DATE OF ISSUE:   14 February 1996

EXTENSION OF ELIGIBILITY TO CERTAIN PARTNERS OF VETERANS AND DECEASED VETERANS

INTRODUCTION

The purpose of this Departmental Instruction is to provide procedural guidelines and background information on the 1995/96 Budget initiative which extends the eligibility for Partner Service Pension (PSP) in some circumstances to the partners, widows and widowers of non-service pensioner veterans.

BACKGROUND

2.Currently, the partner of a veteran is eligible for PSP only if the veteran is in receipt of an age or invalidity service pension.

3.Likewise, the widow or widower of a veteran is eligible for PSP only if the veteran was in receipt of an age or invalidity service pension immediately before his or her death.

4.Effective from 1 October 1995, eligibility for PSP will be extended to a person if:

• the person qualifies for an age pension from DSS; and

either

• their partner is a veteran with qualifying service but is not yet eligible for service pension;

or

• the person is the widow or widower of a veteran with qualifying service who was not eligible for service pension when he or she died.

5.This extended eligibility does not apply to the non-illness separated spouse of a living veteran with qualifying service who is not yet eligible for service pension.

RATIONALE

6.This change is designed in part to ensure that DVA continues to meet its obligation to provide care and compensation to veterans and their dependants by including the veteran's family in DVA services where possible.

7.Where a deceased veteran had rendered qualifying service but died before being eligible for service pension, their widow(er) on reaching DSS pension age will be eligible to claim PSP.

8.Where a living veteran has qualifying service but is not yet eligible for service pension, their partner on reaching DSS pension age will now be able to come directly to DVA to claim PSP.

9.This will obviate the need for these partners to initially claim a DSS age pension and then transfer to DVA when their veteran partner becomes eligible for service pension.

10.Provisions have also been included to ensure that in these cases any child related payments are directed to the partner service pension recipient.

11.As there are differences in the calculation of pension rates between DVA and DSS, there can be significant advantages for some partners or widow(er)s in claiming service pension from DVA, rather than age pension from DSS.

LEGISLATION

12.The amendments to the VEA were introduced in the Veterans' Affairs (1995/96 Budget Measures) Legislation Amendment Act 1995.  Royal Assent was received on 14 November 1995 giving a commencement date of 1 October 1995.

See Attachment A for a summary of the legislative amendments relating to this initiative.

EFFECT OF DELAY IN ROYAL ASSENT

13.A memorandum detailing instructions for processing impacted cases between the commencement date of these amendments and the date of Royal Assent was forwarded to the State Offices.  (Included in 'On-Line' 34/COMP3; 20/10/95, see Attachment B.)

RELATED LEGISLATION

14.Three related amendments were introduced as part of the same amending Act:

• a minimum age requirement of 50 years for PSP eligibility (DI C — 0 — 5/96 refers);

• ability to retain PSP eligibility in certain circumstances if the veteran ceases to be paid (DI C — 0 — 3/96 refers);

• limiting members of a couple to the partnered rate where only one partner is receiving pension (DI C — 0 — 4/96 refers).

POLICY CHANGES / PROCEDURAL GUIDELINES

Eligibility Criteria

15.Effective from 1 October 1995, a person is eligible for PSP under this initiative only if the person:

• is of pension age and qualifies for age pension from DSS; and

• is a member of a couple with, or is the widow(er) of, a veteran with qualifying service; and

• is otherwise eligible for PSP under section 38 of the VEA.

Qualification for Age Pension from DSS

16.Qualification for age pension from DSS includes:

• an age requirement (ie men who are 65 years or older and women who are 60.5* years or older); and

• a 10 year residency requirement (unless granted refugee status, see DI B04/95).

*Note: As from 1 July 1995, the qualifying age for women will be gradually lifted in 6 monthly steps every two years.  The new age requirements applies to women applicants from this date.

