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C03/2010 March 2010 Global Refresh of Managed Investments and Shares Letter Production and Mailout

Document

DATE OF ISSUE:  8 MARCH 2010

March 2010 Global Refresh of Managed Investments and Shares Letter Production and Mailout

Amends DI No.

N/A

Replaces DI No.

N/A

Purpose of Instruction

This Departmental Instruction provides information regarding the production and mailout of the advice letter for the March 2010 Global Refresh of Managed Investments and Shares.

John Sadeik

National Manager

Income Support

8 March 2010

Overview

Introduction

Each quarter the Department varies pensions and allowances in accordance with provisions contained in the Veterans' Entitlements Act 1986 (Statutory Increase or 'SI').  In the case of the March and September Statutory Increase, Income Support pensions are indexed and the Global Refresh of Managed Investments (MIs) and Shares (SHs) data are conducted.

Letters are usually only sent to those pensioners receiving less than the maximum rate of income support pension who have managed investments (MIs) and/or shares (SHs) recorded in their assessment.

However, on this occasion since deemed interest rates are also changing it is necessary for the Department to write to all income support pensioners receiving less than the maximum rate of income support pension.

Advice letters will also be sent to DVA Age Pensioners who are eligible to commence payment of Defence Force Income Support Allowance (DFISA) or whose DFISA payment is cancelled following the processing run.

Significant Issues –
Managed Investment and Share Global Refresh Mailout

The March 2010 Global Refresh mailout will incorporate the following events for payday 25 March 2010 (with effect from 20 March 2010).  Issues of significance with regard to this mailout are as follows:

  • Letters will be sent to all less than maximum rate income support recipients;
  • There will be a deeming interest rate change from 2% to 3% for amounts up to and including $42,000 ($70,000 per couple) and from 3% to 4.5% for amounts over $42,000 ($70,000 per couple);
  • A 'SH and MI Information Attachment' will be provided for all income support recipients with MIs and/or SHs in their assessment.  This Information Attachment will provide a complete listing of the client's MIs and/or SHs regardless of which investments have been reassessed;
  • The General Information Sheet (GIS) will only be generated for clients whose income support payment is reduced to nil;
  • DVA Age Pension (AP) clients who commence payment of DFISA, or whose DFISA payment is cancelled will receive an advice letter regardless of whether they have MIs and/or SHs in their assessment;
  • A letter will be produced for all clients with MIs and/or SHs recorded in their assessment and whose payment of Rent Assistance (RA) has varied as a result of the reassessment, including clients whose income support pension has not been varied or is paid at the nil rate; and
  • If a treatment change occurs as a result of the reassessment a letter will be produced.

Significant Issues –
Foreign Pension Refresh (GROOVER)
  • The foreign pension refresh program referred to as 'GROOVER' (Global Refresh Of Overseas Exchange Rates) is a separate processing exercise to the March 2010 Global Refresh processing.

The March 2010 Global GROOVER advice letters will be printed at the nominated printer at each state location.  These letters should be checked for accuracy, reconciled against the reports received in each location and held pending notification that the March 2010 quarterly letters have been dispatched.  This will ensure the pensioners receive their advice letters in chronological order.

Letter Content – March 2010 Global Refresh of MIs and/or SHs Mailout

Advice Letter Target Audience – March Global Refresh of MIs and/or SHs

A letter will be produced for the following clients following the March 2010 Global Refresh of MIs and/or SHs processing:

  • All less than maximum rate service pension (SP), income support supplement (ISS) and DSS AP recipients including those in receipt of DFISA, who have MIs and/or SHs recorded in their assessment;
  • Maximum rate SP/ISS/AP recipients who have MIs and/or SHs in their assessment who move to less than the maximum rate as a result of the reassessment;
  • Less than maximum rate SP/ISS/AP recipients who have MIs and/or SHs in their assessment and who move to the maximum rate as a result of the reassessment;
  • SP/ISS/AP recipients who have MIs and/or SHs in their assessment and are reduced to nil as a result of the reassessment;
  • All DVA AP recipients who commence payment of DFISA, or whose DFISA payment is cancelled will receive an advice letter, regardless of whether they have MIs and/or SHs in their assessment; and
  • Treatment changes as a result of the Statutory Increase (SI) or global refresh of MIs and/or SHs reassessment.

