C09/2003 Guidelines for the Issuing of Obligation and Income/Asset Information with automatic Advices

Purpose

The purpose of this Departmental Instruction is to replace DI C32/99, Guidelines for the Issuing of Obligation and Income/Asset Information with Daily Advices.

Reason for Replacement DI

This instruction

• clarifies conflicting statements in DI C32/99 to make it clear that an advice is always sent following a pensioner initiated review (PIR); and
• updates the summary table (Advice Practices for Automatic Advices - Attachment A) to take into account advice format and content changes implemented since  DI C32/99 was issued.

Income Support Communication Strategy objectives

Income Support's communication strategy aims to:

• Enhance understanding within the veteran community of their rights, benefits and obligations;

• Assist pensioners to comply with their obligations;
• Discourage unnecessary pensioner initiated reviews; and

• Minimise intrusion whilst providing ease of access to information.

Income Support Communication Strategies

Key strategies implemented to achieve these objectives include:

• Simplification of the format and content of the mainframe advice letters to improve the quality of  information provided;

• Development and promotion of the booklet, You and Your Pension as a method for improving pensioners' understanding of their benefits, rights and obligations;
• Development and implementation of a series of fact sheets called DVA FACTS covering a range of DVA benefits and services; and

• Reduction and regulation of the frequency and volume of obligation and income/asset information sent to pensioners.

Rationale for regulating issue of Obligation & Income/Asset information

The practice of frequently sending large amounts of information to remind pensioners of their obligations and inform them of their income/asset details, has resulted in some pensioner confusion rather than improving understanding, and has encouraged excessive notification of unnecessary change of circumstances.

The review program has become increasingly dominated by pensioner initiated reviews, many of which result in no change to the pension rate.  This strategy, to reduce the frequency of sending full obligations and income /asset lists, aims to discourage unnecessary PIRs in order to facilitate the redirection of resources towards more effective risk based department initiated reviews.

The strategy is supported by a Repatriation Commission decision (April 1997) outlining the frequency with which income support pensioners should be provided with full obligations and income/asset details.

Commission Policy -Obligations

Commission policy is that full obligation information is provided:

• To all pensioners at grant;

• To maximum rate pensioners at a minimum interval of once every 5 years;
• To reduced rate pensioners at a minimum interval of once every 2 years; and

• To all pensioners following full departmental review.

The 2 and 5 yearly provision of obligations to pensioners is done via the June mailout when group certificates are issued.

Commission Policy – Income & Asset Details

Commission policy is that full income and asset details are provided:

• To all pensioners at grant;

• To reduced rate pensioners at a minimum interval of once every 2 years;
• To all pensioners following full departmental review; and
• To reduced rate pensioners affected by a global automatic reassessment of managed investments (MI) and/or shares (full MI and/or Share details).

The two yearly provision of full income and asset details to reduced rate pensioners is done via the June mailout when group certificates are issued.

Guidelines for Daily Advices

The following guidelines for issuing obligations and income/asset details with automatic daily advices following pension grant or review were developed in consultation with Income Support Managers.

The guidelines limit the sending of full obligations and/or income and asset details following a pensioner initiated review or a department initiated action.

It is recognised that the guidelines for the provision of income/asset details and obligation information may not always be appropriate and that staff require the flexibility to be able to choose other advice options in order to respond to individual pensioner circumstances.

New Claims

Full obligations and full income/asset details are to be provided upon grant of an income support pension.

For grants of service pension, income support supplement and age pension, obligations are to be suppressed on the PIPS/PC advice screen and the booklet You and Your Pension sent with the advice of grant. (DI C35/98 refers)

Pensioner Initiated Reviews

Pension Variation: Pensioners should only be advised of the items in their assessment that have changed and the related obligations following a PIR that results in a change in rate of payment.  'Partial Income and Assets' and 'Partial Obligations' should be selected on the PIPS/PC advice screen..

Pension Reduction to Nil: Pensioners should only be advised of the items in their assessment that have altered following a PIR that results in a reduction to nil. No obligations are to be sent.

Pension Continuation: An advice is sent but no obligations or income/asset details are included.

Department Initiated Actions

Pension Variation: Pensioners should only be advised of the items in their assessment that have changed and the related obligations following departmental initiated actions which results in a change to the rate of payment (eg, DIAs, Fortnightly Manuals).

Pension Reduction to Nil: Pensioners should only be advised of the items in their assessment that have altered following departmental initiated actions that results in a reduction to nil.  No obligations are to be sent.

Pension Continuation: No advice should be sent

Full Departmental Review

Full obligations and full income/asset details are to be provided after a comprehensive departmental review, which updates all aspects of a pensioner's assessment.  Examples of a full review include targeted reviews and post bereavement reviews.

Summary of Advice Practices

A table summarising the expected advice practices for claims and review processing; and current advice practices for periodic automatic advices is at Attachment A.

Contact

Any queries regarding this instruction  should be referred to Sukey Angeloni

on (08) 9366 8463.

Type of Action

Obligations

Income & Assets

Advice Sent

Daily Automatic Advices

New Claim/ Grant

Full

(Issue You & Your Pension)

Full*

Yes

Pensioner Initiated Review

• Variation
• Reduction to nil

• Continuation

Partial

Nil

Nil

Partial

Partial

Nil

Yes

Yes

Yes

Department Initiated Action

• Variation
• Reduction to nil
• Continuation

Partial

Nil

N/A

Partial

Partial

N/A

Yes

Yes

No

Fortnightly Manual

• Variation
• Reduction to nil

• Continuation

Partial

Nil

N/A

Partial

Partial

N/A

Yes

Yes

No

Full Departmental Review

• Variation
• Reduction to nil
• Continuation

Full

Nil

Full

Full

Full

Full

Yes

Yes

Yes

Periodic Automatic Advices

Obligations

Income & Asset

Frequency

Automatic Fortnightly Manual

• Variation
• Reduction to nil

• Continuation

Partial

Nil

N/A

Partial

Partial

N/A

Following Review

Following Review

No advice sent

Global Advices

(MI/Share refresh)

• Variation
• Reduction to nil

• Continuation

Full

Nil

N/A

MIs & Shares only

MIs & Shares only

N/A

March & Sept

March & Sept

No advice sent

BRI & Super variation Advices

• Variation
• Reduction to nil
• Continuation

Partial

Nil

N/A

Partial

Partial

N/A

Following Review

Following Review

No advice sent

2 & 5 year Obligation Advices

• Maximum Rate Pensioners
• Reduced Rate Pensioners

Full

Full

Nil

Full

5 yearly

2 yearly

*Selection of 'Full Income & Assets' on the PIPS/PC advice screen results in the production of either a complete or a tailored income & asset statement depending on the circumstances of the pensioner.

• Assets tested pensioners and income tested pensioners who are within $10,000 of their asset threshold receive a complete income & assets list detailing all income & assets in the assessment.
• Income tested pensioners who are more than $10,000 below their asset threshold are sent a tailored income & assets list which excludes miscellaneous assets such as vehicles that do not affect the pension rate.