C27/2000 SEPTEMBER 2000 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

DATE OF ISSUE:  18 SEPTEMBER 2000

SEPTEMBER 2000 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

Purpose of Instruction

The purpose of this Departmental Instruction is to provide information about advice letter processing arrangements for the September 2000 global refresh advice letter mailout.

BOB TURNER

A/G BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

This September advice letters will only be sent to pensioners who have Managed Investments and/or Shares in their assessment.  Advice on CPI and MTAWE adjustments will be published in the latest edition of VetAffairs.  There will be no reference to the CPI and MTAWE in the advice letters.

Significant Issues

The September 2000 mailout will incorporate the following events for payday 5 October 2000: 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 for: Less than maximum rate service pensioners (SP), income support supplement (ISS) and age pensioners (AP) with managed investments (MI) and/or shares (SH) in their assessment. Max Rate SP/ISS/AP who move to less than max rate as a result of the reassessment of MI/SH Less than max rate SP/ISS/SP who move to max rate as a result of the reassessment of MI/SH. Treatment changes as a result of the reassessment MI/SH

Income and Asset Listing

Full Income/Asset listings are to be produced for all pensioners receiving a letter in this particular mailout.

No Obligations

Obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients.

Telephone Allowance

Telephone Allowance will be paid on payday 21 September, therefore no reference will be made to the payment of telephone allowance in the September advice letters.

General Information Sheet

Each letter will contain a General Information Sheet (GIS).  This will act as the consistent last page for gatemarking purposes.  The GIS provides details of new rates and threshold information. There have been some wording changes made in the GIS to clarify Gold Card Information.

Single & Joint Letters

All service pensioners and income support supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.  All age pensioners will receive a single letter regardless of couple/single status.

Inserts

There will be no inserts included with this particular mailout.

Production of Advice Letters

Processing

Processing is scheduled to run from Friday 22 September until Tuesday 26 September.

ADP Processing

Detailed information regarding ADP processing will be issued to State System Support Officers in a separate memorandum.  The Systems Support Officers will be issuing a local processing timetable and should be consulted on any matter concerning ADP Processing.

Critical Dates

Processing period within DVA	22-26 September 2000
Dispatch Production Data to SMS	26 September 2000
Commence Printing Advice letters	27 September 2000
End Printing Advice letters	29 October 2000
Lodgement of all Advice Letters with Australia Post	29 October 2000

Client Numbers

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

STATE	NO. OF LETTERS
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 and lodgement of Letters

Security Mailing Services (SMS) Sydney, will print and envelope advice letters commencing 27 — th September with expected final lodgement with Australia Post on Friday 29 — th September 2000.  A representative from National Office will notify details of lodgement for each State as they occur.

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 in with normal daily advice output.  These letters should be checked for accuracy and reconciled against the reports received by each State Office prior to enveloping and mailing. The IMU programmers have been instructed to send Special Register, Overseas and Enclosure advice letters to the State Offices on Thursday 28 — th September 2000.  We should be notified if these letters do not arrive when expected.

Reprints of selected letters

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

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 22-26 September for pay period 60 (5 October 2000) should be held by the State Offices until confirmation is received that the September SI advices have been dispatched.  This will ensure that pensioner's receive their advice in the correct order.

Manual Cases

To minimise the number of daily letters to be held whilst September SI letters are processed, it is suggested that only manual cases (and essential processing) should be processed for 5 October 2000.  General pensions processing should continue unabated but should be submitted for the subsequent payday.

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.  Any problems noted should also be reported to the National Office contact officer with the nature of the query and details of the client.  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.

Contacts

There will be one National Office contact for this mailout.  Any queries regarding advice wording, data cartridges, mail house printing and letter lodgement should be referred to: Kristie Wallace (02) 6289 6019 (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 Offices and Managers Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run. The final version of paragraphs and sequencing for this run are at Attachments A and B of this DI. Attachment A – Paragraph sequencing Attachment B – Advice Letter Examples Example 1: Less than max rate, increase as a result of MI/SH reassessment, full income and asset listing. Example 2: Less than max rate, decrease as a result of MI/SH reassessment, full income and asset listing. Example 3: Less than max rate, reduction to nil as a result of MI/SH reassessment, full income and asset listing.

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” and “income support supplement” each represent variables (ie. T-PENSION-SP-ISS-AP) which will appear for those clients in receipt of the applicable pension.

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advice letters will only be produced for less than maximum rate clients with Share and/or Managed Investments in their assessment.

Paragraph	To Whom
State specific letterhead	All
Opening paragraph	All
Payment Information	All
Payment Diversion	All
Change to value of Shares and Managed Investments	Increase Cases
Change to value of Shares and Managed Investments	Decrease Cases
Change to value of Shares and Managed Investments	Reduction to Nil Cases
Loss of Fringe Benefits	Reduction to Nil Cases
Treatment	Any cases where a change in treatment eligibility is detected
Your Obligations (reference to previous obs)	All except Reduction to Nil cases
Your Right to Re-Apply	Reduction to Nil Cases
Changes You Have Already Told Us About	All
Your Right of Review	All
Closing Paragraphs and Signature	All
Full Income and Asset Listing	All

ATTACHMENT B

Example 1: < Max rate, Increase as a result of MI/SH reassessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS _

STATE OFFICE

Contact: T-CONTACT-OFFICER

Telephone: T-CONTACT-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.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
5/10/00	XXXXX SSSSS	ANZ 1929393939	$XXX.XX
		TOTAL	$XXX.XX
19/10/00	XXXXX SSSSS	ANZ 1929393939	$XXX.XX
	XXXXX SSSSS	TOTAL	$XXX.XX

Changes to 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 an increase to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice.