Defence Force Income Support Allowance (DFISA)

All DVA AP clients with or without  DFISA in payment, who are paid at less than the maximum rate of pension and, who have MIs and/or SHs in their assessment will receive an advice letter following the Global Refresh processing.

In addition, an advice will be produced for those clients who commence payment of DFISA or whose DFISA payment is cancelled following the March processing regardless of whether they have MIs and/or SHs in their assessment.

An example of the advice letter to clients with MIs and/or SHs and in payment of DFISA is shown in ATTACHMENT A.

Introductory Paragraphs for SP/ISS/AP Client's Advices

AP clients in receipt of DFISA will have 'multiple outcome' paragraphs selected as part of their introductory paragraphs – advising them of a variation to their AP payment and DFISA payment.

All AP/SP/ISS client letters will have either the single or multiple outcome introductory paragraphs selected, advising them of the outcome of their payments, as follows:

Multiple Outcome Paragraphs:

This is to advise you that your:

  •       Age pension has been increased/reduced/reduced to nil.
  •       Defence Force Income Support Supplement (DFISA) has varied.
  •       Rent assistance has been reduced.

This change will take effect from 20 March 2010.

Single Outcome Paragraph:

This is to advise you that your service pension has been increased/reduced.  This change will take effect from 20 March 2010.

Financial Assets Reassess-ment

The asset value of MI and/or SH data will be reassessed as part of this process.  Clients with MI and/or SH data recorded in their assessment will receive a paragraph advising them of the 'Change to Value of Shares and/or Managed Investments'.

This paragraph advises clients about the reassessment program and explains that:

'The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your pension and has resulted in an increase, (or an overall reduction) to the amount of pension paid to you.'

OR

'has resulted in your pension being reduced to nil.'

Managed Investments and/or Shares Information Attachment

All less than maximum rate income support recipients with MIs and/or SHs recorded in their assessment will receive a complete listing of all their MIs and/or SHs regardless of which MIs and/or SHs have been reassessed.

We will not be providing clients with a listing of their full Income and Assets.

Changes to Cost of Living or Wages

There will be a paragraph which makes a brief reference to adjustment of pension in line with increases in the cost or living or wages.

Advice on movements in Cost of Living index variations will also be included in the March edition of Vetaffairs, which is to be distributed from 11 March 2010.

Obligations to be Suppressed

Full and Partial obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients and in the case of SP and ISS recipients, reference will also be made to obligations provided in the 'You and Your Pension' Booklet.

The Financial Obligations paragraph (including the Prescribed Rates), will be present in the advice for all clients, excluding SP and ISS pensioners who are reduced to nil.

DVA Age Pensioners who are reduced to nil, but continue in payment of DFISA will receive their Financial Obligations paragraph including their prescribed rates.

Deeming Interest Rate Explanation Paragraphs

There will be a further change to the deeming interest rates from 2% to 3% for amounts up to and including $42,000 ($70,000 per couple) and from 3% to 4.5% for amounts over $42,000 ($70,000 per couple).

All letters will provide a deeming explanation paragraph and information on the new deeming interest rates.

A table showing the 'Total Financial Assets' held and the value of those assets will also be provided.

Advices to be Checked – Treatment

For the March 2010 Global Refresh the Enclosure (treatment changes) advice letters will be printed at the nominated printer at each location.

These letters should be checked for accuracy and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs.  It should be noted that not all clients who have an advice produced due to a treatment change will have MIs and/or SHs in their assessment.  Clients who do not have MIs and/or SHs in the assessment will not have MIs and/or SHs related paragraphs appearing in their advice.

Advices to be checked – GROOVER

The March 2010 GROOVER advice letters will be printed at the nominated printer at each location. These letters should be checked for accuracy and reconciled against the reports received in each location.

Tasmanian Clients with Overseas Postal Address

Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted from the Mailing House.

Blind Clients will not receive an advice

Blind clients will not receive an advice.  Where a member of a couple is assessed as 'blind', a single advice will only be produced for the non-blind member who may be affected by the processing.

