C14/2009 September 2009 Statutory Increase, Incorporating 'Secure and Sustainable Pension Reform' Changes:

DATE OF ISSUE:  10 September 2009

September 2009 Statutory Increase, Incorporating 'Secure and Sustainable Pension Reform' Changes:

Letter Production and Mailout

Amends DI No.	NA
Replaces DI No.	NA

Purpose of Instruction

The purpose of this instruction is to provide information about the processing arrangements for the September 2009 Statutory Increase and Global Refresh of Managed Investments (MIs) and/or Shares (SHs) advice letter production and mailout.  This Statutory Increase differs significantly from previous exercises in that changes announced in the May 2009 Federal Budget arising from the Harmer Review will be implemented.  Harmer Review changes are now referred to as Secure and Sustainable Pension Reform. This instruction includes detailed information on changes to advice letters as a result of the reforms.  It also details the associated major mailout to pensioners to explain the reforms.

John Sadeik

National Manager

Income Support

10 September 2009

Overview

Background	Each quarter the Department varies pensions and allowances in accordance with provisions contained in the VEA (Statutory Increase or “SI”).  Each March and September, pension indexation – via movements in the Consumer Price Index (CPI), and/or the Male Total Average Weekly Earnings (MTAWE) – are combined with the Global Refresh of MIs and SHs data into one reassessment routine. In March and September, advice letters are generally sent to only those income support pensioners paid at less than the maximum rate of service pension, income support supplement or age pension who have managed investments and/or shares recorded in their pension assessments and who are affected by the Global Refresh of MIs and/or SHs reassessment.  This typically affects approximately 30,000 households. However, due to the Secure and Sustainable Pension Reform changes which take effect on 20 September 2009, the Department will be writing to all clients in payment of service pension, income support supplement or age pension following the September 2009 processing.  Approximately 220,000 letters explaining changes to pensions and allowances will be sent to income support pensioner households.  This aspect is detailed from page 4 below. Additionally, letters will be sent to a further 148,000 allowance recipients who are not paid an income support pension by this Department in order to explain changes to allowances.  This group includes recipients of disability and war widows pension (only), as well as holders of gold and commonwealth seniors health cards. This aspect is detailed from page 14 below. The advice letters issued will be specially revised versions of the usual 'automatic' advice format.  The advices have been developed to provide clients with detailed information on the changes to their payments, including payment amounts.
Production Processing 10 - 14 September 2009	The automatic processing for the exercise will be conducted from 4.00 PM Thursday 10 September 2009 and is expected to continue through until Monday evening 14 September 2009.  Please note the processing times may run longer than expected due to the extensive changes being implemented. Any pension variations resulting from this exercise will be effective from 20 September 2009 for payday Thursday 24  September 2009.
Overview of Significant Points	Significant points from this exercise include: Secure and Sustainable Pension Reform - The reforms involve major changes to the pension system, including pension increases and a simplified payment structure.  The changes will be reflected in the advice letters issued to all pensioners and card holders to advise of specific changes to payments; Minister's Message – Each advice will have a copy of the Minister's Message which will be provided as a separate insert into each letter sent. Pension Supplement - The current system of telephone allowance, utilities allowance, pharmaceutical allowance and the GST supplement will be replaced by a single pension supplement payable fortnightly; Work Bonus – income support pensioners eligible for the work bonus will be advised that the first $500 per fortnight of their employment income will be assessed at half its value; The asset value of MI and SH data will be reassessed for all clients who have MIs and/or SHs recorded in their assessment; All income support pensioners with MIs and/or SHs recorded in their assessment will receive an MI and/or SH Information Attachment as part of the advice letter providing a full listing of their MIs and/or SHs regardless of what has been reassessed; The Deputy Commissioner signatory for Tasmania has been changed from Scott Weston to Jan Hyde; Telephone Allowance - There will be a paragraph advising eligible clients of their t — elephone a — llowance (TA) payable on 24 September 2009 – clients will be advised that the TA payment on 24 September 2009 is the final payment of quarterly TA; Utilities Allowance - There will be a paragraph advising eligible clients of the utilities allowance (UA) payable on 24 September 2009 – clients will be advised that the UA payment on 24 September 2009 is the final payment of quarterly UA; If a treatment eligibility change occurs as a result of the reassessment an advice letter will be produced; GPO Box 9998 has replaced each state-specific GPO Box in the address block, including the return address for all states; and Allowance Calculator Advices – Changes are being implemented to the Allowance Calculator system to grant, vary and cancel the new seniors supplement and veterans supplement payments, and to issue advice letters accordingly.

