Pension rise limited to the life of this Government

The superannuation increase agreed between Labour and NZ First is limited to the next three years, but Grey Power wants both parties to permanently enshrine it in law.

The deal that helped Labour to form a Government included a move to boost the standard couple's rate from 65 to 66 per cent of the average weekly wage from next April 1. The Treasury calculates it would mean about $4 more weekly for most superannuitants.

A spokeswoman for Finance Minister Michael Cullen confirmed that the rate change would last only for the life of this Government.

The legislation governing superannuation specifies a 65 to 72.5 per cent band within which payments can be made. Because the rate is being changed - not the band- no law change is planned.

But Grey Power national president Graham Stairmand said yesterday that he would ask for the 66 per cent floor to be made permanent when he met Dr Cullen and NZ First early in the new year.

"We will talk to both of them about it. What success we will have, no one can anticipate."

Mr Stairmand said he had already known the deal between Labour and NZ First changed the rate, not the band, but that was the "way of politics" unless Grey Power could persuade NZ First to push for legislation.

The Herald wanted to question Dr Cullen on why the rate was changed, not the band. His spokeswoman explained that the change could be achieved within the existing legislation.

NZ First leader Winston Peters said that with more MPs he could have done more about super.

Super rate change

* The Labour-NZ First deal was to lift superannuation from 65 to 66 per cent of the average weekly wage from next April 1.

* The Superannuation Act sets the band for the couple's rate at 65 to 72.5 per cent of the average wage. The Government says it will alter the rate, but not the band, with the increase to apply just for this term.

* Grey Power wants the increased rate included in the act.