An exception to this rule is where a blind client with MIs and/or SHs in their assessment is also in payment of rent assistance (RA), which is subject to the income and assets tests and, as such, may result in a variation to their RA payment.  Where there is a variation to the RA payment for these clients, an advice will be produced.

Single & Joint Addressed Letters

All SP and ISS recipient couples will receive a joint advice, provided the pensioner addresses are identical, this includes illness separated couples.  The batch address defaults determining single and joint advices have been aligned with the PIPS PC daily advice defaults.  Where both members of a couple have the same postal address recorded, a joint advice will be produced.

Important to note: Staff are reminded when granting AP or for those clients in a joint assessment who request separate or single advices, they need to update this information using the mainframe PRODIMS – Client Correspondence Client Options (CO.CO) Screen – prior to the batch processing run to initiate the client request.  The advice default requests set in CO.CO will override the DOCGEN and PIPS advice rules.

AP couples will receive separate letters, providing the advice default request has been set in CO.CO.

General Information Sheet

The General Information Sheet (GIS) has been updated with the latest pension rates and limits.  It will be incorporated into the advice for clients whose income support pension is reduced to nil or change from Transition to Non-Transitional after batch processing.

The GIS has been a part of the daily letter production for grant advices and this practice will continue.

Deputy Commissioner signatures

Letters will be signed by the Deputy Commissioner of each state followed by the title of – 'Deputy Commissioner as Delegate of the Secretary and Repatriation Commission' for SP & ISS recipients and 'Deputy Commissioner as Delegate of the Secretary' for AP recipients.  The Deputy Commissioners for each State are as follows:

New South WalesJennifer Collins

VictoriaMike O'Meara

QueenslandAlison Stanley

Western AustraliaRussell McLaughlan

South AustraliaIan Kelly

TasmaniaJan Hyde

Production of Advice Letters

SI/Global Refresh Processing

SI Processing is scheduled to run from Friday night, 5 March 2010, following the completion of the IPS FORT processing through until approximately Sunday night, 7 March 2010.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)

Friday (pm) 5 March 2010 – Sunday (pm) 7 March 2010

Transmission of Production Data to Mailing House

Monday, 8 March 2010

Mailing House to commence printing Advice Letters

Tuesday, 9 March 2010

Mailing House to commence National Lodgement of all Advice Letters at the completion of processing – lodgement of letters with Australia Post can commence from:

Thursday, 11 March 2010

Mailing House to complete National Lodgement of all Advice Letters with Australia Post by:

COB Friday, 12 March 2010

Expected Client Numbers

The approximate number of letters to be sent nationally following processing is approximately 61,000 based on the September 2009 mailout statistics.  The March 2010 statistics will be confirmed following processing.

STATE

NUMBER OF ADVICE LETTERS

NSW (and ACT)

18,044

VIC

12,992

QLD

13,132

SA

7,958

WA

6,731

TAS

2,090

TAS OVERSEAS

499

TOTAL

61,446

Printing of Letters

The contracted mailing house, SALMAT BusinessForce located in Mulgrave, Victoria, will print, fold and insert advice letters from Tuesday, 9 March 2010 through until Friday, 12 March 2010.

Lodgement of Advice Letters with Australia Post

Once the advice letters have been processed for all states they will be lodged as one national lodgement with Australia Post from Thursday, 11 March 2010 with the deadline for all letters to be lodged with Australia Post by COB Friday, 12 March 2010.  A representative from the Cards, Systems and Advices Team will notify and confirm all lodgement details.

The Contact Officers for this exercise will be given progress reports and advised of any changes to this timetable.

Centrelink DFISA Advices from CPI Processing

DVA will be suppressing the printing of all Centrelink (CLK) daily DFISA variation advices with an effective date of 20 March 2010, which are transmitted to DVA following the running of the CLK CPI processing.  CLK SI Variation advices will be suppressed for three days on 8th,9th and 10th March 2010.  All other advices will print as part of the normal processing, including the printing of the CLK DFISA cancellation and grant advices.

