‘No income drop’ tag to super, bill

Press, 11 December 1989, Page 2

‘No income drop’ tag to super, bill

Wellington reporter Reforms to bring the Government Superannuation Fund into line with the new tax regime for pension funds was introduced to Parliament on Saturday by the Associate Minister ;of Finance, Mr Neilson. The . bill comes with an assurance that no New Zealand resident pensioner would be

worse off as a result of the changes. It sets out the formula by which pension pay-outs will be reduced to reflect their being paid tax-free from April 1, 1990. It also details the way in which pensions will be able to be capitalised in future to take account of the reduced payments without disadvantaging Govern-

ment Superannuation Fund (G.S.F.) pensioners. Mr Neilson said the position of overseas resident G.S.F. pensioners was still being considered. “At present they are paid gross pensions by the G.S.F., pay tax in their land of residence and would have their, pensions reduced by the bill. “It may be argued that they are living overseas of their own

volition, but officials are discussing alternative approaches and the Government may seek to have their position reconsidered in the select committee,” he said. Pensioners would first see'the changed rates on the pay day of April 26, 1990. All pensioners would receive individual advice notices before then, Mr Neilson said.