C13/1997 MARCH 1997 ADVICE MAILOUT

DATE OF ISSUE:  7 March 1997

MARCH 1997 ADVICE MAILOUT

Purpose of instruction

This Departmental Instruction is to provide information about processing information for the March quarterly advices.

MURRAY HARRISON

BRANCH HEAD

INCOME SUPPORT

Background

Introduction

The department's quarterly advices facility has been designed to enhance communication between the Department and the veteran community.  In general, quarterly advices are sent in January, March, June and September of each year.  Advices are sent to income support pensioners.  The size of the mailout is dependent on the issues (eg. Budget changes, pension indexation, etc) current at the time.

A/L Events

The March Quarterly Advice mailout will incorporate the following events for pay-day 27 March 1997: pension indexation rent assistance and rent thresholds indexation global refresh; telephone allowance $2000/$4000 deeming; and saved rent assistance.

Processing sequence

An advice is to be produced for: all less than maximum rate SP/ISS clients; maximum rate SP/ISS clients with saved RA; maximum rate SP/ISS clients with less than maximum rate RA.

Obligations

Obligations are to be suppressed for all advices produced.

Income and Asset listings

Full Income - Asset listings are to be produced only for clients who have either shares or managed investments listed.

Production

The reassessment processing run and advice production will be conducted on the weekend of 9/10 March 1997.  No fortnightly run for deprived assets and Profit Fort will be done prior to the weekend quarterly advice run and will therefore not impact on the transactions generated for the quarterly advices run.  The major reassessment program ("BAL") will be run to reassess cases affected by any of the events above.  Detailed ADP processing requirements will be sent separately to State System Support Officers.

Rules for Processing

Advices

System support and advice contact officers in each state have been provided with copies of the advice mock up and variations paragraphs.

Payment processing

The payment processing is scheduled from Friday evening 6 March till Sunday evening 8 March 1997.  A processing timetable appears later in this instruction.

Pensioners for Whom an advice will be generated

Affected clients

A quarterly advice is to be produced: where a less than maximum rate service pension, less than maximum rate income support supplement (less than ceiling rate of $120.10) and/or, rent assistance is varied as a result of indexation.  The advice may include other relevant paragraphs, such as treatment eligibility and saved rent assistance

Continuation Advices

For continuation advices, an explanation paragraph has been included to clarify the fact that the reassessment of deemed income equals the CPI increase and has resulted in no change to the rate of pension paid.  Payboxes will not be included in these advices, except in cases where telephone allowance is payable, these advices will include a paybox. State offices have been supplied with the paragraph wording for these continuation cases.

Client numbers

The estimated number of advices for this run is approximately 75,000

Advice printing

Two sites for quarterly advice printing will be used due to the size of this run.  The data, which is to be supplied on cartridge for NSW and VIC will be printed at Leigh Mardon (Melbourne).  The data for the rest (QLD, SA WA and TAS), which will be supplied on cartridge, will be printed at Lane Bros (Adelaide).

Special register

Special register and overseas advices will be supplied to the mailing houses on separate cartridges and forwarded to the relevant state office.

Components for the mailout

Quarterly advice processing

A quarterly advice will be produced for less than maximum rate service pensioners and less than maximum rate income support supplement pensioners affected by indexation. The range of paragraphs, the circumstances under which these will be applied and the paragraph wording have been supplied to state contact officers.

Advices - General

ADP Processing

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

Timetable

Key time frames of advices are summarised below.  The first processing run will begin on the evening of Friday 7 March 1997.

Daily Advices

Holding of Daily advices

Cases processed in advance for day 1 of 27 March 1997 should have the daily advice dispatched prior to the quarterly advice being sent. Daily payment advices produced after the processing run on 8/9 March 1997 for pay period 20 (27 March 1997), should be held by State Offices until confirmation is received from the quarterly advices project officer in National Office to release such advices.  This will ensure that pensioners who have pension variations processed for payday 27 March 1997 will receive their daily advice after the quarterly advice rather than in advance of it.

Manual cases

To minimise the number of daily advices to be held whilst quarterly advices are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 27 March 1997.  General pensions processing should continue unabated but should be submitted for the subsequent pay day.

