Social Welfare (Transitional Provisions) Act 990. Compare: 990 No 26 s 7A() "74F First 26 weeks of certain temporary absences 5 A veteran's pension that would otherwise be payable to a person is payable in respect of the first 26 weeks of any absence from New Zealand if- "(a) the person's absence does not exceed 30 weeks; or "(b) the person's absence exceeds 30 weeks and the Secre- 0 tary is satisfied that the absence beyond 30 weeks is due to circumstances beyond that person's control that he or she could not reasonably have foreseen before departure. Compare: 990 No 26 s 7A(2) 5 '746 Absences up to 2 years for medical treatment The Secretary may, in the Secretary's discretion, pay a veteran's pension to any person who would otherwise be entitled to receive it, but who is absent from New Zealand for any period or periods not exceeding 2 years in total because that 20 person or his or her spouse, dependent child, or sibling is receiving medical treatment overseas for which the Ministry of Health is granting assistance. Compare: 990 No 26 s 7A(3) "74H Absences up to 52 weeks with aid agencies 25 "() The Secretary may pay a veteran' s pension to any person who "(a) is otherwise entitled to receive it; and "(b) is absent from New Zealand for a period not exceeding 52 weeks; and 30 "(c) is engaged, while absent from New Zealand, in fulltime voluntary and unpaid humanitarian work for a recognised aid agency that- "(i) has, as its principal function, the giving of aid and assistance to less advantaged communities in or 35 more other countries; and 3

24 Part I cl 5 War Pensions Amendment (No 2) "(ii) has not deprived another person of paid employment to engage the person to do that work on an unpaid basis. "(2) The chief executive of the Ministry of Foreign Affairs and Trade must determine any question that arises as to whether 5 an aid agency fulfils the qualifications set out in subsection (). Compare: 990 No 26 s 7AOA).(38) "74 Date absence commences If a person who is absent from New Zealand would have become entitled to a veteran' s pension during his or her 0 absence but for section 74E, the person's absence must be regarded as having commenced on the day that he or she would have become entitled to a veteran's pension. Compare: 990 No 26 s 7A(4) "74 Payment overseas of veteran's pension 5 -( ) A person who is entitled to receive a veteran's pension and who leaves New Zealand to reside in a country with which New Zealand has no agreement relating to the portability of veterans' pensions is entitled, while residing in that country, to be paid 50% of the gross rate of veteran' s pension (exclud- 20 ing any living alone payment) that he or she would be entitled to receive if he or she resided in New Zealand. "(2) However, if a married person whose spouse is not entitled to receive a veteran's pension has made, or is entitled to make, an election under section 74(2), that married person is only 25 entitled to be paid, under this section, 50% of the gross rate payable under clause (c) of Schedule. New (unanimous) "(2A) The amount of the gross rate must, before the 50% calculation is made, be abated under section 74[ if that section applies to the person. 30 -(3) A person is not entitled to receive payment overseas under this section unless,- "(a) on the date of application for the payment, he or she is ordinarily resident and present in New Zealand and is, 4

25 War Pensions Amendment (No 2) Part cl 5 on that date, entitled to receive a veterans pension or will be so entitled before leaving New Zealand; and -(b) the applicant intends to reside for more than 26 weeks in the overseas country to which the application relates, being a country with which New Zealand has no agree- 5 ment relating to the portability of veterans' pensions. "(4) Subsection () applies despite sections 74(a) and 77 of the Social Security Act 964, but subject to the provisions of this section and of sections 74K to 745. Compare: 990 No 26 s 7(), (2) 0 "74K Applications after leaving New Zealand "() This section applies if a person did not make an application for payment under section 74J while ordinarily resident and present in New Zealand because he or she left New Zealand intending to be absent for 26 weeks or less. 5 -(2) The Secretary may accept an application for payment in accordance with section 74 if satisfied that the absence for more than 26 weeks is or was due to circumstances beyond the applicant's control that could not reasonably have been foreseen before leaving New Zealand. 20 "(3) If the Secretary has accepted an application under subsection (2) and, after the applicant left New Zealand, the applicant has been paid any instalment of a veteran's pension in accordance with sections 74F to 74, no liability to repay any of those instalments arises merely because the applicant fails to return 25 to New Zealand within the period allowed for by those sections. Compare: 990 No 26 s 7(3). (5) "74L Date of commencement of payment overseas "() The date of commencement of payment overseas of a vet- 30 eran' s pension under section 7U is the first pay day after the date of the applicant's departure from New Zealand. " (2) However, in the case of an application under section 74K, the date of commencement is the first pay day after the date on which the application was received by the Department. 35 Compare: 990 No 26 s 7(4) I5

