C01/2001 MARCH 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

DATE OF ISSUE: 16 MARCH 2001

MARCH 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the March 2001 global refresh advice letter mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

In March we do not send advice letters to all pensioners whose pensions are adjusted because of the CPI increase that applies for 20 March 2001. Advice on these increases is contained in the latest edition of VetAffairs (distribution commences on 26 March 2001 - 6 April 2001). However, letters will be sent to pensioners affected by the events set out in the following paragraph.

Significant Issues

The March 2001 Quarterly mailout will incorporate the following events for payday 5 April 2001 (WEF 20 March 2001):

The asset value of managed investment and share data will be reassessed
Treatment changes as a result of the reassessment.

Letter Content

Advice Letter Target Audience

A letter will be produced only for those clients who have Managed Investments (MIs) and/or Shares (SHs) in their assessment and who meet the following:

All less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP)
Max rate SP/ISS/AP who move to less than max rate as a result of the reassessment
Less than max rate SP/ISS/AP who move to max rate as a result of the reassessment
Reduction to nil cases as a result of the reassessment
Treatment changes as a result of the reassessment

Adjustment arrangements explanation paragraph - 'Payment Adjustment'

A 'new' paragraph has been included in the advices for the March 2001 processing run. This paragraph is to explain the adjustment arrangements in place to cater for the advance paid in July 2000 and the balance to be paid in March 2001.

Continuation Cases

Cases where the 'old rate' resulting from the Statutory Increase processing and the 'new rate' resulting from MI/SH refresh end up being the same amount after the reassessment will not have an advice produced.

Obligations suppressed

Obligations are to be suppressed for all letters produced. Reference will be made to previous obligations issued to clients. The reference to obligations in particular, the reference from 21 days to 14 days, did raise some comments from State Office Staff who felt that there should be no obligations paragraph in this mailout, while another comment was to have the obligations paragraph bolded. It was decided to retain the reference to obligations for this mailout and further discuss the options available at the next Pensioner Initiated Review (PIR) Reduction Working Group.

$1 Minimum Variation Rules

The $1min rules will be applied to all less than max rate SP and ISS variation cases ie., an increase or reduction must be equal to or greater than a $1 amount to receive an advice.

$1min rules do not apply to Age Pensioners.

Arrears

The Disability Pension (DP) increase is effective from 20 March 2001 for payday 22 March 2001. DP clients will receive a full payment at the new rate on payday 5 April 2001. DP arrears for payday 22 March 2001 will be paid on or about 28 March 2001.

Treatment Problems

As is the procedure for quarterly processing all Special Register, Overseas and Enclosure (treatment) advice letters will be printed by IBM in Melbourne and sent via courier to each State Office. We always request that these be checked for accuracy, and reconciled against the reports received by each State Office.

There is a known problem with 'treatment entitlement' which will require you to check all enclosure advices. You will need to check the client's treatment entitlement to ensure they have received the correct treatment card information in their advice.

General Information Sheet

Each letter will contain a General Information Sheet (GIS). This will act as the consistent last page for gatemarking purposes at the mailing house. The GIS provides details of new rates and threshold information.

Single & Joint Letters

All Service Pensioners and Income Support Supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.

Age Pensioner couples will receive separate letters.

Production of Advice Letters

Processing

Processing is scheduled to run from Thursday evening 22 March until Monday evening 26 March 2001.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)	Thursday (pm), 22 — nd March 2001 - Monday (pm), 26 — th March 2001
Dispatch Production Data to SMS	Tuesday, 27 — th March 2001
Commence Printing Advice Letters	Wednesday, 28 — th March 2001
End Printing Advice Letters	Thursday, 29 — th March 2001
Lodgement of Advice Letters with Australia Post	Friday, 30 — th March 2001

Client Numbers

The following is a summary of client numbers in each State. The numbers are approximates only:

STATE	NO. OF LETTERS (Approx Only)
New South Wales	6,071
Victoria	4,730
Queensland	3,618
Western Australia	1,678
South Australia	1,758
Tasmania	550
TOTAL	18,405

Printing of Letters

Security Mailing Services (SMS) Sydney, will print and envelop advice letters in the week from Tuesday 27 March thru to Friday 30 March 2001.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 30 March 2001. A representative from National Office will notify details of lodgement for each State as they occur.

The State Office Contacts for this exercise will be given progress reports and advised of any changes to this timetable.

Issues Requiring State Office Action

Special Register, Overseas & Enclosures

Special Register, Overseas and Enclosure advice letters will be printed by IBM in Melbourne and sent via courier to each State Office. These should be checked for accuracy, and reconciled against the reports received by each State Office. This arrangement is the same as for daily advice letters.

Each State Office will receive a report detailing the advice letters produced in each of these categories. We will advise SSOs in each State when to expect delivery of these letters, and it is essential that Systems Delivery is notified if they do not arrive. It is also necessary to advise Carol Walsh, Systems Delivery on (02) 6289 6729 if the delivered letters do not exactly match the reports.

