Married superannuitants are to receive the largest single dollar increase in the rate of the state pension, with a rise of $21.42 per week from April 1.
The move makes good promises by the Labour and Alliance parties to restore the threshold for New Zealand Superannuation payments to 65 per cent of the average, ordinary time weekly wage and was announced Thursday by Finance Minister Michael Cullen, Social Services Minister Steve Maharey, and Deputy Prime Minister and Alliance leader Jim Anderton.
The new rates equate to 67 per cent of the average, ordinary time wage, reflecting changes to Statistics New Zealand's Quarterly Employment Survey, which produced lower average wage figures than the previous index.
"The Cabinet felt that to have calculated the new pension rates on this lower figure would have been unfair given the unreasonable expectations created in the electorate," said Cullen.
The pension rate would now be allowed to drop back to the 65 per cent threshold, with adjustment only for inflation in the meantime.
The threshold was dropped to 60 per cent in 1993 and had fallen to 62.66 per cent on the rebased QES wage index.
The new weekly rates for married, single, and single shared person pensions will be $347 ($21.42 increase), $225.55 ($12.86 increase), and $208.20 ($12.36 increase) respectively.
Cullen indicated later that abolition of the Superannuation Taskforce is also imminent, although agreement has yet to be reached with the Alliance over the future funding of NZ Super. Labour's dedicated fund concept has not found favour with the Alliance, but neither Cullen nor Anderton would elaborate on the progress of talks.
The broad framework for the future of the scheme is expected in the Budget Policy Statement, due by the end of March.
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