Date amended:
External
Policy

   VEA ?

 

Pension may be suspended or forfeited when pensioner in gaol

Section 55A VEA

 

VEA ? (go back)

 

Overview

When a pensioner is imprisoned in connection with his or her conviction for an offence, the Commission has discretion to order the prisoner's pension instalments to be either suspended or redirected.

Who can pension instalments be redirected to?

    VEA ?

 

Instalments may be redirected to partner or child

Section 55A(1) VEA

 

VEA ? (go back)

The Commission has discretion to redirect all or part of an imprisoned person's pension instalments if the person has a partner or child. Any pension instalment, or portion thereof, that is not redirected for the benefit of a partner or child may be suspended or forfeited. The redirection of pension can be paid to:

  • the partner, or
  • the child, or
  • to another person for the benefit of the partner or child.
Who is regarded to have received redirected pension instalments?

    VEA ?

 

Instalments may be redirected to partner or child

Section 55A(3) VEA

 

VEA ? (go back)

The amount of pension instalments redirected from the prisoner to the partner or child will continue to be regarded as a payment to the prisoner and will be included in the payment summary issued at the end of the financial year. As a result, the pensioner continues to be eligible for fringe benefits where entitled.

When to redirect a pension

The following table demonstrates under which circumstances a prisoner's pension instalments can be redirected.

If the prisoner has a...

Then the prisoner's pension instalments...

And that person will...

partner who is receiving social security payment from Centrelink

are suspended, and not redirected to the partner

need to apply to Centrelink for additional pension for themselves and any children

partner who is receiving service pension, veteran payment or income support supplement(ISS)

may be fully or partially redirected to the partner

have their pension or payment increased by an amount from the redirection, so that the total payment can equal but not exceed the single rate (service pension or veteran payment) or ceiling rate (ISS).

Note - the maximum single rate of service pension and veteran payment for redirection purposes includes all those components of pension, such as pension supplement, energy supplement (not payable with veteran payment) and rent assistance, which comprise the rate of service pension or veteran payment in the Rate Calculators.

child, but no partner

may be fully or partially redirected to a person caring for the child

receive an amount through the redirection that is necessary to maintain the child.

Note: Redirection is not applicable if the child is maintained by a State Authority