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Social Security Act 2018

Factors affecting benefits - Factors affecting benefits - Factors reducing benefits: compensation or damages

198: Loss of earnings compensation under Accident Compensation Act 2001

You could also call this:

“Money from benefits might be reduced if you also get payments for lost earnings due to an accident”

If you get money from certain benefits and you or your partner also get weekly payments for lost earnings because of an accident, the amount you receive from your benefit might be reduced.

This applies if you get a main benefit, an orphan’s benefit, an unsupported child’s benefit, or a veteran’s pension that can be reduced. It also applies if you, your partner, or your dependent child get weekly payments for lost earnings.

The government will lower the amount of your benefit by the same amount as the weekly accident payments you or your partner receive. This helps make sure you’re not getting paid twice for the same thing.

The weekly accident payments are called “weekly loss of earnings compensation”. These are payments you might get if you can’t work because of an accident.

Remember, there are some cases where your benefit might not be reduced, but these are special situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783521.

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197: Effect of compensation or damages on application for benefit, or

“How getting money for an injury or unfair dismissal affects your benefit application”

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199: Veteran’s entitlement excludes any other benefit, or

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Part 4 Factors affecting benefits
Factors affecting benefits: Factors reducing benefits: compensation or damages

198Loss of earnings compensation under Accident Compensation Act 2001

  1. This section applies if—

  2. a person (P) is entitled to a specified benefit as defined in subsection (3); and
    1. either of the following persons is entitled to receive or receives weekly loss of earnings compensation:
      1. P, on P’s own account or in respect of P’s spouse or partner or of P’s dependent child:
        1. P’s spouse or partner.

        2. MSD must reduce the rate of the specified benefit payable to P by the amount of weekly loss of earnings compensation received by P or P’s spouse or partner (unless this subsection does not apply because of the exception in clause 31 of Schedule 1).

        3. In this section,—

          specified benefit means a main benefit under this Act, an orphan’s benefit, an unsupported child’s benefit, and a veteran’s pension subject to abatement under section 171 of the Veterans’ Support Act 2014

            weekly loss of earnings compensation means weekly compensation for loss of earnings or loss of potential earning capacity payable to a person under the Accident Compensation Act 2001.

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