17.For these cases, the DSS Reciprocal Agreement arrangements for offsetting years of residency do not apply.  The rationale for this is based on considerations of equity and consistency.  DVA has no reciprocal agreements with other countries.  Within the VEA, a 10 year residency rule currently applies to all veterans before they are eligible for service pension and a partner cannot be eligible before the veteran is in payment.  With this initiative, where the partner, widow or widower becomes payable before the veteran, the VEA 10 year residency rule will apply to the PSP.

Loss of Eligibility

18.Eligibility for PSP under this initiative is lost if:

• the widow(er) remarries or commences to live in a marriage-like relationship with someone other than the veteran; or

• the partner separates* from or divorces the veteran.

*Note: Eligibility for PSP under this initiative is not extended to a non-illness separated spouse.  If the partner of a non-pensioner veteran permanently separates from that veteran, that partner loses eligibility for PSP and the pension is cancelled.  The non-illness separated spouse will not regain eligibility for PSP until either the couple reunite; or the veteran becomes eligible to receive SP (section 38(1)(b)(ii) as amended applies); or the veteran dies and the widow reaches DSS Age Pension age (section 38(1)(e) as amended applies).

Qualifying Service

Forms:

19.For this initiative, a new form is required and is currently in preparation.  This new form, titled "Qualifying Service Details: Partner/Widow(er) of Non-Pensioner Veteran", is to be used only in conjunction with a claim formal for PSP, Form D504.  This new form should not be used for a general inquiry into qualifying service eligibility by a partner or widow(er), as this would constitute a breach of privacy.

20.Until such time as the new form is approved, current Form D2673 should be used under the same guidelines outlined above.

Application:

21.This initiative introduces for the first time an application for determining qualifying service (QS) where the applicant is not the veteran.  This applicant may be either:

1.A member of a couple who reaches pensionable age before the veteran commences to be paid service pension.

Application for QS in this case would involve, in the first instance, the partner being given, as part of the claim package, Form D2673 "Application to Determine Qualifying Service by a Veteran or Mariner" for completion by the veteran.  If for some reason the veteran is unable to complete the form, the veteran's partner may apply for QS to be determined by completing new form "Qualifying Service Details: Partner/Widow(er) of Non-Pensioner Veteran".

2.The widow(er) of a veteran who died when not in receipt of a service pension.

Application for QS in this case will involve the widow(er) completing new form "Qualifying Service Details: Partner/Widow(er) of Non-Pensioner Veteran".

22.If the person was in a marriage like relationship with a veteran when the veteran died, the person would also be eligible to apply under this initiative.  Normal verification procedures would apply, using current criteria under section 11A VEA, to determine the 'marriage like relationship'.  The delegate's decision would be made on the basis of reasonable satisfaction.  Again, this eligibility is lost if the person marries or enters into a marriage-like relationship with another person after the veteran had died.

Verification:

23.Normal verification and proof of identity requirements apply for determining these cases.

24.As for any application for QS, each case must be considered on its own merits and the delegate's decision made on the basis of reasonable satisfaction.

25.It is expected that the great majority (90%) of these claims will be able to be determined on the basis of the detail on either the D2673 (completed by the veteran) or the new QS form (completed by the partner or widow/er), in conjunction with the veteran's service records.

26.For the remaining 10% of cases where more detail is required to determine QS, current forms D506-D510 will be used, accompanied by a standard letter explaining why further detail is necessary.  This standard letter (see Attachment C) will also request the claimant to provide, where possible, the names and addresses of any people who served with the veteran and who would be willing, if needed, to assist the Department in determining the claim.

27.In cases where there is insufficient information available, from either departmental or archival files, or from the partner or widow(er) to satisfy the delegate that QS was rendered by the veteran as required by the relevant subsection of section 7A VEA, the claim should be rejected with the claimant given normal rights of review.