Please note the reference to the section on 'Treatment Problems' mentioned earlier in this Departmental Instruction. We request that all enclosure advices be checked for accuracy.

Reprints of selected letters

Any requests for reprints of individual Quarterly Advice letters should be referred to System Support Offices to organise a reprint.

'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 IBM in Melbourne and will be delivered to each State Office. Advice of when you should expect to receive your forced held advices will be given prior to their delivery. 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 of 22 -26 March 2001 may be sent to clients who do not have MIs and/or SHs in their assessment and therefore have not been updated as part of the Global Refresh.

However, payment advice letters produced for clients who have MIs and/or SHs in their assessment must be withheld pending notification that the quarterly letters have been dispatched. This will ensure that pensioner's receive their advice letters in chronological order.

Cases with arrears will continue to have their arrears paid to them 2 working days after processing.

$FORT run - 19 March 2001

$FORT has been scheduled to run on Monday night 19 March 2001. Advices from this run should be sent straight away.

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the National Office Contact Officer, Pat Webb. At the end of this process we will be collating all State feedback to analyse issues raised and develop solutions to address any concerns raised. Any problems noted should be reported to the National Office Contact Officer with the nature of the query and the file number of the client. Please ensure that problems are reported as early as possible.

Contacts

There will be one National Office contact for this mailout. Any queries regarding advice wording, data cartridges, mail house printing and letters lodgement should be referred to:

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6553 (Fax)

Systems issues should be directed to:

Carol Walsh on (02) 6289 6729

Letter Mockups

Letters

Prior to the issue of this Departmental Instruction, System Support Officers and Manager's Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

A number of recommendations were received and have been taken into consideration for the final version of paragraphs and sequencing. An email has been forwarded to the March SI State Contact Officers advising of the changes in respect of all comments received.

Copies of the amended advice letters for this run are at Attachments A, B and C of this DI.

Attachment A – Paragraph sequencing

Attachment B – Advice Letter Examples

Example 1: Less than Maximum Rate, Married, Increase, MI/SH in Assessment, Full Income & Asset Listing

Example 2: Increase to Maximum Rate, MI/SH in Assessment, Full Income & Asset Listing

Example 3: Decrease as a result MI/SH reassessment, Full Income & Asset Listing

Example 4: Age Pension increase, Disability Pension in payment, MI/SH in Assessment, Full Income & Asset Listing

Example 5: Reduction to Nil as a result of MI/SH reassessment, Full Income & Asset Listing.

Attachment C – Example General Information Sheet

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.
State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues have been introduced for this mailout.

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advices will only be produced for clients with Shares and/or Managed Investments in their assessment.

Paragraph	To Whom
State specific letterhead	All
Opening	All
Reduction to Nil para	Reduction to Nil cases
Payment Adjustment (explaining adjustment arrangements)	All (not Reduction to Nil cases)
Payment Details and payment box	All
Payment Diversion Table	All
Arrears	Cases with DP in their assessment.
“You have been increased to the maximum rate of pension”	All increase to max rate cases
Change to value of shares and managed investments/payment adjustment explanation	Reduction to Nil cases.
Fringe Benefits	Reduction to Nil cases
Your Right to Re-Apply	Reduction to Nil cases
Treatment On/Off	Any cases where a change in treatment eligibility is detected
Your Obligations (reference to previous)	All (not Reduction to Nil cases)
Changes You Have Already Told Us About	All
Your Right of Review	All
State specific closing paragraph and Signature	All
Full Income/Assets Listing	All
General Information Sheet	All

ATTACHMENT B

EXAMPLE 1: Less than Max Rate, Married, Increase, MI/SH in assessment, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

Pension Adjustment

The maximum rate of pension has been increased by 2% with effect from 20 March 2001. This 2% increase is in addition to a 2% advance paid to you in July 2000. The combined effect delivers the full 4% March CPI adjustment.

Additionally in March and September of each year the asset values of your listed shares and/or unit based managed investments are reassessed. The new rate of pension and the adjusted value of these investments have been used to work out your T-PENSION-SP-ISS-AP payment.

Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx x.xx x.xx

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
T-PAYDIVER-DATE	T-PAYDIV-PAYEE	T-PAYDIV-PAYDEST	T-PAYDIV-AMOUNT

Your Obligations

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

Note that the notification period for changes to circumstances that may affect your pension has changed from 21 days to within 14 days (28 days if you are living overseas or receiving remote area allowance).

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.

