B17/1992 THE SOCIAL SECURITY AGREEMENT BETWEEN THE NETHERLANDS AND THE AUSTRALIAN DEPARTMENT OF SOCIAL SECURITY

DATE OF ISSUE:  28 April 1992

THE SOCIAL SECURITY AGREEMENT BETWEEN THE NETHERLANDS AND THE AUSTRALIAN DEPARTMENT OF SOCIAL SECURITY

PURPOSE

The purpose of this Departmental Instruction is to advise staff of procedures to be taken in relation to the social security agreement between the Netherlands Social Insurance Bank (SVB)  and the Australian Department of Social Security (DSS) which came into effect on 1 April 1992.

BACKGROUND

2.From the 1 April 1992, under this Social Security Agreement with the Netherlands (SVB) and DSS, eligible persons can:

.apply for a Dutch pension; or

.a re-evaluation of a Dutch Pension entitlement,

at any DSS regional office or office of the Netherlands' Social Insurance Bank (Sociale Verzekeringsbank - SVB).

3.Dutch residents of Australia are receiving letters from the Netherlands, advising that they may be eligible to:

.apply for an Australian age pension (wife pension - for a woman who is the wife of an age pensioner);

.have their current Netherlands entitlement re-evaluated;

.apply for an Australian wife pension;

.claim Australian pension in the Netherlands; or

.allow for people in Australia and the Netherlands to apply for pensions at their respective local DSS or Netherland's Social Insurance Bank.

ACTION BY DEPARTMENT OF VETERANS' AFFAIRS STAFF

4.Cases have been reported where Dutch veterans are making enquiries or presenting their SVB claim forms at Department of Veterans' Affairs Branch Offices.

5.Any claims for the Netherlands Pension are to be administered by DSS as part of the agreement with the SVB.  Staff are advised to direct any persons who make inquiries or produce a claim form for the Netherlands' pension to their local DSS Regional Office.  It may be helpful to advise any such applicant that they will need to take documentation to DSS verifying their Australian citizenship and residence.  This evidence may include:

.group certificates;

.taxation assessment notices;

.statements by employers showing periods of employment;

.naturalisation certificate;

.passport;

.any other relevant document; and

.in the absence of any documents, the names and addresses of two persons, not related to the applicant, who can confirm the required period of residence in Australia.

EFFECT OF NETHERLANDS PENSION PAYMENTS ON SERVICE PENSION ENTITLEMENTS

Veterans' Entitlements Act 1986

6.Under the VEA, an amount of income earned, derived or received includes under sub-section 5H (2):

"(b) an income amount earned, derived or received from any source (whether within or outside Australia)."

7.Therefore, any Dutch veteran who is granted a Neterlands pension must advise DVA.  Service pension is to be reassessed in the usual way.

8.If the Netherlands Pension is paid in Guilders it should be recorded as super type 46.  The current market exchange rate should be used for the conversion to $A.

9.If you have any further enquiries regarding this matter, please contact Policy Administration and Advice Section on (06) 289 6444.

KAY GRIMSLEY

Ag NATIONAL PROGRAM DIRECTOR

BENEFITS