28.Similarly, in cases where there is insufficient evidence to reasonably satisfy the delegate of a 'marriage like relationship' with the veteran prior to the veteran's death, the claim should be rejected with the claimant given normal rights of review.

PRIVACY AND FOI

29.This initiative has the potential to raise issues concerned with privacy and freedom of information.  It is therefore necessary to be aware of this potential and to ensure proper guidelines are followed when requesting information and when corresponding with the claimants.

30.The Department would be in breach of the privacy provisions if it supplied information in relation to general enquiries regarding a veteran's service.  For this reason an application to determine QS under this initiative will only be considered as part of a formal claim for PSP.

Data Collection

31.Where a partner or widow(er) applies for determination of an Australian veteran's qualifying service for the purpose of claiming a PSP, the Department is not in breach of privacy provisions in seeking service records from the Department of Defence or Archives.  Where the applicant is unable to provide documentation or detail of the veteran's service, the responsibility will lie with this Department to obtain any records that may exist.

32.In the case of a Commonwealth or Allied veteran, different FOI and privacy rules may apply and will need to be dealt with on an individual basis.

Correspondence

Grant of Claim for PSP

33.In granting a claim for PSP under this initiative, it is unnecessary to include any details of the veteran's QS in the advice.  For reasons of privacy therefore, such details should not be included.

Rejection of Claim for PSP

34.If a claim for PSP is declined because the veteran did not render QS, the advice should include the reasons for the rejection.  The claimant's right to natural justice in terms of their right of appeal requires that they know the reasons for rejection.

For example: If a widow submits a statement about her deceased husband's overseas service and our records show that the veteran did not serve outside Australia, the rejection advice should state that;

“According to service records provided to this Department by the Department of Defence (or Archives), the veteran did not serve overseas ....”

35.However, if the claim is rejected for any reason not associated with the veteran's QS, details of the veteran's QS should not be included in the advice.

SYSTEM CHANGES

36.As a result of this initiative, the system will now enable a pension to be paid to a partner when the veteran is not in payment.

37.For a partner of a veteran there will be a new Method of Assessment (MOA) 06.  The rate of pension is calculated at the partnered rate.

38.For a widow(er) of a veteran the assessment method will be MOA 11.  The rate of pension is calculated at the single rate.

Warning message

39.There will be a warning message on the system highlighting the age restrictions.

40.When a grant of PSP is to be made to a partner under DSS Age pension age where the veteran is not receiving SP, the following warning message will be displayed on the PP.SU screen:

PARTNER UNDER QUALIFYING AGE FOR SP.

41.As there are different age restrictions for PSP eligibility depending on the partner's circumstances, there can be no system bar on the granting of PSP under the DSS qualifying age.  It is therefore the Delegate's responsibility to ensure adherence to this rule for these cases.

RATE OF PENSION

42.If the pensioner is a member of a couple, the rate of pension is calculated at the “partnered” rate.  Departmental Instruction C — 0 — 4/96 titled, "Limit Members Of A Couple To The Partnered Rate" refers.

PHARMACEUTICAL ALLOWANCE (PA)

43.Part III of the VEA specifies the rate of PA to be paid to a service pensioner depending on their circumstances. Part VIIA of the VEA specifies the rate of PA payable to a non-service pensioner.  In combination, the legislation requires that:

• when the partner of a veteran with an accepted disability (who is not receiving SP) claims PSP, the partner should receive $2.70 and the veteran should continue to receive $5.40.

44.Currently the system will not pay PA according to the legislation in the above cases.  For members of a couple where only the partner is in receipt of service pension, the partner service pensioner will be paid PA at the rate of $5.40 pf.  Also if, prior to the grant of PSP, the veteran was in receipt of PA with a Disability Pension, the system will remove the PA from the veteran's payment and pay the $5.40 pf with the PSP.  Similarly, if the veteran is granted DP when the partner is in receipt of PSP, the $5.40 pf will be paid with the PSP.