Foreign Pension Refresh Program known as GROOVER

The foreign pension refresh program referred to as 'GROOVER' is a separate processing exercise to the March 2010 Global Refresh processing and is tentatively scheduled to run on the evening of Thursday, 11 March 2010 – after the March Global Refresh processing.  The effective date of the Foreign Pensions Refresh Run is 20 March 2010 for payday 25 March 2010.

Separate Foreign Income advices are produced for clients who have foreign pensions, excluding the British Social Security Pension (type 08), British Official Public Service/Forces pension (type 09) and British Other Income (type 07).

Clients whose pension has been varied will receive an advice.

Please note:  The March 2010 GROOVER advice letters will be printed at the nominated printer at each location.

These letters should be checked for accuracy, reconciled against the reports received in each location and held pending notification that the March 2010 quarterly letters have been dispatched.  This will ensure the pensioners receive their advice letters in chronological order.

Issues Requiring Staff Action

Enclosure (Treatment Changes) Advice Letters

Enclosure (treatment changes) advice letters will be printed at the nominated printer in each location and should be available on your printer on the morning of Monday 8th March 2010. Printer identification at each location are:

SA– S116P

TAS– T003P

WA– W014P

VIC– V011P

NSW– N604P

QLD– Q403P

These letters should be checked for accuracy prior to sending to clients, and reconciled against the reports received.  It should be noted that not all clients who have an advice produced due to a treatment change will have MIs and/or SHs in their assessment.  Clients who do not have MIs and/or SHs in the assessment will not have MIs and/or SHs related paragraphs printed in their advice.

ZIP Files of Advice Schedule Reports

A Zip File listing details of all clients who receive an advice will be emailed to the Income Support System Support Officer in each Office during the week following the processing run.  The Zip File replaces the Advices Schedule Report, which is too large to print on the printers in each office.

Reduction to Nil Letters

Any Reduction to Nil advice letters will be printed at the nominated printer in each state location.  Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and a reply paid envelope for the client to return the completed form with the advice letter.

MOA 15 or MOA 16 Cases - An advice to be produced

Clients who have MIs and/or SHs in their assessment and are paid War Widows Pension and Rent Assistance (RA) but whose income support supplement or service pension is paid at the nil rate will receive an advice letter advising them if their RA has varied following the Global Refresh.

Reprints of Advices Available using VIEW – Advices Tab

Reprints of individual advice letters produced from the quarterly processing can be requested via VIEW – Advices Tab reprint facility.  Quarterly advice reprints are available and can be requested from day one of the next quarter (ie. March quarterly advices from 01/04/YYYY, June quarterly advices from 01/07/YYYY and September quarterly advices from 01/10/YYYY).

'HELD' Advices to be Forced

As part of the Batch processing run any advices in 'Held' status will be forced to print.  Forced held advices will print at each respective office's nominated printer as part of the production processing.

Please ensure your designated printer is fully operational during the processing period.  These advices will need to be checked to ensure the information in them is correct prior to posting.

Holding of daily advice letters

Daily payment advice letters produced after the processing run on the weekend of 5 – 7 March 2010, should be held pending notification that the March 2010 quarterly letters have been dispatched.  This will ensure that pensioners receive their advice letters in chronological order.

Income Support Contact Officers

Income Support Contact Officers

  •   Genia Sacharczuk – NSW,SA, WA,TAS and ACT
  • Steven Jensen – VIC and QLD
Feedback from Staff

Any concerns regarding letters produced as part of this run should be directed to Vasu Sarpeshkar.  Please forward your feedback or query to Vasu via:

Phone:(02) 9213 7234

Mobile:0413 384 102 (5/3/2010 to 15/3/2010)

Fax: (02) 9213 7885 (Fax)

Email: vasu.sarpeshkar@dva.gov.au

Mockups of Letters to be Produced

Letter Content

Details of the proposed content of the letters, including sample letters and sequencing of paragraphs are included in Attachment A.

Attachment A – Paragraph sequencing and Advice Letter Examples:

Example 1A: SP Increase - Less than Maximum rate remaining on Less than Maximum rate- with MIs/SHs in assessment.

Example 2A: Age pension reduced, Asset tested - Nil DFISA, RA increased, Nil MIs and/or SHs, Deemed income.

