A man now faces charges of making threats and will appear in court in the coming weeks.
A Ministry of Social Development spokeswoman said she was unable to comment any further as the Rotorua matter was now being dealt with by police.
"We take threats to our staff very seriously. As the incident will now be subject to a police investigation, we are unable to comment any further," she said.
The incident comes within a week of a similar one at Work and Income in Turangi.
On Christmas Eve, police were called to the office on Ohuanga Rd in Turangi about 4pm after a man allegedly made threats to staff.
He had earlier been removed from the office by security.