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 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 any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth5 absolute

Gary Collins

PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

Payments to XXXXX SSSSS

For Pension Payday 5 October 2000

Payments to XXXXX SSSSS

For Pension Payday 19 October 2000

INCOME AND ASSETS USED TO ASSESS YOUR PAYMNET

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

You are receiving T-PENSION-SP-ISS-AP at less than maximum rate payable.

The amount that you are paid depends on T-YOUR-COMBINED income and assets but does not include the home in which you live.  The pension is calculated under two separate tests: an income test and an assets test.  The test that pays the lower rate of pension is the one that applies.

You are currently paid under the T-INCOME-ASSET-TEST test.  The total of your assessed fortnightly income is T-TOTAL-FORT-INCOME.  The total of all your assets (excluding any deductible assets) is T-TOTAL-ASSETS.  Details of how your pension has been assessed are shown below.

Savings and Cheque Accounts

Description	Account Number	Asset Amount
COMMONWEALTH BANK	3939393939	$XX,XXX.XX
ANZ BANK	102939030	$XX,XXX.XX

IMPORTANT: We understand that the balances in these types of accounts may fluctuate regularly.

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
COMMONWEALTH BANK OF AUSTRALIA	1,000	$XX,XXX.XX
TELSTRA 1	600	$   X,XXX.XX

Managed Investments

Description	Units	Asset Amount
MLC LIMITED	5,000	$X,XXX.XX
BT FINANCIAL SERVICES	2,500	$X,XXX.XX

Note: Income from financial assets is deemed

IMPORTANT: You only need to notify the department if there are any changes to the value of your financial assets, as shown above.  You do note need to advise of any changes to the interest rates for these investments.

Total Financial Assets

FINANCIAL ASSETS VALUE	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3.5%	$XX.XX
$XX,XXX.XX	5.5%	$XX.XX
$XXX,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 are added together, and deemed interest rates are applied to calculate the income.

At present, deemed income is calculated as follows, regardless of the actual interest rates, on the total of all your financial assets:

$0 to T-SINGLE-THRSH-DEEMED-AMT – at T-INC-DEEMING-INT-RATE%

T-SINGLE-THRSH-DEEMED-AMT + - at T-INC-DEEMING-HIGH-RATE%

If your investments are earning more than the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.

Other Income and Assets

The following assets are those which do not have deeming applied to them but are still used to determine your rate of pension.

Home Assets

The asset and/or income values shown below are the amounts used for pension purposes.

• Market value of household contents $XXXXX.XX

Miscellaneous Assets

• Boat – 1985 SAVAGE with a net market value of $X,XXX.XX
• Car – 1985 FORD with a net market value of $X,XXX.XX

Direct Income

• T-DESCRIPT-MISC-EARNINGS - $XX.XX per fortnight

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$394.10 (per fortnight)

Couples Rate (each)$328.90 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$106.00$1105.25

Couples Rate (combined)$188.00$1846.50

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$266,500

Couples Rate (combined)$189,500$411,000

Non Home Owner

Singles Rate$228,750$362,000

Couples Rate (combined)$285,000$506,500

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 UNDER 70

Singles Rate$303.50 (per fortnight)

Couples Rate (combined)$529.50 (per fortnight)

Add $63.10 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$159,750

Couples Rate (combined)$235,250

Non Home Owner

Singles Rate$255,250

Couples Rate (combined)$330,750

Add approximately $5,000 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE:  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.

DEEMING

Rather than calculating the actual income received from your financial assets, they are deemed to earn income at the following rates.

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 Children              1-2 children3 or more children

Singles Rate$86.40$100.80$114.20

Couples Rate (combined)$81.20$100.80$114.20

Rent Limits

No Children1-2 children3 or more children

Singles Rate$75.00$98.60$98.60

Couples Rate (combined)$122.20$146.00$146.00

EXAMPLE 2:  < Max rate, decrease as a result of MI/SH reassessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS _

STATE OFFICE

Contact: T-CONTACT-OFFICER

Telephone: T-CONTACT-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) 3223 8585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUM

T-ADVICE-SALUTATION,

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

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
5/10/00	KKKKK WWWWW	STG 3022006838	$XXX.XX
		TOTAL	$XXX.XX
19/10/00	KKKKKK WWWWW	STG 3022006838	$XXX.XX
		TOTAL	$XXX.XX

Change to 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 an overall decrease to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice.

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 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 any of the above matters, 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

PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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 payment may be different for one or two paydays after a reassessment.

Listed below are the payment tables showing the different amount of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

Payments to KKKKKK WWWWW

For Pension Payday 5 October 2000

Payments to KKKKKK WWWWW

For Pension Payday 19 October 2000

ATTACHMENTFull Income and Asset Listing

General Information Sheet

Example 3: < Max Rate, Reduction to Nil as a result of MI/SH reassessment, Full Income and Asset Listing