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 for a review, you must do so within the next three months. 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 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

EXAMPLE 2: Increase to Maximum Rate, MI/SH in assessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx x.xx x.xx

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
T-PAYDIVER-DATE	T-PAYDIV-PAYEE	T-PAYDIV-PAYDEST	T-PAYDIV-AMOUNT

You have been increased to the maximum rate of T-PENSION-SP-ISS-AP

Your Obligations

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

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

EXAMPLE 3: Decrease as a result of reassessment of MI/SH, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx x.xx x.xx

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
T-PAYDIVER-DATE	T-PAYDIV-PAYEE	T-PAYDIV-PAYDEST	T-PAYDIV-AMOUNT

Your Obligations

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

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

EXAMPLE 4: Age Pension Increase, Disability Pension in payment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxx — xxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx x.xx

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
T-PAYDIVER-DATE	T-PAYDIV-PAYEE	T-PAYDIV-PAYDEST	T-PAYDIV-AMOUNT

Payment of Arrears

Arrears will be paid to the following destination(s). Please allow 2 working days for the arrears to be available.

Date	Name	Payment Destination	Amount
26/03/01	XX XXXXXX	CBA 123456	$XX.XX

Your Obligations

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

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

EXAMPLE 5: Reduction to Nil, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Your T-PENSION-SP-ISS-AP has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension.

Payment Information

Please refer to the following table to see the breakdown of your payment.

PAYMENTS TO XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx x.xx x.xx

Change to the value of shares and managed investments

The asset value of your listed shares and/or unit based managed investments has been reassessed. The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in your T-PENSION-SP-ISS-AP being reduced to nil. Details of your investments are listed in this advice.

Fringe Benefits

As you are no longer eligible for a T-PENSION-SP-ISS-AP you no longer qualify for fringe benefits from this Department. Please destroy your existing Pensioner Concession Card.

Your Right to Re-Apply

You may re-apply to have your T-PENSION-SP-ISS-AP 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

Your Right of Review

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

ATTACHMENT C

This is an example only of the General Information Sheet (GIS) for Service Pensioners that will be used in the March mailout. There is a separate GIS for both Income Support Supplement recipients and Age Pensioners. PLEASE NOTE: the rates reflected in this document do not necessarily represent the 'new' rates - the amended rates were not available at the time of preparing this document.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

(Information current as at T-ADVICE-PRINT-DATE )

MAXIMUM RATES OF SERVICE PENSION (excludes pharmaceutical allowance)

Singles Rate$402.00 (per fortnight)

Couples Rate (each)$335.50 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$106.00$1,125.50

Couples Rate (combined)$188.00$1,880.00

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

PENSION ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$133,250$269,250

Couples Rate (combined)$189,500$415,500

Non Home Owner

Singles Rate$228,750$364,750

Couples Rate (combined)$285,000$511,000

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

NOTE: *Income and assets cut off limits apply to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

GOLD CARD INCOME CUT OFF LIMIT FOR VETERANS UNDER70 YEARS

Singles Rate$311.50 (per fortnight)

Couples Rate (combined)$543.00 (per fortnight)

Add $67.10 per fortnight for each dependent child or student to the age of T-CHILD-AGE.

GOLD CARD ASSETS CUT OFF LIMIT FOR VETERANS UNDER 70

Home Owner

Singles Rate$160,750

Couples Rate (combined)$237,000

Non Home Owner

Singles Rate$256,250

Couples Rate (combined)$332,500

Add approximately $5,750 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE 1: These income and asset limits apply to the Gold Card only. Different income and asset limits apply to the pension. These limits can be found at the top of the page.

NOTE 2: If you are a World War 2 veteran or mariner aged 70 years or over, who served in Australia's Defence Forces or Australia's Merchant Navy between 3 September 1939 and 29 October 1945, and have qualifying service from that conflict, the above Gold Card income and asset cut off limits do not apply to you as your Gold Card is not affected by your income and assets.

DEEMING

Deeming assumes that any money you have invested in financial assets is earning a particular amount of income regardless of the actual amount earned. The deeming rates are:

Singles

Low Rate:- 3.5% interest up to the threshold of $31,600

High Rate:- 5.5% interest for the remaining balance

Couples

Low Rate:- 3.5% interest up to the threshold of $52,600

High Rate:- 5.5% interest for the remaining balance

ILLNESS SEPARATED COUPLES

Couples separated due to ill health are paid at the single rate of service pension, but have their income and assets assessed as a couple.

RENT ASSISTANCE

You may be eligible for rent assistance if you pay rent to a non-government body or landlord. The amount of rent assistance you receive depends on the amount of rent you pay and your family circumstances. Rent assistance is paid at the rate of 75 cents in the dollar for every dollar you pay over the set rent limits.

When calculating the amount of rent assistance payable to a service pension recipient, any disability pension received by that person or their partner, is counted as income and may reduce the rate of rent assistance payable.

Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more

children

Singles Rate$88.00$102.80$116.60

Couples Rate

(combined)$82.80$102.80$116.60

Rent Limits (per fortnight)

No children1-2 children3 or more

children

Singles Rate$78.00$102.60$102.60

Couples Rate

(combined)$127.00$151.80$151.80

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2001/c012001-march-2001-global-refresh-managed-investments-mi-and-shares-sh-mailout