Advice Letters to Income Support Pensioners

'Secure & Sustainable Pension Reform' Changes	To ensure income support pensioners are made aware of the changes to pension and allowances, advice letter content will vary to provide client-specific information, including pension payment amounts.  Detailed content information is provided below. 'Mock-ups' of selected September 2009 advices are provided at ATTACHMENT A.
Introduction - Explanation of the Secure and Sustainable Pension Reforms	All clients will receive an introductory paragraph explaining that the changes to their pension and allowances are a result of the Secure and Sustainable Pension Reform announced by the Government in the May Budget, and that changes take affect from 20 September 2009. An important exception is the clients who reside overseas.  It should be noted that only overseas clients whose payment of SP, ISS or AP is reassessed because of MIs and/or SHs revaluation will be sent an advice letter.  The advice letters here will not include general information on the Secure and Sustainable Pension Reform changes, as above.  This is because the changes do not apply to overseas clients, who will continue to receive the GST component of the pension supplement only.  The advices will be similar to the usual Global Refresh of MIs and/or SHs processing advice letters issued previously.
Simplified Income Support Allowances: The Pension Supplement	From 20 September 2009, the way income support allowances are paid will be simplified via payment of a new fortnightly 'pension supplement' which replaces the following allowances: pharmaceutical allowance and GST supplement paid fortnightly; and utilities and telephone allowance paid quarterly.  The pension supplement will show as a fortnightly payability in the payment box for clients who are assessed under the 'new' assessment rules. Please note that if the pension supplement is not listed as a payability in the payment box for a service pensioner then the client is likely to be assessed under the 'transitional', or previous assessment rules [see page 6 below].  The pension supplement component for a transitional client is combined into their service pension or age pension payment.  A note advising transitional clients .....'The amount shown under Service (or Age) pension now includes your allowances.'  will print under the payment box. Clients who reside overseas will receive a GST 'component' only of the pension supplement. This will appear as a separate payability in the paybox, except in 'transitional' assessments where a note will appear under the paybox. Advice letters to ISS clients will not list a pension supplement as a separate payability in the payment box.  This is because the UA and TA 'components' are notionally incorporated into the new ISS ceiling rate, while the GST supplement and PA 'components' are incorporated into the revised war widows pension payment. Seniors concession allowance (SCA) will be replaced also with a new 'seniors supplement' with effect from 20 September 2009.  This subject is covered in detail at page 15 below.
Payment on Payday 24 September – 12 days entitlement under old system	Pensioners are advised that on payday 24 September 2009 they will receive 12 days entitlement under the old assessment rules and 2 days entitlement under the reformed pension system.  Two payboxes are included for 24 September and 8 October 2009. Pharmaceutical allowance will no longer exist from 20 September as it will then become part of the pension supplement payment.  Accordingly, clients will receive 12 days payment of pharmaceutical allowance on payday 24 September and 2 days payment of pension supplement.  From payday 8 October there will be no further references to pharmaceutical allowance in the payment box.
Transitional Provisions	As part of the Secure and Sustainable Pension Reform changes, the income test taper rate will increase to 50 cents from the current 40 cents for every dollar over the income free area.  Similarly, the additional income free area for children will be abolished.  The assets test taper remains at $1.50 for each $1000 over the assets value limits. There are transitional provisions to ensure that no pensioner will be worse off because of the increased income test taper rate.  Those better off under the previous assessment rules will continue to be assessed using them, with the previous taper rate and additional income free area for children continuing to apply.  Work bonus provisions will not apply to 'transitional' clients. There will not be an explanation in the advice letters advising whether pension is assessed under the transitional rules or new rules.  As mentioned above, service pensioners assessed under the transitional rules will not have the pension supplement payment showing as a separate payability in the payment box.
Work Bonus	Clients assessed under the 'new' assessment rules may be eligible for an employment income work bonus.  If applicable, clients will be advised that ...... 'Your income from employment has been reassessed due to the introduction of the work bonus.  Under the work bonus the first $500 a fortnight of your employment income will be assessed at half its value. The total of your fortnightly employment income held in your assessment is $xxx.xx.  The amount of assessable fortnightly employment income after apply the Work Bonus is $xxx.xx.' Pensioners assessed under the transitional rules will not have a work bonus assessment.
Telephone Allowance	Eligible clients will be advised that on payday 24 September 2009 they will also receive their final payment of quarterly telephone allowance.
Utilities Allowance	Eligible clients will be advised that on payday 24 September 2009 they will also receive their final payment of quarterly utilities allowance.
Reassess-ment of MI and SH Data	The asset value of MI and SH data will be reassessed as part of this process.  Pensioners receiving an income support pension with MI and/or SH data recorded in their assessment will receive a paragraph advising them of the reassessment.
Managed Investments and/or Shares Information Attachment	All income support recipients with MIs and/or SHs recorded in their assessment will receive a full listing of all their MIs and/or SHs regardless of which MIs and/or SHs have been reassessed.
Full Income and Assets Attachment	Full listings of all income and assets will not be included.
General Information Sheet	All advice letters will have a General Information Sheet (GIS) generated as part of this exercise.  There will be a separate GIS for clients assessed under the transitional rules and for those assessed under the 'new' rules because different thresholds apply.
Insert – The Minister's Message	All advices will have an insert from the Minister of Veterans' Affairs – The Hon Alan Griffin MP – 'Changes to your Veterans' Affairs payments'.  Please see a sample at Attachment C.
Indexation Information	Clients who are assessed under the new assessment rules will be advised that the method of adjusting pensions has been improved by the creation of a new cost of living index specifically for pensioners.  The pension will be increased by the higher of the Consumer Price Index (CPI) or the new index and compared to average weekly earnings. The new cost of living index specifically for pensioners does not apply to pensions assessed under 'transitional' rules.  Transitional pensioners will receive a sentence simply advising them that their pension has been adjusted in line with movements in the cost of living.
Obligations	Full and Partial Obligations are to be suppressed for all advice letters produced.  Reference will be made to obligations issued to clients in previous letters and in the case of service pension and income support supplement recipients, reference will also be made to obligations provided in the 'You and Your Pension' booklet. The Financial Obligations paragraph, which includes the Prescribed Rates, will be present in the advices for all clients - excluding service pensioners and income support supplement recipients who are reduced to nil.  Age pensioners who are reduced to nil, but eligible for payment of DFISA will receive the Financial Obligations paragraph including their prescribed rates. In addition, all single service pension and single age pension clients will be advised of a new obligation to notify the Department if they are in a same-sex defacto relationship.
Payment Information Attachment	The Payment Information Attachment will be present in all letters.
Right of Review	A right of review paragraph will be present in all letters.
Procedures for Tasmanian  Overseas  Clients' Advices	Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted from the Mailing House.
Blind clients will receive an advice	Blind clients will receive an advice.  However, if one member of a couple is assessed as 'blind', single advices will be produced for both members of the couple.
Pension Reform Enquiry Team Hotline	The general contact telephone number for DVA clients will remain unchanged and continue to be provided in the letterhead.  However,  a special h — otline telephone number -1300 307 901- is also provided in the closi — ng paragraph in all advice letters.  This connects to the Pension Reform Enquiry Team established by the Client Contact Network.  Pensioners can also contact the team via email from the DVA Internet contact page http://www.dva.gov.au/pensionreform.
Treatment Advices to be Checked	Following the September processing the Enclosure (treatment) advice letters will be printed at the nominated printer at each location.  These advices would normally be printed at the IBM Printhub but due to a problem with the printing of quarterly advices at the Printhub we will be printing these directly to your nominated printers. It is suggested that these letters be checked for accuracy, and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs.
Reduction to Nil  Advices to be Checked	Following the September processing any Reduction to Nil advices will be printed at the nominated printer at each location. It is requested that these letters be checked for accuracy, especially where a client is provided with Pension Reform paragraphs advising of new payments, but also advising that pension is reduced to nil.  It is recommended that these clients have a manual letter produced instead.  A Word template more suitable for these clients will be provided to contact officers. Please note that staff are required to include a commonwealth seniors health card (CSHC) claim form, a CSHC fact sheet and reply envelope with all Reduction to Nil advices.
Single & Joint Addressed Letters	All service pensioner and income support supplement recipient couples will receive a joint advice, provided the pensioner addresses are identical, illness separated couples included.  The batch address defaults which determine whether 'single' or 'joint' advices are issued have been aligned with the PIPS PC daily advice defaults.  This means that, where both members of a couple have an identical postal address recorded, a joint advice will be produced. Important note: Staff are reminded when granting Age Pension (or for those clients in a joint assessment who request separate advices), they need to update the mainframe PRODIMS 'Client Correspondence Client Options' (CO.CO) Screen.  This needs to be done prior to the processing run to initiate the client request.  The advice default requests set in CO.CO will override the DOCGEN and PIPS advice rules. Age pensioner couples will therefore receive separate letters providing the advice default request has been set in CO.CO.
Mailout Procedures	The printing of letters is scheduled for the week following DVA processing from Monday 14 September 2009 to Friday 18 September 2009 at the contracted mailing house, SALMAT, located at Mulgrave in Victoria. Please note that all letters are scheduled to be lodged with Australia Post as a national lodgement by close of business on Friday 18 September 2009. Staff will be notified when the letters are to be lodged and if there are any production or lodgement delays.
Expected Numbers	The number of income support letters to be sent nationally is approximately 216,000 based on the recent June 2009 SI mailout statistics.  For reference, the number of mailpacks generated for each location following the June 2009 mailout is listed below:

STATE	NUMBER OF ADVICE LETTERS
NSW & ACT	69,617
VIC	48,656
QLD	49,037
SA & NT	20,782
WA	19,518
TAS	7,678
TAS OVERSEAS	53
TOTAL	215,341

Foreign Pension Refresh Program known as GROOVER

The foreign pension refresh program referred to as 'GROOVER' (Global Refresh Of Overseas Exchange Rates) is a separate processing exercise to the September 2009 Global Refresh processing and is tentatively scheduled to run on the evening of Tuesday 8 September 2009 – prior to the September Global Refresh processing. The effective date of the Foreign Pensions Refresh Run is 20 September 2009 for payday 24 September 2009. Separate Foreign Income advices are produced for clients who have foreign pensions, excluding the British Social Security Pension (type 08), British Official Public Service/Forces pension (type 09) and British Other Income (type 07). Clients whose pension has been varied will receive an advice. Please note that British Other Income (type 07) was previously refreshed as part of GROOVER processing however, following a review of British pensions, the Repatriation Commission approved the adjustment of all sterling payments as part of the uniform exchange rate variation exercises.   British other income (type 07) is now reassessed automatically as part of the British Pensions exchange rate variation processing runs, not as part of the GROOVER processing. Please note that the advice letters produced from this processing will be printed at the IBM Printhub and couriered to each location for posting.