45.This system problem has been discovered as a result of this budget initiative.  A policy decision has been made that these pensioner couples will not be underpaid the legislated amount of PA.  There are no cases currently on the system.  We will be monitoring the situation regularly until there is a system solution.  As cases become apparent, please advise the Policy Implementation Team in South Australia.

ADVICES

46.There should be no impact on advices from this initiative.

47.A standard letter has been developed for use where a partner claims PSP under this initiative but where further information is required to determine the veteran's qualifying service.  (Attachment C refers).  This letter is to be used to accompany one of the Forms D506-D510, whichever is applicable.

48.Attachment D provides questions and answers to assist staff in handling enquiries or replying to correspondence.

DELEGATIONS

49.No new delegations will be required.

ATTACHMENTS

50.The following attachments are provided:

• ALegislative changes

• BOn-Line 34/Comp3: 20/10/95: "Impact re Delay in Royal Assent for Partner Initiatives"

• CStandard Letter: "Further information required to determine QS"

• DQuestions and Answers

ENQUIRIES

51.Any question regarding this DI should be directed to the Policy Implementation Unit, South Australia:

Robyn Del Casale — Assistant Director(08) 213 2321(LAN S-B-PI-1)

Sue Burne — Project Officer(08) 213 2656(LAN S-B-PI-2)

Kathi Ashman — Project Officer(08) 213 2409(LAN S-B-PI-3)

W R MAXWELL

DIVISION HEAD

COMPENSATION

PARTNER INITIATIVES: LEGISLATIVE AMENDMENTS SUMMARY

ITEM	VALAA	Commencement Date
	2.(3)	Veterans' Affairs (1995-96 Budget Measures) Legislative Amendment Act 1995: Effective commencement date on 1/10/95
	VEA	Definitions
10	38(1A)	Defines a disqualifying provision as used in subsection 38(1)
		Application
1	35B(2)	Amends s35B to require people to make a claim if they wish to establish that their veteran partner or their deceased veteran partner had rendered qualifying service.
2	35C(1)(c), 35C(1)(d)	Amends s35C to allow claims by people, or others acting on their behalf,  who want to establish that their veteran partner or deceased veteran partner had rendered qualifying service
		Eligibility
3	38(1)	Amendment makes this subsection subject to new subsection 38(1B)
4	38(1)(a)(ii)	Amended to protect PSP eligibility from the effects of all disqualifying provisions on the payability of the veteran's service pension.
5	38(1)(aa)	Extends eligibility for PSP to include people who would qualify for an age pension from DSS and who are members of a couple with a veteran who has rendered qualifying service.
6	38(1)(b)(ii)	Amended to protect PSP eligibility for a non-illness separated spouse from the effects of all disqualifying provisions on the payability of the veteran's service pension.
7	38(1)(c)(i)	Amended to delete requirement for the deceased veteran to have been in receipt of a service pension immediately prior to his or her death.
8	38(1)(c)(ia)	Extended to protect PSP eligibility for a widow or widower from the effects of all disqualifying provisions on the payability of the deceased veteran's service pension prior to his or her death.
9	38(1)(e)	Extends eligibility for PSP to include widow/ers who would qualify for an age pension from DSS and who were the partner or spouse of a deceased veteran who had rendered qualifying service.
10	38(1B)	Introduces the 50 year minimum age requirement for PSP where there are no dependent children.
10	38(1C)	Qualifies the application of new subsection 38(1B) to exclude from its operation those people under 50 years with no dependent children who, before the date of commencement (1/10/95) were eligible and had submitted a claim which had not yet been determined, or had already been determined to be eligible and their pension has not been cancelled.
10	38(1D)	Qualifies the application of new subsection 38(1B) to exclude from its operation those people whose partner is a veteran to whom section 24 ('Special Rate of Pension') applies.
11	38(3), 38(3A)	Subsequent to item 9, to include its provisons.
		Payability
12 to 59	41(5), 41-B1, 41-C12, 41-D4, 41-D5, 41-F3, 41-F4, 42(4), 42-B1, 42-D12, 42-D16, 42-E4 & E11, 42-G3 & G4, 43(3), 43-B1	Amendments to these sections change the rate calculators in sections 41, 42, and 43 by deleting all reference to “partnered-partner receiving neither pension nor benefit”, to ensure that all members of a couple are paid at the married rate
		Savings Provisions
62	197A	Refers to a set of 'savings and transitional provisions' at Schedule 5 designed to protect existing service pensioners who are members of a couple and are paid at the standard rate.
		Schedules
63	Schedule 5	Details how the savings and transitional provisions operate to protect service pensioners in receipt of the higher rate of pension under the category “partnered-partner receiving neither pension nor benefit” from the effect of the above amendments (items 12 to 59) until the cumulative effect of any changes in their circumstances reduces their 'saved' rate of service pension to the partnered rate.

