ACC law change will help superannuitants after spouse’s death

ACC Minister Nikki Kaye has confirmed that Cabinet has signed off a law change that will help some superannuitants better cope with the accidental death of their spouse or partner.

“Under the current law, ACC weekly compensation paid to the spouse of someone who is fatally injured is generally available for five years,” says Ms Kaye.

“However, a clause in ACC’s governing Act requires superannuitants, after receiving both NZ Super and weekly compensation for a year, to choose between receiving either NZ Super or weekly compensation.

“Several months ago, a case went to the Human Rights Tribunal on this issue. This led to me reviewing the current policy.

“The law will be changed at the next legislative opportunity to allow superannuitants to receive both NZ Super and surviving spouse weekly compensation on the same basis as other surviving spouses.

“It’s estimated that this change will assist around 50 people a year. The estimated cost for ACC will be around $600,000 in the first year, rising to around $1.3 million after three years. The effect on levies will be negligible, with any impact absorbed by current levy rates.

“The estimated cost for NZ Super is estimated to be around $750,000 per year.

“The principle behind this change is that weekly compensation paid to a surviving spouse is to allow a person who has suffered the sudden and tragic loss of their partner time to adjust to the loss of their partner’s earnings.

“The impact of this loss is not necessarily lessened simply because someone is receiving NZ Super.

“Losing a loved one in an accident is a difficult time for spouses and family members. This change is about ensuring people are less worried about reduced income during this difficult time.

“The change will help lessen the impact for the small number of people who find themselves in this situation each year.”

Notes

What is ACC weekly compensation?

ACC weekly compensation is paid when someone is unable to work because of injury. It is paid as a percentage of the pre-injury earnings.

Who will this change apply to?

This change will apply to superannuitants whose spouse/partner was working at the time of their accidental death, and receiving earnings which qualify for the payment of ACC weekly compensation.