C30/1999 OCTOBER 1999 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH)

DATE OF ISSUE:  20 September 1999

OCTOBER 1999 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH)

Overview

Purpose of instruction

This Departmental Instruction is to provide information about processing arrangements for the October 1999 global refresh advice letter mailout.

Introduction

Every quarter the Department varies pensions and allowances in accordance with provisions contained in the VEA (Statutory Increase or “SI”).  The Consumer Price Index (CPI), the Male Total Average Weekly Earnings (MTAWE) and the Global Refresh of Managed Investments (MI) and Shares (SH) data are usually combined as one quarterly reassessment routine.  Advice letters are usually sent out to all those effected by the variation. This quarter the Department will only be sending advices to those effected by the Global Refresh.  This is due to the 'Date of Effect' (DoE) implementation.

Significant Issues

The October 1999 Quarterly mailout wilI incorporate the following events for pay day 7 October 1999: The asset value of managed investment and share data will be reassessed Loss/Gain of treatment for Services Pensioners (SP) and Age Pensioners (AP) as a result of the reassessment of MI/SH.

Letter Content

Letters

Prior to the issue of this DI, System Support Officers and Managers Income Support were provided with copies of the 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.  Copies of the amended advice letters for this run are at Attachments A, B and C of this DI.

Advice letter Target Audience

A letter will be produced for: All less than maximum rate Service Pensioners (SP), Income Support Supplement recipients (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/AP who move to max rate as a result of the reassessment of MI/SH Loss of treatment for SP and AP as a result of the reassessment of MI/SH.

Income & Asset Listing

Full Income/Asset listings are to be produced.

No Obligations

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

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 has been modified and will contain rates and limits 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.

Production of Advice Letters

Processing

Processing is scheduled to run from Friday evening 17 September until Sunday evening 19 September 1999.  Production facilities will therefore not be available from 2.00 pm local time 17 September 1999 until Monday morning 20 September 1999.

ADP Processing

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

Critical Dates

Test Data to SMS	25 August 1999
Processing Weekend within DVA	18 – 19 Sept 1999
Dispatch of Production data to SMS	19 Sept 1999
Commence Printing Advice Letters	20 Sept 1999
End Printing Advice Letters	24 Sept 1999
Lodgement of Advice Letters	24 Sept 1999

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	7,417
Victoria	6,741
Queensland	4,903
Western Australia	2,308
South Australia	2,521
Tasmania	948

Package Production

Security Mailing Services, Kingsgrove, Sydney will print advice letters and envelope them.  Production of letters is expected to occur over period 20 September to 24 September.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 24 September 1999.  A representative from National Office will notify the time, date and number of letters lodged for each State Office.

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. Enclosures are letters involving a change in treatment eligibility. Each State Office will receive, as always, 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 6289 6729 if the delivered letters do not exactly match the reports.

Reprints of selected letters

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

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 18 –19 September 1999 for pay period 34 (7 October 1999) should be held by State Offices until notification is received that quarterly letters have been dispatched.  This will ensure that pensioner's receive their letters in chronological order.

Manual Cases

To minimise the number of daily letters to be held whilst quarterly letters are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 7 October 1999.  General pensions processing should continue unabated but should be submitted for the subsequent pay day.

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed immediately to the NO contact officer, Tiffany McIntyre.  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 letter lodgment should be referred to: Tiffany McIntyre (02) 6289 6398 (Phone) (02) 6289 6553 (Fax)

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

NOTE:  Advices will only be produced for clients with Shares and/or Managed Investments.

Paragraph	To whom
State specific letterhead	All
Opening	All
Payment details and payment box	All
Change to value of SH and MI products	Cases with MI/SH in assessment
“You have been increased to the maximum rate of service pension”	All increase to max rate cases
Treatment On/Off	Any cases where a change in treatment eligibility is detected
Your Obligations (Reference to previous)	All
Changes You Have Already Told Us About	All
Your Right of Review	All
Closing Paragraph and Signature	All
Full Income/Assets Listing	All
General Information Sheet	All

ATTACHMENT B

OCTOBER PARAGRAPH CONTENT

EXAMPLE 1: Increase to Maximum Rate, MI/SH in assessment, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs_

Contact: T-CONTACT-OFFICER STATE OFFICE

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 Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

Change to value of shares and managed investment products

The asset value of investments you have in listed shares and/or managed investment products has been adjusted to take into account any movements in their value (which fluctuates depending on the market).  The adjusted asset values for these investments has been taken into account by us 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.

You have been increased to the maximum rate of service pension.

Your Obligations

Your obligations have been explained to you in previous letters and are detailed in “You and Your Pension” booklet you have received.  These letters and the booklet, refer to the old notification period of 21 days for changes in your circumstances that may effect your pension.  As of 13 July 1999, the notification period for changes to circumstances that may affect your pension has changed to within 14 days (28 days if you are living overseas or receiving remote area allowance).  Where you see a notification period of 21 days in the booklet in reference to service pension and income support supplement, please read 14 days (28 days if you are living overseas or 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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 decided to apply you must do so within three months of being advised of this variation.  A request for review must be in writing and 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.

