Tens of thousands overpaid on their superannuation, pensions

Tuesday, 31 October 2017

NZ First leader and Deputy Prime Minister Winston Peters speaks to media during the 2017 election campaign.

Deputy Prime Minister Winston Peters is not the only person to have been overpaid on their superannuation.

A total of 52,525 overpayments above what people eligible for on their superannuation or veteran's pension were made in the year to June 30, 2017, new figures show.

In August, it was revealed Peters had received higher superannuation payments than he was entitled to for seven years. He was required to pay back $18,000.

The Ministry of Social Development (MSD) figures show that over the past five years, the number of people being overpaid had increased from 35,101 to more than 50,000.

* Winston Peters calls for heads to roll over superannuation

* Peters denies claims he was receiving a single person's pension**

MSD did not release the total cost of the overpayments.

The maximum value overpaid in the year to June 30 was $207,139 and the average value of the overpayments in the 2017 year was $625.

There were about 700,000 pensioners in New Zealand, according to MSD.

MSD group general manager of client service support, Dwina Dickinson, said: 'It is absolutely wrong to say that 52,000 overpayments represent any issue with the pensions system any more than the number of tax refunds represent an issue with the tax system.'

The ministry worked to ensure ensure pensioners received everything to which they were entitled, Dickinson said.

Each pensioner had a different set of circumstances, she said.

'When a person's circumstances change, we often need to review their New Zealand Superannuation entitlement. Sometimes these reviews result in an overpayment.

'As an example, if a person was single and then began living with someone, the married rate that they would then be entitled to would be less than the single rate. If there is a delay in advising of the change an overpayment might arise.'

Other situations where an overpayment could arise was when a superannuitant was absent from New Zealand for more than 26 weeks, she said.

Up to 26 weeks was allowable, but any longer and overpayment could occur.

Some superannuitants qualified for extra payments such as a disability allowance or an accommodation supplement.

The amount depended on the person's income or assets and delays in advising changes in their situation could also lead to overpayments.

'All of these things can have an effect so it is important for superannuitants to be aware of the need to advise of changes that might affect their entitlement,' Dickinson said.

MSD had not responded to further questions at the time of publication.