Dispatch of Quarterly Advices

Advice lodgement

The quarterly advices will be progressively lodged with Australia post by the mailing houses in Melbourne and Adelaide, during the period 15 March 1997 to 21 March 1997.  As soon as state's advices have been lodged, the project officer will advise the appropriate state contact officer.

Reprint of selected advices

Any requests for reprints of individual quarterly advices should be referred to state office system support officers.

Contacts

The national office contacts for this quarterly advice run are as follows; Advice wording and paragraphs (Integrated Advices); Tracey Cunningham (06) 289 6398 A/L Cartridge and mailing house queries; Murray Chynoweth (06) 289 6799 Danielle Moloney (06) 289 6681

Insert

The Australian War Memorial are including a one page A4 insert with this mailout.  The insert is asking the veteran community to “Keep The Spirit Alive”, by becoming a Friend of the Memorial, making a donation or by leaving a bequest in their will. This insert includes a coupon listing member and/or subscriber costs which is to be completed and returned to the Australian War Memorial Foundation.

Advice Mockups

Advice mockups

Attached are mockups of the advice letters. Mock up 1:   Single veteran, maximum rate SP, reduced rate RA, indexation, deeming changes, TA paid, no MIs/shares. Mock up 2:   Pensioner couple, maximum rate SP, saved RA, indexation, deeming changes, saved RA update, TA paid, no MIs/shares. Mock up 3:...War Widow, reduced rate ISS, indexation, deeming changes, TA paid, global, has MIs/shares. Mock up 4:...Pensioner couple, reduced rate SP - reduction to nil, indexation, deeming changes, global, has shares, no other payment.

Mock up 1

SINGLE VETERAN, MAX RATE SP, REDUCED RATE RA

INDEXATION, DEEMING CHANGES, TA PAID

NO MIs/SHARES

							Commonwealth Department of Veterans' Affairs
						STATE OFFICE
							AMP Place
							10 Eagle Street
							Brisbane QLD
							Postal Address:
	SEYMOUR PLANET						GPO Box 651 Brisbane  QLD  4001
	43 VENEZIA AVENUE
	ROMA  QLD  4455						Telephone:
							Metropolitan residents:  (07) 3223 8333
							Country residents:   1800 113304
							Interstate residents: 1800 777634
							Facsimile:  (07) 3223 8585
							10 March 1997
	_
							YOUR FILE NUMBER IS QX321546

Dear Mr Planet

I am writing to you about your pension payment from Veterans' Affairs.

Indexation of Pensions

Service pensions, income support supplement, disability pensions, rent assistance and rent thresholds have been increased in line with movements in the consumer price index (CPI).  The new rates will apply from payday 27 March 1997.

Payment Details

The fortnightly rate of pension you will receive from 27 March 1997 is shown below.

Payments to SEYMOUR PLANET

	TOTAL FORTNIGHTLY PAYMENT		$408.20
	This is made up of :-
	-   Service pension		347.80
	-   Rent assistance		55.00
	-   Pharmaceutical allowance		5.40

Changes to Deeming Rules

In the 1996 Budget the Government announced changes to the current deeming rules.  From 27 March 1997, the first $2000 (for single pensioners) or $4000 (for pensioner couples) held in financial institutions, previously assessed at the actual interest rate, will be deemed at the lower deeming interest rate, currently 4%.

Telephone Allowance

Telephone allowance will be paid on 27 March 1997, together with your new fortnightly rate of pension shown above.  The rates of telephone allowance are:

• World War 1 - $42.50
• General Rate (single income support pensioners, war widow(er)s and recipients of certain rates of disability pension) - $15.40
• Married Rate - $7.70 each for service pensioner couples.

Your Right of Review

If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office.  If you decide to apply you must do so within 3 months of being advised of this variation.  A request for review must be in writing and set out your reasons for seeking this review.