Issues Requiring Staff Action

Enclosure (Treatment Changes) & Reductions to Nil Advice Letters	Enclosure (treatment changes) and Reduction to Nil advice letters will be printed at the nominated printer in each location.  Printer Identification as per state locations is as follows: SA – S116P TAS – T003P WA – W014P VIC – V011P NSW – N604P QLD – Q403P These advices should be checked for accuracy, and reconciled against the reports received by each Office. Contact officers will receive via email a zip file advices report containing details of all advices sent, including enclosure advices. These advices will print at the above named printers immediately following the processing and should be available by start of business on Monday 14 September 2009.
Reduction to Nil  Advices to be Checked	Following the September processing any Reduction to Nil advices will be printed at the nominated printer at each location. It is suggested that these letters be checked for accuracy.  In particular,  please watch for potentially sensitive cases where a client is provided with pensioner reform paragraphs but is also reduced to nil.  A more suitable Word template will be provided to location contact officers for use in this circumstance. Also please note that Reduction to Nil letters should not have the Minister's Insert included in with their letters. Please note that staff are required to include a commonwealth seniors health card (CSHC) claim form, a CSHC fact sheet and an envelope for clients to return the completed form in all Reduction to Nil advices.
ZIP Files of Advice Schedule Reports	A Zip File listing details of all clients who receive an advice will be emailed to the Contact Officers during the week following the processing run.  The Zip File replaces the Advices Schedule Report, which is too large to print on the printers in each location.
Reprints of Advices Available using VIEW – Advices Tab	Reprints of individual advice letters produced from the quarterly processing can be requested via VIEW - Advices Tab reprint facility.  Quarterly advice reprints are available and can be requested from day one of the next quarter i.e., March quarterly advices from 01/04/yyyy, June quarterly advices from 01/07/yyyy and September quarterly advices from 01/10/yyyy.
'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 each respective location's nominated printer as part of the production processing. Please ensure your designated printer is fully operational during the processing period.  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 on the weekend of 12 - 13 September 2009, should be held pending notification that the September 2009 quarterly letters have been dispatched.  This will ensure that pensioners receive their advice letters in chronological order.

Allowance Calculator Advices - Overview

Allowance Calculator Advices	As part of the Secure and Sustainable Pension Reform, two new supplements are to be introduced for non-income support clients: veterans supplement and seniors supplement.
Allowance Calculator Advice Mailout	Following September 2009 SI processing, the Allowance Calculator program will automatically generate advices for clients who have had their PA cancelled following the SI processing.  Clients who are eligible for payment of seniors supplement and veterans supplement will receive an advice telling them they are now in payment of these supplements.  It is expected that there are approximately 148,000 clients who will receive an Allowance Calculator advice following the processing exercise. Allowance Calculator advices are scheduled to be generated in two batches.  On 12 and 13 September 2009 grants of veterans supplement will be processed, with advices scheduled to be lodged with Australia Post on Friday 18 September 2009. On 19 and 20 September 2009 grants of seniors supplement will be processed, with advices scheduled to be lodged with Australia Post by Friday, 25 September 2009. Staff will be notified lodgement is confirmed and if there are any production or lodgement delays.
The Veterans Supplement	Non-income support clients (disability pensioners, war widow/ers and white/gold/orange card holders) currently in receipt of PA and/or TA will receive a new payment: 'veterans supplement' (VS).  This will be paid fortnightly and have two levels – one to replace PA only (or TA in the case of war widow/ers) and another to replace PA and TA.  The VS is paid where a DVA pensioner would otherwise miss out on the equivalent of TA and/or PA in the transition to the new supplements. Please see Attachment B for samples of the Allowance Calculator mock-up advices. After the SI processing exercise, the Allowance Calculator will be triggered on a daily basis by applications changing eligibility criteria to determine and set up payability of veterans supplement as required for new grants and cancellations.  This will also produce an advice letter, although further work is required to include arrears and overpayment information.
The Seniors Supplement	The seniors supplement will be payable to commonwealth seniors health card (CSHC) and DVA gold card holders, replacing the seniors concession allowance and telephone allowance currently received by these veterans and dependants. After the SI processing exercise, the Allowance Calculator will be triggered on a daily basis by applications changing eligibility criteria to determine and set up payability of seniors supplement as required for new grants and cancellations.  This will also produce an advice letter, although further work is required to include arrears and overpayment information.
Income Support Contact Officers	A contact person from each state location is required to act as a liaison point for the Systems, Cards and Advices Team. The Income Support contact officers for the September 2009 quarterly processing exercise are: NSW – Peter Rajaratnam VIC – Greg Heitsch QLD – Steve Jensen SA – Scott Sandercock WA – Michelle Pauly TAS – Bryon Kelly
Printing of Letters	SALMAT BusinessForce located in Mulgrave, Victoria, will print, fold and insert advice letters for both the September SI processing and Allowance Calculator processing from Tuesday, 15 September 2009 through until Friday, 18 September 2009.
September 2009 SI - Letter Content	Details of the proposed content of the letters, including sample letters and sequencing of paragraphs are included in Attachment A.   Please note each advice will have a General Information Sheet (GIS). Attachment A – Paragraph sequencing and Advice Letter Examples: The scenario that each advice represents has been marked at the top of each advice.  It should be noted that payment rates quoted in the pay boxes are estimations and have been inserted for illustrative purposes only. Example 1A – Advice sample of client assessed under 'n — ew' r — ules – J — oint s — ervice p — ensioner couple - C — lients have Managed Investments/Shares and a w — ork b — onus; Example 2B – Advice sample of single service pensioner client assessed under the 'old', or t — ransitional, r — ules – client does not have Managed Investments/Shares; Example 3C – Income s — upport s — upplement  - Advice sample of client assessed under the 'new' rules – C — lient does not have Managed Investments/Shares; and Example 4D – Advice sample of client assessed under the 'new' rules – Client resident overseas – Client has Managed Investments/Shares.
Allowance Calculator – Batch Advice – Letter Content	Details of the proposed content of the Allowance Calculator letters, including sample letters and sequencing of paragraphs are included in Attachment B. Example 1 – Advice sample of veterans supplement – Low rate; Example 2 – Advice sample of veterans supplement – High rate; Example 3 – Advice sample of seniors supplement.
Variables	Please note, in the enclosed examples: Letterhead, DC names and signature block will change according to State; and The words “service pension”, “age pension” and “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension.
Contact	Should you have any questions regarding the advices information please contact Pat Webb on 02 9213 7288 or Anissa Lam on 02 9213 7169.

