Bill passes to make Superannuation fairer

The passing of the third reading of a bill to increase the residency requirement for Superannuation from 10 years to 20 years will make the system fairer, says National’s Shadow Treasurer Andrew Bayly.

“This is the second of my members bills to be passed, a rarity in opposition.

“The New Zealand Superannuation and Retirement Income (Fair Residency) Amendment Bill passed with the support of the Government as well as the Act Party, which I appreciate.

“This Bill presents a small but necessary change to how long it takes for an immigrant to become eligible for Superannuation in New Zealand, shifting from a globally low 10 years, up to 20 years.

“The change will happen over a smooth transition period, with the time requirement increasing gradually over the course of 10 years. The majority of immigrants who are already residents will not be affected by these changes. Those who are will have plenty of time to prepare, due to the delayed commencement of the Bill.

“We have made carve-outs for refugees, who may not choose when they come into the country, and also allowed time worked in the Cook Islands, Niue, and Tokelau to count toward the requirement.

“We hope that these changes make the system fairer, while not causing any financial stress to those who have already prepared for their retirement.”