Example 3A: ISS increase remaining on Less than Maximum rate, with MIs/SHs in assessment, RA in payment.

Example 4A: SP Reduction to Nil. with MIs and/or SHs in assessment, Deemed income, RA cancelled.

Example 5A: Age Pensioner Increase, DFISA varied, with MIs and/or SHs in assessment, deemed income.

Letter Variables

Please note, in the following samples:

  • Letterhead, DC name and signature block will change according to State;
  • The words “service pension”, “age pension”, “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension; and
  • State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues will be used for this mailout.


ATTACHMENT A

EXAMPLE 1A:

  • OVERALL INCREASE – EITHER FROM LESS THAN MAXIMUM RATE TO LESS THAN MAXIMUM RATE OR INCREASE FROM LESS THAN MAXIMUM RATE TO MAX RATE AMOUNT
  • SINGLE OUTCOME
  • WITH MIs/SHs IN ASSESSMENT
  • SERVICE PENSIONERS
  • MARRIED ASSESSMENT
  • INCOME TESTED

GPO Box 9998, Brisbane  QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

JOHN & MARY SMITH              Postal Address:

JOHN SMITH              GPO Box 9998 Brisbane Qld 4001

MARY SMITH              Telephone:

29 MARGARGET STREET              General inquiries: 133 254

IPSWICH  QLD  4010              Non-metropolitan callers: 1800 555 254

              Facsimile: (07) 3223 8479

              8 March 2010

              YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

This is to advise you that your service pension has been increased.  This change will take effect from 20 March 2010.

Payment Information

Details of your payments are provided in the Payment Information Attachment.


Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your service pension payment and has resulted in an increase to the amount of service pension paid to you.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of service pension you are paid.

Your pension has been adjusted in line with increases in the cost of  living or wages where applicable.

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2010, the deemed interest rates will change.  The new deemed income rates of 3% for amounts up to $42,000 ($70,000 per couple) and 4.5% for amounts over $42,000 ($70,000 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

x%

$XX.XX

$XX,XXX.XX

y%

$XX.XX

$XX,XXX.XX

$XXX.XX

What is Deemed Income

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.


Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452 or 1800 550 452(Non-Capital city callers).  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission


PAYMENT INFORMATION ATTACHMENT

The Department now calculates pension payments on a daily basis.  This means that your fortnightly pension payment is made up of 14 days of entitlement of pension.  Therefore, when there is a change to your circumstances on any particular day in the fortnight - your pension will be adjusted from that day.  For that reason your pension payment may be different for one or two paydays after a reassessment.

Payment for 25 March 2010VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx

Payment for 8 April 2010VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx

Please Note:  If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.


SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 8 March 2010)

You are receiving service pension at less than the maximum rate payable. (If client goes from LMAX to MAX rate this sentence will read: 'You are receiving service pension at the maximum rate payable.)

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset values of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments have been automatically updated.

The asset values of any unlisted public company shares, overseas shares, options, rights and futures or account based managed investments you hold have not been updated.  You must tell us if the asset value of these investments has varied by $1,000 or more.


The information below sets out the values for the shares and/or managed investments in your current assessment.

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

Important Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of service pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed.  Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.


EXAMPLE 2A:

  • OVERALL INCREASE – REMAINING ON LESS THAN MAXIMUM RATE OF AGE PENSION WITH NIL MIs/SHs IN ASSESSMENT
  • DEEMED INCOME
  • AGE PENSION– SINGLE ADVICE
  • MULTIPLE OUTCOMES
  • RENT ASSISTANCE PAYABLE
  • INCOME TESTED

GPO Box 9998, Brisbane  QLD  4001

Contact:Brisbane Office

Telephone:

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

JOHNATHON NEWBRIDGEPostal Address:

JOHNATHON NEWBRIDGEGPO Box 9998 Brisbane Qld 4001

18 BATHURST STREETTelephone:

TOOWOOMBA  QLD  4010General inquiries: 133 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 3223 8479

8 March 2010

YOUR FILE NUMBER IS QX666666

Dear Mr NEWBRIDGE,

This is to advise you that your:

  • Age Pension has been reduced.
  • Rent assistance has been increased.

