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C07/1996 INTERIM PROCEDURES RELATING TO CLIENTS TRANSFERRING FROM SOCIAL SECURIY PENSIONS TO THE SERVICE PENSION
DATE OF ISSUE: 24 JANUARY 1996
INTERIM PROCEDURES RELATING TO CLIENTS TRANSFERRING FROM SOCIAL SECURIY PENSIONS TO THE SERVICE PENSION
The purpose of this instruction is to provide interim procedural guidelines to be followed when transferring pensioner from a Social Security (DSS) pension to a Veterans' Affairs service pension.
2.From 30 March 1995 the rate of service pension payable to widowed and non-illness separated partners was increased from the partnered (married) to the standard (single) rate. From the same date a new income support payment, called income support supplement (ISS), became payable to eligible war widow(er)s.
3.As a result of these initiatives it was expected that a large number of clients would transfer from DSS to Veterans' Affairs. Rules were therefore introduced to limit to a half payment the first pension instalment received after the transfer from Social Security.
Half Pay Rules
4.Because Veterans' Affairs and DSS use separate and alternate Thursdays as their pension paydays, the new half pay rules were introduced to prevent dual payment of income support pension to clients transferring to Veterans' Affairs from DSS.
5.The half pay rule only applies to cases where the person is transferring across from a DSS pension. It does not apply to those transferring from a DSS allowance.
6.A new classification type, DSS Transfer In (32), was set up on the CM.CP screen in the Claims Management System. This classification is intended to generate a half pay for the client, and special paragraphs in the payment automatic advice.
7.Departmental Instruction B29/95 paragraphs 34 to 37 refer, in respect of half pay for those pensioners transferring over to receive service pension.
8.Although the half pay is successfully generated by the new classification, a system error has been identified on cases where the person who transfers across from DSS is the partner of a veteran receiving service pension (ie. the two clients share the same Veterans' Affairs file number).
9.The system is currently generating a half pay for both the veteran and partner, even though the veteran is already in receipt of a service pension.
10.The error has been noted and is scheduled for correction as part of the PIPS/PC project.
11.Until the error has been corrected, States should take note of cases involving partnered clients where one partner is already receiving a service pension and the other partner is applying to transfer across from DSS to the partner service pension. This type of case should be registered on the CMS as a New Claim Dependant (type 06).
12.The first half pay will have to be entered manually on the arrears screen (PP.AR).
13.The use of the New Claim Dependant classification also means that the automatic advice issued to this group of clients as a result of the service pension grant will not contain information about the half pay. This may generate inquiries from clients. The inclusion of a flier explaining the half pay rule may possibly lessen the number of enquiries that could arise. States may therefore choose whether or not to enclose such a flier with the advice letter (suggested wording for the flier is attached; the wording is based on the existing paragraphs used in automatic advices).
14.Please note that the half pay provisions only relate to basic service pension/ISS and any non-child related rent assistance. All other allowances are paid at the full amount from the first regular payday.
15.Should you have any queries about any aspect of this Departmental Instruction please contact Project Manager (PD&I), Oona O'Beirne, on telephone number (02) 213 7771 or Project Officer, Gabrel Smith on (02) 2137107.
Suggested wording of flier:
Your first payment of service pension for the payday (date) is a half payment of $(amount).
Social Security made their last payment to you on (DSS payday), which was for the two weeks ending (date). The half payment you will receive for the payday (date) is one week of service pension. This is NOT a bonus. It is the pension payment for the week (date) to (date).
This one week payment will include full payment of Pharmaceutical Allowance and any Remote Area Allowance or child related payments if applicable.
On (payday) you will receive your usual fortnightly amount of pension. From then on regular payments will be made each fortnight.
Any disability pension you receive will not be affected by the above half pay, but will be paid in full on all paydays.
Your first payment of service pension for the payday 20 July 1995 will be a half payment of $136.00.
Social Security made their last payment to you on 13 July 1995, which was for the two weeks ending 26 July 1995. The half payment you will receive for the payday 20 July 1995 is one week of service pension. This is not a bonus. It is the pension payment for the week 27 July 1995 to 2 August 1995.
This one week payment will include full payment of Pharmaceutical Allowance and any Remote Area Allowance or child related payment is applicable.
On 3 August 1995 you will receive your usual fortnightly amount of pension. From then on regular payments will be made each fortnight.
Any disability pension you receive will not be affected by the above half pay, but will be paid in full on all paydays.)