*Note: Item numbers in first column refer to Schedule 4 of the Veterans' Affairs (1995-96 Budget Measures) Legislative Amendment Act 1995, pp27-33.

ATTACHMENT B

O N   L I N E

20/10/95 Item 34/COMP3

TO: DEPUTY COMMISSIONERS ALL STATES

FROM: R J HAY INCOME SUPPORT COMPENSATION

ISSUE: Impact Re delay in Royal Assent for partner initiatives

ACTION:DATE DUE: AS PER MINUTE

NATIONAL OFFICE DIVISION: COMPENSATION DIVISION, INCOME SUPPORT BRANCH

SUBJECT:IMPACT RE DELAY IN ROYAL ASSENT FOR PARTNER INITIATIVES.

Background

As advised in my earlier LAN messages, the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995 is yet to be introduced into the Senate.  This memo concerns those parts of the Bill which relate to income support initiatives:

①⇩ Minimum age set for certain partner service pension applicants

②⇩ Limit members of a couple to the partnered rate

③⇧ Extension of eligibility to certain partners of veterans and deceased veterans

④⇧ Retention of eligibility when veteran ceases to be paid

⑤⇧ Extension of Commonwealth Seniors Health Card eligibility

⑥⇩ Clarification of qualifying service in regard to Korea for troops based in Japan

⑦⇧ Extension of eligibility for income support supplement to war widow/er spouses of pensioners or supplement recipients

⑧⇧ Recovery of a spouse's overpaid pension from arrears of a veteran's disability pension

Note: ⇧ means the initiative is beneficial.  ⇩ Means not a beneficial initiative.

Action to be taken

2.The delay in passing the Bill has implications for the date of effect of these changes.  Different processes will need to be followed for individual initiatives.

①Current legislation will apply.  That is, claims can be granted for partner service pension even if the partner is under 50 and has no dependent children.

②Current legislation will apply.  The standard rate is payable where only one member of a couple is a pensioner or is claiming pension.  Given that the system changes have already been implemented, staff will need to manually assess any new cases and record them as 'saved' once the legislation takes effect.  Current '04' cases already transferred to manual assessment will continue to be assessed under the pre 1/10/95 rules (ie their rate of pension can be increased or reduced depending on changes in circumstances).

③ & ④Claims can be processed or pension continued under the new rules in anticipation of having the necessary legislative authority in due course.

⑤Claims can be processed (or the card granted automatically when pension is cancelled) under the new rules in anticipation of having the necessary legislative authority in due course.

⑥ & ⑦Current policy will continue to apply.

⑧Current processes continue to apply.

Recording of claims for partner service pension (PSP)

3.From the date the Bill receives Royal Assent, all new measures will apply.  Appropriate action will be initiated to protect any grant of entitlements made between  1 October 1995 and the date the Bill receives Royal Assent.  Further details of this action will be advised when available.