This change will take effect from 20 March 2010.

Change to Pension due to cost of living or wages increases

Your pension has been adjusted in line with increases in the cost of  living or wages where applicable.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2010, the deemed interest rates will change.  The new deemed income rates of 3% for amounts up to $42,000 ($70,000 per couple) and 4.5% for amounts over $42,000 ($70,000 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

x%

$XX.XX

$XX,XXX.XX

y%

$XX.XX

$XX,XXX.XX

$XXX.XX

What is Deemed Income

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if you gain or dispose of any assets, or the value of your existing assets varies, or your gross income from all sources increases about $XXXX.XX per fortnight.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.


Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452 or 1800 550 452( Non-Capital city callers).  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner ass Delegate of the Secretary

ATTACHMENTS

  • Payment Information Attachment - YES
  • Shares and/or Managed Investments Information Attachment - NO


EXAMPLE 3A:

  • OVERALL INCREASE – REMAINING ON LESS THAN MAXIMUM RATE OF INCOME SUPPORT SUPPLEMENT WITH MIs/SHs IN ASSESSMENT
  • INCOME SUPPORT SUPPLEMENT – SINGLE ADVICE
  • DEEMED INCOME
  • MULTIPLE OUTCOMES
  • RENT ASSISTANCE PAYABLE
  • INCOME TESTED

GPO Box 9998, Brisbane  QLD  4001

Contact:Queensland Office

Telephone:

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

GERALDINE THOMPSONPostal Address:

GERALDINE THOMPSONGPO Box 9998 Brisbane Qld 4001

29 MARGARET STREETTelephone:

IPSWICH  QLD  4010General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Facsimile: (07) 32238585

8 March 2010

YOUR FILE NUMBER IS QX666666

Dear Mrs THOMPSON,

This is to advise you that your:

  • Income support supplement has been increased.
  • Rent assistance has been increased.

This change will take effect from 20 March 2010.

Payment Information

Details of your payments are provided in the Payment Information Attachment.


Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your income support supplement payment and has resulted in an increase to the amount of income support supplement paid to you.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of income support supplement you are paid.

Your pension has been adjusted in line with increases in the cost of  living or wages where applicable.

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2010, the deemed interest rates will change.  The new deemed income rates of 3% for amounts up to $42,000 ($70,000 per couple) and 4.5% for amounts over $42,000 ($70,000 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

x%

$XX.XX

$XX,XXX.XX

y%

$XX.XX

$XX,XXX.XX

$XXX.XX

What is Deemed Income

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your gross income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452 or 1800 550 452 (Non-Capital city callers).  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - YES
  • Shares and/or Managed Investments Information Attachment - YES


EXAMPLE 4A:

  • SERVICE PENSION – REDUCTION TO NIL
  • MIs/SHs IN ASSESSMENT
  • RENT ASSISTANCE CANCELLED
  • SINGLE ASSESSMENT
  • MULTIPLE OUTCOMES

GPO Box 9998, Brisbane  QLD  4001

Contact:Brisbane Office

Telephone:

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

WILLIAM TELLPostal Address:

WILLIAM TELLGPO Box 9998 Brisbane Qld 4001

29 MARGARET STREETTelephone:

IPSWICH  QLD  4010General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Facsimile: (07) 3223 8479

8 March 2010

YOUR FILE NUMBER IS QX333444

Dear Mr TELL,

This is to advise you that your:

  • service pension has been reduced to nil.
  • rent assistance has been cancelled.

This change will take effect from 20 March 2010.

Payment Information

Details of your payments are provided in the Payment Information Attachment.


Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your service pension payment and has resulted in your service pension being reduced to nil.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share and managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of service pension you are paid.

Your pension has been adjusted in line with increases in the cost of  living or wages where applicable.

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2010, the deemed interest rates will change.  The new deemed income rates of 3% for amounts up to $42,000 ($70,000 per couple) and 4.5% for amounts over $42,000 ($70,000 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

x%

$XX.XX

$XX,XXX.XX

y%

$XX.XX

$XX,XXX.XX

$XXX.XX

What is Deemed Income

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

Pensioner Concession Card

As your service pension is no longer payable, you no longer qualify for fringe benefits from this Department.  Please destroy your existing Pensioner Concession Card as it is illegal for this card to be used after cancellation and use can be checked by electronic validation by some concession providers.