Your sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

FULL INCOME AND ASSET LISTING

ATTACHMENT

GENERAL INFORMATION SHEET

EXAMPLE 2: Decrease as a result of reassessment of MI/SH, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs_

Contact: T-CONTACT-OFFICER STATE OFFICE

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 Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

Change to value of shares and managed investment products

The asset value of investments you have in listed shares and/or managed investment products has been adjusted to take into account any movements in their value (which fluctuates depending on the market).  The adjusted asset values for these investments has been taken into account by us 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.

Your Obligations

Your obligations have been explained to you in previous letters and are detailed in “You and Your Pension” booklet you have received.  These letters and the booklet, refer to the old notification period of 21 days for changes in your circumstances that may effect your pension.  As of 13 July 1999, the notification period for changes to circumstances that may affect your pension has changed to within 14 days (28 days if you are living overseas or receiving remote area allowance).  Where you see a notification period of 21 days in the booklet in reference to service pension and income support supplement, please read 14 days (28 days if you are living overseas or 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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 you must do so within three months of being advised of this variation.  A request for review must be in writing and 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

ATTACHMENT

FULL INCOME AND ASSET LISTING

ATTACHMENT

GENERAL INFORMATION SHEET

EXAMPLE 3: Less than Max Rate, Married, Increase, MI/SH in assessment.

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs_

Contact: T-CONTACT-OFFICER STATE OFFICE

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 Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

Change to value of shares and managed investment products

The asset value of investments you have in listed shares and/or managed investment products has been adjusted to take into account any movements in their value (which fluctuates depending on the market).  The adjusted asset values for these investments has been taken into account by us 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.

Your Obligations

Your obligations have been explained to you in previous letters and are detailed in “You and Your Pension” booklet you have received.  These letters and the booklet, refer to the old notification period of 21 days for changes in your circumstances that may effect your pension.  As of 13 July 1999, the notification period for changes to circumstances that may affect your pension has changed to within 14 days (28 days if you are living overseas or receiving remote area allowance).  Where you see a notification period of 21 days in the booklet in reference to service pension and income support supplement, please read 14 days (28 days if you are living overseas or 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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 you must do so within three months of being advised of this variation.  A request for review must be in writing and 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

ATTACHMENT

FULL INCOME AND ASSET LISTING

ATTACHMENT

GENERAL INFORMATION SHEET

ATTACHMENT C

This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the October mailout.  There is a separate GIS for both Income Support Supplement recipients and Age pensioners.

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              $366.50 (per fortnight)

Couples Rate (each)              $305.90 (per fortnight)

INCOME LIMIT

Before Service Pension ReducesCut Off*

Singles Rate$102.00 (per fortnight)$  845.80 (per fortnight)

Couples Rate (each)$180.00 (per fortnight)$1414.40 (per fortnight)

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

ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$127,750$251,750

Couples Rate (combined)$181,500$387,500

Non Home Owner

Singles Rate$219,250$343,250

Couples Rate (combined)$273,000$479,000

These limits 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.

The following Gold Card cut off limits only apply to veterans of the Australian Defence Forces.

INCOME CUT OFF LIMIT FOR GOLD CARD

Singles Rate$251.40 (per fortnight)

Couples Rate (combined)$438.40 (per fortnight)

Add $52.40 per fortnight for each dependent child or student to the age of T-CHILD-AGE.

ASSETS CUT OFF LIMIT FOR GOLD CARD

Home Owner

Singles Rate$152,750

Couples Rate (combined)$224,750

Non Home Owner

Singles Rate$244,250

Couples Rate (combined)$316,250

NOTE: If you are a World War 2 veteran, over 70 years of age, with qualifying service, who served in the Australian Defence Forces, the Gold Card income and asset cut off limits do not apply to you.

DEEMING

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

SinglesCouples

Low Rate — 3% interest up to the — 3% interest up to the

threshold of $30,400 — threshold of $50,600

High Rate — 4.5% interest for the — 4.5% interest for the

remaining balance — 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.

Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more children

Singles Rate$76.00$88.80$100.40

Couples Rate (combined)$71.60$88.80$100.40

Rent Limits (per fortnight)

No children1-2 children3 or more children

Singles Rate$  72.80$  95.60$ 95.60

Couples Rate (combined)$118.40$141.40$141.40

GIFTS

A gift is an asset which is given away without receiving market value of that gift in return.  If you give away more than $10,000 worth of assets in a pension year, the amount above $10,000 will be counted as if it were still your asset for a period of 5 years and may therefore affect your pension.  We will also deem any income on the amount above $10,000 for 5 years.

These rules do not apply to the sale or reduction of assets to meet ordinary or extraordinary expenses such as ongoing living expenses, new appliances, medical expenses, a holiday, home improvements or a new car.

Legislation awating passage through the Parliament proposes that effective from 1 July 2000, the $10,000 gifting limit will be reduced to $5,000 per financial year and will apply to assets given away from1 July 1999.

BOB HAY

BRANCH HEAD

INCOME SUPPORT