3.7.3 Fulfilment of Obligation to Take Reasonable Action

Last amended: 3 August 2010

Eligibility for comparable foreign pension rejected

A person is considered to have taken reasonable action to claim a comparable foreign pension:

• if their claim for pension has been considered by the relevant overseas authorities, and
• they have been determined to be ineligible.

Eligibility for foreign pension confirmed

A person is considered to have taken reasonable action to claim a comparable foreign pension:

• if their claim for pension has been considered by the relevant overseas authorities, and
• they have been granted pension at the highest rate applicable to the person's circumstances.

Failure to pursue highest rate

A person is not considered to have taken reasonable action to claim a comparable foreign pension if they have taken action to obtain that pension but have not sought to obtain the highest rate applicable to their circumstances.

Failure to accept foreign pension

If a person has taken action to claim a comparable foreign pension, but does not accept the payment of that pension, the person may be considered to have deprived themselves of an income.    

Foreign pension 'blocked'

Foreign pensions from some countries may previously have been considered 'blocked' due to severe limitations placed on payment by the paying country. For example, the paying country may restrict payment to residents or to people who are physically present in the paying country.

This 'blocked' status does not apply where the person travels to or resides in the paying country. Where the person travels to or resides in the paying country, they and their partner are required to take action to claim the comparable foreign pension in order to fulfil their obligation to take reasonable action.