4.Some idea of the number of clients involved will be necessary.  Therefore, any action taken on a case involving a claim for partner service pension or the current '04' assessment type, where there is a "1 October" impact, should be recorded with the file number, for consideration when a decision is being made on what the appropriate action will be.

Follow up

5.I appreciate your assistance and recognise the inconvenience caused by this unavoidable delay.  As soon as any new information is available, you will be advised.  In the interim, if you have any queries please contact:

Robyn Del Casale — Assistant Director(08) 213-2321(LAN   S-B-PI-1)

Sue Burne — Project Officer(08) 213-2656(LAN   S-B-PI-2)

Kathi Ashman — Project Officer(08) 213-2409(LAN   S-B-PI-3)

RJ HAY

BRANCH HEAD

INCOME SUPPORT

ATTACHMENT C

FURTHER DETAILS REQUIRED TO DETERMINE QUALIFYING SERVICE: PARTNER OR WIDOW(ER) APPLICANT

Reference:{Applicant Reference}

Contact:{Contact Name}

Telephone:{Contact Phone}

{Applicant's Name}

{Applicant's Street}

{City} {State} {Postcode}

Dear {Mr/Mrs}{Applicant's Name}

I am writing to you about your application to determine whether your {veteran partner} {deceased veteran partner} rendered qualifying service.

I need to ask you for additional information before it is possible to finalise your application.

Please do your best to complete the enclosed form(s), answering all questions in respect of the veteran.  If you cannot answer all the questions, fill in as much as you can.  This will assist us to determine your application as quickly as possible.

{If possible, could you also provide on the attached page, the names and addresses of any people you know who served with the veteran and who would be willing to assist the Department, if needed, in determining this claim.}

Please return the completed form(s) {with the attached sheet} to this office in the enclosed reply paid envelope within 21 days of this advice.

If you have any questions regarding the above, please contact me on the above telephone number.

Yours sincerely

{Title}

CONTACT VETERANS

{Applicant's Name}

{File Number

The following people served with the veteran and, if needed, are willing to assist the Department in determining this claim.

Name		Address

ATTACHMENT D

QUESTIONS AND ANSWERS

Q1Can a partner, widow or widower of any age apply for a PSP under this change?

A — The partner, widow or widower must meet the current DSS requirements for an age pension, ie age 65 for males and 60.5 for females (subject to age equalisation provisions) and have 10 years residency.

Q2Will the partner be eligible for other allowances?

A — Yes, other allowances are payable at the partnered rate for members of a couple and at the single rate for widow(er)s.  For example, DCAO is payable and will be paid to the partner or widow(er) and Guardian Allowance is payable to the widow.

Q2A widow of a veteran with qualifying service remarries or enters into a marriage-like relationship.  This second partner subsequently dies, is divorced or ceases to be in the marriage-like relationship with the widow.  Can the widow still claim partner service pension in respect of her first veteran partner?

A — No, a partner or widow(er)'s eligibility for partner service pension in respect of the first veteran partner is permanently lost if he or she remarries or enters into a marriage-like relationship.

Q3The widow of a veteran is 54 years of age The veteran had rendered qualifying service but died while still employed, aged 62 years.  He had never claimed a service pension from the Department of Veterans' Affairs.  Is the widow eligible for a partner service pension?

A — No, the widow is not eligible for partner service pension until she reaches DSS age pension age.

Q4Can a non-illness separated spouse apply to have the veteran's QS determined?

A — A person can apply to have the veteran's QS determined only as part of a formal claim for PSP.  As a non-illness separated spouse is not eligible for PSP if the veteran is not yet in receipt of SP, her claim would be rejected.  The reason for her rejection is that she is a non-illness separated spouse, therefore her rejection notification should not include any details of the veteran's QS.

Q5The widow of a veteran is 40 years of age  There are no dependent children.  The veteran had rendered qualifying service but when he died was not in receipt of pension because the couple's combined income and assets had reduced his pension to nil.  Is the widow eligible for partner service pension?