ATTACHMENT A

EXAMPLE 1A  – Advice sample of client assessed under New Rules – September 2009 Statutory Increase mailout:

• Less than Maximum rate clients – assessed under the NEW RULES ie non transitional
• Client has MIs/SHs in assessment
• Service Pensioners - Partnered Assessment
• Income Tested with Work Bonus
• Telephone Allowance in Payment
• Utilities Allowance in Payment
• General Information Sheet - Yes

GPO Box 9998, Brisbane QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)              Postal Address:

JOHN SMITH              GPO Box 9998

MARY SMITH              Brisbane   QLD  4001

29 MARGARET STREET

IPSWICH   QLD   4010              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

The payment you receive on 24 September will include 12 days entitlement under the old system and 2 days entitlement under the reformed pension system.  Your payment on 8 October will be your first full payment under the new system.

The pension reforms will change and simplify the way pensions are calculated and paid, however none of the changes by themselves will result in your rate of payment reducing.  An increase in the value of your income or assets could reduce the rate of pension paid to you.

If you want to know more about all the changes to the pension system please refer to the enclosed message from the Minister or recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

The Pension Supplement

From 20 September 2009, the way income support allowances are paid will be simplified.  A new pension supplement will combine all the allowances and will be paid fortnightly.

The pension supplement includes the value of the fortnightly pharmaceutical allowance and GST supplement, and the quarterly instalment of utilities allowance, the telephone allowance (internet rate), plus an additional amount.  You will be paid all these components regardless of whether you were entitled to them previously.

As a couple your additional supplement will be $20.30 per fortnight (combined).

The method of adjusting pensions has been improved by the creation of a new cost of living index specifically for pensioners.  Your pension will be increased by the higher of the Consumer Price Index or the new index and then compared to average weekly wages.

Work Bonus

Your income from employment has been reassessed due to the introduction of the work bonus.  Under the work bonus the first $500 a fortnight of your employment income will be assessed at half its value.

The total of your fortnightly employment income held in your assessment is $XXX.XX.  The amount of assessable fortnightly employment income after applying the Work Bonus is $XXX.XX.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your pension payment and has resulted in an increase to the amount of pension paid to you.  The value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of pension you are paid.

Telephone Allowance

The final payment of quarterly telephone allowance will be paid to you on  24 September 2009, together with your pension payment.  Your telephone allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $XX.XX (telephone only)

$XX.XX (telephone with home internet)

Couples Rate (each) - $XX.XX (telephone only)

$XX.XX (telephone with home internet)

Utilities Allowance

The final payment of quarterly utilities allowance will be paid to you on 24 September 2009.  The utilities allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current rates of utilities allowance are:

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

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.  This normally takes no more than 4 weeks.

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 decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009VeteranPartner

Payment for 8 October 2009VeteranPartner

Please Note:  If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 13 September 2009)

You are receiving service pension at less than the maximum rate payable.

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset values of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments have been automatically updated.

The asset values of any unlisted public company shares, overseas shares, options, rights and futures or account based managed investments you hold have not been updated.  You must tell us if the asset value of these investments has varied by $1,000 or more.

The information below sets out the values for the shares and/or managed investments in your current assessment.

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
XXXXXX	X,XXX	$XX,XXX.XX
QQQQQQQQQQQQQ	XXX	$    X,XXX.XX

Managed Investments

Description	Units	Asset Amount
VVVVVVVVVV	XX	$XX.XX
CCCCCCCCCCCCC	XXX	$XX.XX

Note: Income from financial assets is deemed.

