Kotare

Hi

I currently receive my UK govt pension into a UK account and transfer it using Transferwise/xetrade as needed (and when I am feeling lucky with the exchange rate).

I am considering getting it paid directly to my NZ account but ASB suggest a $15 fee.
I suspect this is a comms glitch as I have never been charged in the past.

Anyone else get their pension paid direct? If so, any fees and what kind of exchange rate do you get eg mid market or?

MrsFychan

hope this helps:

If you receive your overseas pension payments straight into
your bank account, you must arrange to pay New� Zealand
income tax on the payments. You do this by completing an
Individual tax return (IR 3) at the end of each tax year—see
page 10 for details.
8 OVERSEAS SOCIAL SECURITY PENSIONS
Special banking option
Some overseas social security pensions can be paid through
Work and Income using the special banking option. Under
this option your overseas pension is deposited into a special
Westpac bank account. Work and Income withdraws the
funds and pays you an equivalent amount of NZ Super,
veteran’s pension or income-tested benefit.
Work and Income deducts New� Zealand income tax from the
payment before you receive it so you don’t need to arrange this
yourself. However, you may be sent a personal tax summary
at the end of each tax year—see page 13 for details.
If you also receive direct payments of holiday pay and/or a
voluntary component, you must arrange to pay New� Zealand
income tax on them.
For more information about the special banking option,
please contact your nearest Work and Income service centre
or call them on 0800 777 227.
Who can use the special banking option
United Kingdom
The special banking option is available to you if you receive
pension payments from the UK Department of Work and
Pensions.

taken from http://www.ird.govt.nz/resources/4/3...b077/ir258.pdf

Kotare

I am sure all that will be useful to imminent migrants. I am interested in bank charges and the exchange rate they use for payments :-)

MrsFychan

the special banking option I thought might of been useful

Kotare

That applies when you switch from a UK State pension to NZ Super, basically they take the UK one and give you the higher NZ Super - did that last year. :-).

I am referring to UK govt pensions (military, teaching etc which they will pay directly to an NZ account.

simonsi

Thats just an international transfer then as far as the banking systems see it? I get a $20 incoming fee charged by Westpac and the exchange rate is set at the time, no choice on my part. You could have the option of having it transferred into a sterling account in NZ then exchange in amounts and at times of your choosing.

Kotare

You need to change banks, ASB have never charged me a fee with transfers using Transferwise or Xetrade (which is why I was surprised).

I want to know what rate Capita (Govt paymaster) use ie mid market or a lower rate like an fx dealer/bank. So I need someone who is actually doing it - must be someone out there in their 60's :-)

LoCarb

My son takes cash out of a money-machine as required.
He finds it cheaper than a bank transfer (not for pension, overseas income).

simonsi

Lol - ASB are crap in other ways and my life isn't dominated by those charges.

I'm still thinking Capita will put a sterling amount into the banking system and the banking system will choose the rate as they do for normal transfers. Might be quicker/more definite to ask them though.