A

(1)The widow is eligible for PSP If:

• the veteran's pension was granted and payable prior to 1 October 1995; and

• the veteran's pension was reduced to nil after 1 October 1995 and was not cancelled under section 56EC; and

either

• the widow was in receipt of pension when the veteran died;

or*

• the widow's pension was reduced to nil after 1 October 1995 and was not cancelled under section 56EC;

Under the rules introduced on 1 October, the partner retains eligibility even when the veteran's service pension was reduced to nil.

* Note: The legislation, as currently amended, excludes a widow(er) who was not in receipt of a PSP when the veteran died because the pension had been reduced to nil as the result of a disqualifying provision (VEA subparagraph (38(1)(c)(ii) applies).  It was not intended that these widow(er)s would not retain eligibility upon the veteran's death as this would introduce an anomaly in our treatment of widows who were reduced to nil because of, for example, a compensation affected pension.  Therefore, until such time as the technical amendment is passed, we will include these widow(er)s within the retention initiative as a policy procedure.

(2)The widow will not be eligible for PSP until she reaches DSS Age Pension age If:

• the veteran's pension was granted and payable prior to 1 October 1995; and

• his pension was reduced to nil before 1 October 1995.

Under the rules prior to 1 October 1995, basic eligibility for PSP was lost when the veteran's service pension was reduced to nil.  Under the new rules, (VEA paragraph (38(1)(e)), the widow is eligible only when she qualifies for DSS age pension.

(3)The widow will not be eligible for PSP until she reaches DSS Age Pension age If:

• the veteran's pension was granted and payable prior to 1 October 1995; and

• his pension was reduced to nil and subsequently cancelled under section 56EC.

There is no change to the rules concerning cancellation; eligibility for PSP and SP is lost when a veteran's service pension is cancelled.  Under the new rules, (VEA paragraph (38(1)(e)), the widow is eligible only when she qualifies for DSS age pension.

(4)The widow will not be eligible for PSP until she reaches DSS Age Pension age If:

• the veteran's pension was granted after 1 October 1995.

Under the rules introduced on 1 October 1995, unless there are dependent children or the veteran is T&PI, a partner must meet the new minimum age requirement of 50 years to be eligible for PSP.  (DI C — 0 — 5/96 refers.)  As such the widow would not have been eligible for PSP when the veteran died and hence VEA paragraph (38(1)(e) applies.  She is eligible only when she qualifies for DSS age pension.

Q6A veteran with QS died aged 50 years.  He and his wife had permanently separated several years prior to his death.  Can the widow apply for PSP when she reaches DSS age pension age?

A — Yes.  Any widow or widower of a veteran with QS may apply under this initiative.  The VEA definition of a widow(er) of a veteran includes those who were a veteran's partner, or who were legally married to a veteran but were living apart from him or her on a permanent basis immediately before the veteran died.  A person who was living in a 'marriage like relationship' with the veteran immediately before the veteran died is also included in the definition of a widow(er), because persons living in a 'marriage like relationship' are included in the definition of a 'member of a couple' and are therefore defined as the veteran's partner.  Eligibility for PSP is lost by the widow is she remarries or enters into a marriage-like relationship with another person after the veteran's death.

Q7If the partner of a non-pensioner veteran is receiving PSP under this initiative, will he/she continue to be eligible if the couple permanently separate?

A — No. Eligibility for PSP under this initiative is not extended to a non-illness separated spouse.  If the partner of a non-pensioner veteran permanently separates from that veteran, that partner loses eligibility for PSP and his/her pension will be cancelled.  The non-illness separated spouse will not regain eligibility for PSP until either the couple reunite; or the veteran becomes eligible to receive SP (paragraph 38(1)(b)(ii) as amended applies), or the veteran dies and the widow reaches DSS Age Pension age (paragraph 38(1)(e) as amended applies).