Important Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed.  Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.

This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the September 2009 mailout.  There is a separate GIS for income support supplement and age pension recipients. Production printing of the GIS is restricted to one sheet – two images.  Please note there is separate GIS for Transitional and New assessments.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

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

MAXIMUM RATES OF SERVICE PENSION (including pension supplement)

Singles Rate$XXX.XX (per fortnight)

Couples Rate (each)$XXX.XX (per fortnight)

PENSION INCOME LIMIT (per fortnight)

At which Service Pension reduces — Cut Off*

Singles Rate$XXX.XX                                                                 $X,XXX.XX

Couples Rate (combined)$XXX.XX                                                                 $X,XXX.XX

These limits may increase if rent assistance is payable.

PENSION ASSETS LIMIT

At which Service Pension reduces — Cut Off*

Home Owner

Singles Rate$XXX,XXX                                                      $XXX,XXX

Couples Rate (combined)$XXX,XXX                                                      $XXX,XXX

Non Home Owner

Singles Rate$XXX,XXX                                                     $XXX,XXX

Couples Rate (combined)$XXX,XXX                                                     $XXX,XXX

These limits may increase if rent assistance is payable.

NOTE: *Income and assets limits do not apply to blinded service pensioners.

GOLD CARD INFORMATION

The Gold Card income and assets limits shown below apply if you receive a disability pension below 50% of the general rate and you also receive an amount of service pension.  Should your assessed income or assets exceed these limits you will no longer be eligible for the Gold Card.

The Gold Card income and assets limit shown below do not apply if:

• your disability pension is above 50% of the general rate and you also receive an amount of service pension (including pension supplement).  Should your service pension cease due to excess income and assets, you will no longer be eligible for a Gold Card;
• you receive a disability pension at 100% of the general rate, Intermediate rate, EDA or TPI; or
• you are aged 70 years or over and you are a veteran who served in Australia's Defence Force and have qualifying service from any conflict or you are an Australian Mariner with qualifying service from World War II.

GOLD CARD INCOME AND ASSETS CUT OFF LIMITS

The treatment benefits income and assets limits apply to you if you are an Australian veteran or mariner whose eligibility for the Gold Card is dependent solely on your service pension payment.

INCOME

Singles Limit              $XXX.XX (per fortnight)

Couples Limit (combined)              $XXX.XX (per fortnight)

ASSETS

HomeownerNon Homeowner

Singles Limit$XXX,XXX$XXX,XXX

Couples Limit (combined)$XXX.XXX$XXX,XXX

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.  Rent assistance is not payable if you reside in a government funded (approved) nursing home, or in government funded housing.

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, any disability pension received is counted as income and may reduce the rate of rent assistance payable to you or your partner.

Maximum Amount of Rent Assistance Payable (per fortnight)

Singles Rate$XX.XX

Couples Rate (combined, no children)$XX.XX

Rent Limits (per fortnight)

Singles Limit$XX.XX

Couples Limit (combined, no children) $XXX.XX

GIFTING

A gift is an asset which is given away or disposed of without receiving the market value of that gift in return. A gift may be either a cash amount or non cash assets such as a car or other property.

You must notify us if you give away a total of $10,000 or more in a tax year or $30,000 over a rolling five-year period.

The amount above either limit will continue to be counted as if it were still your asset for a period of 5 years and may therefore continue to affect your pension.  We will also deem income on the value of any gift above either limit for 5 years.

EXAMPLE 2 B – Advice sample of client assessed under the 'old' or Transitional Rules – September 2009 Statutory Increase mailout:

• Less than Maximum rate client – assessed under the TRANSITIONAL RULES ie old assessment
• Client has NIL MIs/SHs in assessment
• Service Pensioner -Single Assessment
• Income Tested - Work Bonus does not apply
• Telephone Allowance not in Payment
• Utilities Allowance in Payment
• General Information Sheet - Yes

GPO Box 9998, Brisbane   QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)              Postal Address:

PETER CLARK              GPO Box 9998,

33 JONAS PLACE              Brisbane   QLD 4001

TOOWOOMBA  QLD 4013              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mr CLARK,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

The payment you receive on 24 September will include 12 days entitlement under the old system and 2 days entitlement under the reformed pension system.  Your payment on 8 October will be your first full payment under the new system.

The pension reforms will change and simplify the way pensions are calculated and paid, however none of the changes by themselves will result in your rate of payment reducing.  An increase in the value of your income or assets could reduce the rate of pension paid to you.

If you want to know more about all the changes to the pension system please refer to the enclosed message from the Minister or the recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

Simplified Allowances

From 20 September 2009, the way allowances are paid will be simplified.  Your new pension includes the value of the fortnightly pharmaceutical allowance and GST supplement, and the quarterly instalment of utilities allowance and telephone allowance (internet rate), plus an additional amount.  You will be paid all these components regardless of whether you were entitled to them previously.

Your pension has also been adjusted in line with movements in the cost of living.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Utilities Allowance

The final payment of quarterly utilities allowance will be paid to you on 24 September 2009.  The utilities allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current rates of utilities allowance are:

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

In addition, if you are in a same-sex de facto relationship you are required to tell DVA to ensure that you continue to receive the correct payment.  If you are overpaid because you have not told us that you are in a same-sex relationship, you may have to pay back some or all of your payment.