26 Part cl 5 War Pensions Amendment (No 2) "74M Relationship with other benefit provisions -() If a veteran's pension is payable overseas in accordance with section 74 and is directly reduced under section 70 of the Social Security Act 964, the amount payable is 50% of the reduced gross rate that would be payable in New Zealand. 5 New (unanimous) "(l A) The amount of the reduced gross rate must, before the 50% calculation is made, be abated under section 74D if that section applies to the person.»(2) A person who is receiving a veteran' s pension overseas under section 74J is not entitled to receive any supplementary or 0 special benefit, lump sum payment, or any other assistance under the Social Security Act 964 or under any welfare programme approved under section 24( )(d) of that Act. "(3) Despite the provisions of section 80 of the Social Security Act 964, on the death of a person who receives a veteran' s 5 pension overseas under section 74, the benefit terminates on a date to be determined by the Secretary, being a date not more than 4 weeks after the date of death. "(4) Except as otherwise provided in this section, the provisions of the Social Security Act 964 (other than sections 75,75A, and 20 76) apply to veterans' pensions being paid overseas under section 74J. Compare: 990 No 26 s 7(6)-(9) 743 Specified Pacific country "( ) In sections 740 to 745, specified Pacific country means a coun- 25 try or territory- -(a) that is listed in Schedule 3; and "(b) that is not a country with which New Zealand has a reciprocal agreement in force under section 9 of the Social Welfare (Transitional Provisions) Act relating to the portability of the veteran's pension. "(2) The Governor-General may, by Order in Council, amend Schedule 3 by- "(a) adding the name of any Pacific country or territory; or "(b) omitting the former name of a country or territory and 35 substituting its new name. 6

27 War Pensions Amendment (No 2) Part cl 5 "(3) The Order in Council must state the date on which it takes effect, which may be a date before the date on which it is made. "(4) The Order in Council applies to payments of the veteran' s pension under section 740 payable on or after the date on which 5 the order takes effect. "(5) Section 6 H(3) to (6) of the Social Security Act 964 applies to every Order in Council made under subsection (2)(a) as if it had been made under that section. Compare: 990 No 26 s 7B 0 "740 Entitlement to be paid veteran's pension in specified Pacific country "() A person entitled to receive a veteran's pension is entitled to be paid the benefit in a specified Pacific country at a rate calculated under section 74P if subsection (2) or subsection (3) 5 applies to the person. "(2) This subsection applies to a person- "(a) who intends to leave New Zealand to reside for more than 52 weeks in a specified Pacific country; and '(b) who is resident and present in New Zealand on the date 20 of his or her application to be paid a veteran' s pension in a specified Pacific country; and -(c) who- "(i) is entitled to receive a veteran' s pension on the date of the application; or 25 "(ii) will be entitled to receive a veteran' s pension before leaving New Zealand; and -(d) who is resident in a specified Pacific country when each payment of veteran's pension is due to be made to him orher. 30 "(3) This subsection applies to a person- "(a) who was, immediately before this section came into force, being paid a veteran' s pension while resident in a specified Pacific country under section 7BA of the Social Welfare (Transitional Provisions) Act 990 as it 35 was immediately before that date; and "(b) who is resident in a specified Pacific country when each payment of the veteran's pension is due to be made to him or her. Compare: 990 No 26 s 7BA 40 7