C18/1997 AMENDMENT TO INSTRUCTION C3/97 REGARDING DEEMING RATE CHANGES INTRODUCTION

DATE OF ISSUE:  12 MARCH 1997

AMENDMENT TO INSTRUCTION C3/97 REGARDING DEEMING RATE CHANGES INTRODUCTION

The purpose of this Departmental Instruction is to amend information provided in Departmental Instruction C03/97.  Specifically, the second paragraph in the background information is confusing.

BACKGROUND

2.A news release from the Minister for Social Security on December 5, 1996 stated that the deeming rates would continue to be monitored on an ongoing basis, however any future changes would coincide with the March and September pension indexation increases.

DEPARTMENTAL INSTRUCTION C3/97

3.The information provided by Departmental Instruction C03/97 in the second paragraph of the Background contained incorrect information.

4.The paragraph referred to reads as follows:

“ The drop in the deeming rates by 1 per cent takes in to account the 1 per cent fall in official interest rates over the past six months.  It was also announced that the deeming rates will be reviewed every six months immediately before the March and September pension indexation increases, starting from September 1997.  Any changes to the deeming rates would then be applied at the same time as indexation increases which would reduce disruption to pensioners.”

THE AMENDED INFORMATION

5.This paragraph should be amended to read as follows:

“The drop in the deeming rates by 1 per cent takes in to account the 1 per cent fall in official interest rates over the past six months.  It was also announced that the deeming rates would continue to be monitored on an ongoing basis, however any future changes to the deeming rates would coincide with the March and September pension indexation increases.  This will reduce the disruption to pensioners.”

QUERIES

6.Any queries in respect of this amendment should be referred to Felicity Maher on telephone 06 289 4768, fax 06 289 4853 or LAN C-C-BA-12.

MURRAY HARRISON

BRANCH HEAD

INCOME SUPPORT

PETER REECE

DIVISION HEAD

COMPENSATION

Attachment A

Lump Sum Advance of Pension Advice: Rejection of advance

Reference:{Pensioner's Reference}

Contact:{Contact Name}

Telephone:{Contact Phone}