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.  This normally takes no more than 4 weeks.

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 decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009Veteran

Payment for 8 October 2009Veteran

The amount shown under Service Pension now includes your allowances.

Please Note:  If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.

EXAMPLE 3C – Income Support Supplement  - Advice sample of client assessed under the NEW rules i.e., non-Transitional Rules – September 2009 Statutory Increase mailout:

• Income Support Supplement – Ceiling rate– assessed under NEW RULES i.e., Not  – old transitional rules.
• NIL MIs/SHs In Assessment
• Income Support Supplement – Single Assessment
• Telephone Allowance in payment
• Utilities Allowance in Payment
• Income Tested
• GIS - Yes

GPO Box 9998, Brisbane   QLD   4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)              Postal Address:

DAPHNE MORRIS              GPO Box 9998,

3 CLEVER STREET              Brisbane   QLD   4001

IPSWICH   QLD  4010

              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX666666

Dear Mrs MORRIS,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

The payment you receive on 24 September will include 12 days entitlement under the old system and 2 days entitlement under the reformed pension system.  Your payment on 8 October will be your first full payment under the new system.

The pension reforms will change and simplify the way pensions are calculated and paid, however none of the changes by themselves will result in your rate of payment reducing.  An increase in the value of your income or assets could reduce the rate of pension paid to you.

If you want to know more about all the changes to the pension system please refer to the enclosed message from the Minister, or recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

Changes to War Widow/er's Pension and Income Support Supplement

Your War Widow/er's Pension will increase by $60.00 per fortnight in addition to normal indexation that is applied in September of each year.

The payment of your Pharmaceutical allowance has been simplified.  Under the new system it will be included as an extra amount in your War Widow/er's Pension.

The Income Support Supplement ceiling rate has also been increased.  This increase is made up of quarterly utilities allowance and telephone allowance (internet rate) which will now be paid fortnightly.  This is regardless of whether you were eligible for them previously.  There is also an additional increase of $4.98 per fortnight.

The method of adjusting pensions has been improved by the creation of a new cost of living index specifically for pensioners.  Your pension will be increased by the higher of the Consumer Price Index or the new index and then compared to average weekly wages.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Telephone Allowance

The final payment of quarterly telephone allowance will be paid to you on  24 September 2009, together with your pension payment.  Your telephone allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $XX.XX (telephone only)

$XX.XX (telephone with home internet)

Couples Rate (each) - $XX.XX (telephone only)

$XX.XX (telephone with home internet)

Utilities Allowance

The final payment of quarterly utilities allowance will be paid to you on 24 September 2009.  The utilities allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current rates of utilities allowance are:

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

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.  This normally takes no more than 4 weeks.

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 decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009

Payment for 8 October 2009

Please Note:  If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.

EXAMPLE 4D –Advice sample of client assessed under the NEW rules i.e., non-Transitional Rules – September 2009 Statutory Increase mailout  - Client resident Overseas:

• Less than maximum rate client – assessed under NEW rules i.e., non transitional rules
• Client has an Overseas Residential address
• MIs/SHs in assessment
• Service Pensioners
• Partnered Assessment
• Income tested
• NIL Telephone Allowance
• NIL Utilities Allowance
• GIS – NO

GPO Box 9998, Brisbane   QLD   4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

              Postal Address:

JEFFRY JACKSON              GPO Box 9998,

MARJORY JACKSON              Brisbane   QLD   4001

21 OXFORT STREET              Telephone:

LONDON S2 W3 UK              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs JACKSON,

This is to advise you that your pension has been increased.  This change will take effect from 20 September 2009.

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your pension payment and has resulted in an increase to the amount of pension paid to you.  The value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all of your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of pension you are paid.

The method of adjusting pensions has been improved by the creation of a new cost of living index specifically for pensioners.  Your pension will be increased by the higher of the Consumer Price Index or the new index and then compared to average weekly wages.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

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.  This normally takes no more than 4 weeks.

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 decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009VeteranPartner

Payment for 8 October 2009VeteranPartner

Please Note:  If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 13 September 2009)

You are receiving service pension at less than the maximum rate payable.

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset values of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments have been automatically updated.

The asset values of any unlisted public company shares, overseas shares, options, rights and futures or account based managed investments you hold have not been updated.  You must tell us if the asset value of these investments has varied by $1,000 or more.

The information below sets out the values for the shares and/or managed investments in your current assessment.

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
XXXXXX	X,XXX	$XX,XXX.XX
QQQQQQQQQQQQQ	XXX	$    X,XXX.XX

Managed Investments

Description	Units	Asset Amount
VVVVVVVVVV	XX	$XX.XX
CCCCCCCCCCCCC	XXX	$XX.XX

Note: Income from financial assets is deemed.

Important Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed.  Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.

