By Losirene Lacanivalu, Cook Islands News
Minister for Foreign Affairs and Immigration Tingika Elikana was in Sydney this week to sign the agreement with Australia’s assistant minister Financial Services Stephen Jones. Photo: Supplied / Australian High Commission, Cook Islands
Cook Islands government has signed a superannuation agreement with Australia allowing returning Cook Islanders to retire and transfer their superannuation savings easily to the Cook Islands National Superannuation Fund.
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Minister for Foreign Affairs and Immigration Tingika Elikana was in Sydney last week to sign the agreement with Australia's assistant minister Financial Services Stephen Jones.
The memorandum of understanding (MOU) allows portability of retirement savings between our two countries.
Jones said this will benefit Cook Islanders who return home to retire, and Australians who have periods of work in the Cook Islands.
"This arrangement addresses a gap in the existing Trans‑Tasman Retirement Savings Portability scheme that prevented Cook Islands citizens from sending Australian‑earned superannuation to their home country, while also being unable to release accumulated superannuation under the departing Australia superannuation payment (DASP).
"The scheme will allow those who move to the Cook Islands permanently to transfer their superannuation to the Cook Islands National Superannuation Fund."
He said that workers with accumulated retirement savings in the Cook Islands will be able to move their savings to Australia upon permanent migration.
The MOU delivers on Australia's commitment made in the Cook Islands - Australia 'Oa Tumanava partnership agreement, to explore reciprocal superannuation portability arrangements, strengthening connections between peoples.
The scheme will commence following implementation of the necessary law changes and agreement by each country.