Your Right to Re-Apply

You may re-apply to have your service pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452 or 1800 550 452(Non-Capital city callers).  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - YES
  • Shares and/or Managed Investments Information Attachment – YES
  • General Information Sheet – YES – RTN clients continue to receive the GIS.  The GIS is not produced for all other advice letters.

DFISA LETTERS

EXAMPLE 5A:

  • AGE PENSION INCREASE (Less than Max Rate to Less than Max Rate or to Max Rate)
  • DEEMED INCOME
  • INCOME TESTED
  • MULTIPLE OUTCOMES
  • DFISA VARIATION
  • WITH MIs/SHs IN ASSESSMENT

GPO Box 9998, Brisbane  QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

PHILLIP JOHNSTON              Postal Address:

PHILLIP JOHNSTON              GPO Box 9998 Brisbane Qld 4001

30 ELIZABETH STREET              Telephone:

TOOWOOMBA  QLD  4045              General inquiries: 133 254

              Non-metropolitan callers: 1800 555 254

              Facsimile: (07) 3223 8479

              8 March 2010

              YOUR FILE NUMBER IS QX123456

Dear Mr JOHNSTON,

This is to advise you that your:

  • Age pension has been increased.
  • Defence Force Income Support Allowance (DFISA) has varied.

This change will take effect from 20 March 2010.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your age pension payment and has resulted in an increase to the amount of age pension paid to you.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of age pension you are paid.

Your pension has been adjusted in line with increases in the cost of  living or wages where applicable.

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2010, the deemed interest rates will change.  The new deemed income rates of 3% for amounts up to $42,000 ($70,000 per couple) and 4.5% for amounts over $42,000 ($70,000 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

x%

$XX.XX

$XX,XXX.XX

y%

$XX.XX

$XX,XXX.XX

$XXX.XX

What is Deemed Income

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this decision, you can contact your nearest Veterans' Affairs office and discuss the reasons for the decision.  If you remain dissatisfied, you may apply to have the decision reviewed by an Authorised Review Officer, with no prior involvement in the case.  If you decide to apply for a review more than 13 weeks from the day this notice is given to you, arrears can only be paid from the date we receive your application.  Requests for review may be made in person, by telephone or writing.

The rate of DFISA paid to you is derived from your age pension assessment.  You may seek to have your age pension assessment reviewed if you are dissatisfied with your DFISA rate.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452 or 1800 550 452(Non-Capital city callers).  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner as Delegate of the Secretary


PAYMENT INFORMATION ATTACHMENT

The Department now calculates pension payments on a daily basis.  This means that your fortnightly pension payment is made up of 14 days of entitlement of pension.  Therefore, when there is a change to your circumstances on any particular day in the fortnight - your pension will be adjusted from that day.  For that reason your pension payment may be different for one or two paydays after a reassessment.

Payment for 25 March 2010 Veteran

TOTAL FORTNIGHTLY PAYMENT                                        $XXX.XX

This is made up of:

- Disability pensionXXX.XX

- Defence Force Income Support Allowance                XX.XX

- Age pensionXXX.XX

- Pharmaceutical allowance   X.XX

Payment for 8 April 2010Veteran

TOTAL FORTNIGHTLY PAYMENT                                        $XXX.XX

This is made up of:

- Disability pensionXXX.XX

- Defence Force Income Support Allowance                XX.XX

- Age pensionXXX.XX

- Pharmaceutical allowance   X.XX

Please Note: If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.


SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 8 March 2010)

You are receiving age pension at less than the maximum rate payable.

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments have been automatically updated.

The asset values of any unlisted public company shares, overseas shares, options, rights and futures or account based managed investments you hold have not been updated.  You must tell us if the asset value of these investments has varied by $1,000 or more.

The information below sets out the values for the shares and/or managed investments in your current assessment.

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

Important Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment however, they continue to be used in assessing the amount of age pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed. Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.