ATTACHMENT B

ALLOWANCE CALCULATOR – ADVICE MOCKUPS

EXAMPLE 1 – Veterans Supplement – VS low Rate (TA) – Batch advice following implementation processing. THIS ADVICE IS SPECIFICALLY FOR A WAR WIDOW –NO ISS under pension age.     A war widow can't have VS high rate because the PA is added to the WWP

GPO Box 9998, Brisbane QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

              Postal Address:

              GPO Box 9998

MARY SMITH              Brisbane   QLD  4001

29 MARGARET STREET

IPSWICH   QLD   4010              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mrs SMITH,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

The payment you receive on 24 September will include 12 days entitlement under the old system and 2 days entitlement under the reformed pension system.  Your payment on 8 October will be your first full payment under the new system.

If you want to know about all the changes to the pension system please refer to the enclosed message from the Minister, or recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

Changes to War Widow/er's Pension

Your War Widow/er's Pension will increase by $60.00 per fortnight in addition to normal indexation that applies in September of each year.

The payment of your Pharmaceutical Allowance has been simplified.  Under the new system it will be included as an extra amount in your War Widow/er's Pension.

The Veterans Supplement

From 20 September 2009, a new fortnightly veterans supplement will replace fortnightly pharmaceutical allowance and or quarterly telephone allowance.

You will be paid veterans supplement at the rate of $6.00 a fortnight.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009

Payment for 8 October 2009

EXAMPLE 2 – Veterans Supplement – VS High Rate (PA & TA) – Batch Advice following implementation processing. THIS ADVICE FOR DP ONLY CLIENT NOT WAR WIDOW TPI or EDA or S27(2)item 1-8 under veteran pension age not on income support

GPO Box 9998, Brisbane QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

              Postal Address:

              GPO Box 9998

GEOFFREY JONES              Brisbane   QLD  4001

63 GEORGE STREET

BRISBANE   QLD   4010              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mr JONES,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

The payment you receive on 24 September will include 12 days entitlement under the old system and 2 days entitlement under the reformed pension system.  Your payment on 8 October will be your first full payment under the new system.

If you want to know more about all the changes to the pension system please refer to the enclosed message from the Minister, or recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

The Veterans Supplement

From 20 September 2009, a new fortnightly veterans supplement will replace fortnightly pharmaceutical allowance and quarterly telephone allowance.

You will be paid veterans supplement at the rate of $12.00 a fortnight.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is 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.

Payment for 24 September 2009

Payment for 8 October 2009

EXAMPLE 3– Seniors Supplement – Batch advice following implementation processing. THIS ADVICE FOR CSHC HOLDERS & DVA Gold Card holders.  To be sent to both single and joint clients.

GPO Box 9998, Brisbane QLD  4001

Contact:              Brisbane Office

Telephone: Bank of Queensland Centre

              259 Queen Street

              Brisbane Qld 4000

              Postal Address:

              GPO Box 9998

SIMON CRAB              Brisbane   QLD  4001

34 BONYTHON CRESCENT

BRISBANE   QLD   4010              Telephone:

              Capital city callers: 133 254

              Non-Capital city callers: 1800 555 254

              Facsimile: (07) 3223 8479

              13 September 2009

              YOUR FILE NUMBER IS QX123456

Dear Mr CRAB,

This is to advise you of the changes to your pension and allowances as a result of the Secure and Sustainable Pension Reform package announced by the Government in the May Budget.  These changes begin to take effect from 20 September 2009.

If you want to know more about all the changes to the pension system please refer to the enclosed message from the Minister, or recent editions of Vetaffairs newspaper or refer to the internet at www.dva.gov.au/pensionreform.

The Seniors Supplement

Following your payment on 24 September 2009, a new quarterly seniors supplement will replace seniors concession allowance and telephone allowance.  You will receive the full rate of seniors supplement whether or not you are a telephone subscriber.

The final payment of quarterly seniors concession allowance will be paid to you on 24 September 2009.  The current payment is:

Singles Rate: $130.50

Couples Rate (each) : $130.50

The next quarterly payment of seniors supplement to be paid in December will be paid at the following rate:

Singles Rate: $196.30

Couples Rate (each):$148.20

The Department has set up a special hotline should you have any questions about the information contained in this letter.  You can call this hotline on 1300 307 901 or email us from our internet contact page www.dva.gov.au/pensionreform.

For all other enquiries, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENT C

The Hon Alan Griffin MP

Minister for Veterans' Affairs

Federal Member for Bruce

Changes to your Veterans' Affairs payments

As part of the 2009-10 Federal Budget presented on 12 May 2009, the Australian Government announced a number of changes to Australian pension payments. These changes form part of the Secure and Sustainable Pension Reform package and are in response to the findings of the Harmer Pension Review.

Overleaf is information about each of the measures commencing from 20 September 2009.  Please take the time to read this material so that you will understand the changes to your pension.  The letter addressed to you is more specific to your circumstances.

You don't have to do anything to make these changes happen for you.

It was a clear finding of the Harmer Review that single pensioners on income support are suffering in comparison to couples and so that is why the Government has concentrated the increase in pension for single service pensioners and war widow/ers.

If you would like to ask any questions, please call Veterans' Affairs on 1300 307 901.

Yours s — incerely

Alan Griffin

Minister for Veterans' Affairs