Your Obligations

Your obligations have been explained to you in previous advices; 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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

Gary Collins

Deputy Commissioner as

Delegate of the Secretary

Mock up 2

PENSIONER COUPLE , MAX RATE SP, SAVED RA

INDEXATION, DEEMING CHANGES, SAVED RA UPDATE, TA PAID

NO MIs/SHARES

							Commonwealth Department of Veterans' Affairs
						STATE OFFICE
							AMP Place
							10 Eagle Street
							Brisbane QLD
							Postal Address:
	GREGORY PRINCE						GPO Box 651 Brisbane  QLD  4001
	DEBORAH PRINCE
	VILLA 43/21 MONTE CARLO WAY						Telephone:
	MONAK  NSW  2738						Metropolitan residents:  (07) 3223 8333
							Country residents:   1800 113304
							Interstate residents: 1800 777634
							Facsimile:  (07) 3223 8585
							10 March 1997
	_
							YOUR FILE NUMBER IS QX463215

Dear Mr and Mrs Prince

I am writing to you about your pension payment from Veterans' Affairs.

Indexation of Pensions

Service pensions, income support supplement, disability pensions, rent assistance and rent thresholds have been increased in line with movements in the consumer price index (CPI).  The new rates will apply from payday 27 March 1997.

Payment Details

The fortnightly rate of pension you will receive from 27 March 1997 is shown below.

Payments to GREGORY PRINCE and DEBORAH PRINCE

	TOTAL FORTNIGHTLY PAYMENT	$514.54	$297.10
	This is made up of :-
	-   Disability pension	217.44
	-   Service pension	290.10	290.10
	-   Rent assistance	4.30	4.30
	-   Pharmaceutical allowance	2.70	2.70

Changes to Deeming Rules

In the 1996 Budget the Government announced changes to the current deeming rules.  From 27 March 1997, the first $2000 (for single pensioners) or $4000 (for pensioner couples) held in financial institutions, previously assessed at the actual interest rate, will be deemed at the lower deeming interest rate, currently 4%.

Saved Rent Assistance

Since 28 March 1996, the value of CPI increases for income support pensions have been offset against the amount of rent assistance paid to those pensioners who receive rent assistance at a higher rate than their entitlement would be under current legislation, because of savings provisions implemented over past budgets.  This will continue until such time as the rate of payment under current legislation is reached.

The value of the CPI increase for 27 March 1997 has been offset to further reduce the higher rate of rent assistance you have been receiving.  The amount of your rent assistance has been reduced to $4.30 each.  Further CPI increases will be offset against this amount until your rent assistance is reduced to your correct entitlement.

Telephone Allowance

Telephone allowance will be paid on 27 March 1997, together with your new fortnightly rate of pension shown above.  The rates of telephone allowance are:

• World War 1 - $42.50
• General Rate (single income support pensioners, war widow(er)s and recipients of certain rates of disability pension) - $15.40
• Married Rate - $7.70 each for service pensioner couples.

Your Right of Review

If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office.  If you decide to apply you must do so within 3 months of being advised of this variation.  A request for review must be in writing and set out your reasons for seeking this review.

Your Obligations

Your obligations have been explained to you in previous advices; 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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

Gary Collins

Deputy Commissioner as

Delegate of the Secretary

Mock up 3

WAR WIDOW, REDUCED RATE ISS

INDEXATION, DEEMING CHANGES, TA PAID, GLOBAL

HAS MIs/SHARES

							Commonwealth Department of Veterans' Affairs
						STATE OFFICE
							AMP Place
							10 Eagle Street
							Brisbane QLD
							Postal Address:
	ROSE LONDON						GPO Box 651 Brisbane  QLD  4001
	28 PHANTOM PLACE
	WEST END  QLD  4101						Telephone:
							Metropolitan residents:  (07) 3223 8333
							Country residents:   1800 113304
							Interstate residents: 1800 777634
							Facsimile:  (07) 3223 8585
							10 March 1997
	_
							YOUR FILE NUMBER IS QX213564

Dear Mrs London

I am writing to you about your pension payment from Veterans' Affairs.

Indexation of Pensions

Service pensions, income support supplement, disability pensions, rent assistance and rent thresholds have been increased in line with movements in the consumer price index (CPI).  The new rates will apply from payday 27 March 1997.

Payment Details

The fortnightly rate of pension you will receive from 27 March 1997 is shown below.

Payments to ROSE LONDON

	TOTAL FORTNIGHTLY PAYMENT		$475.20
	This is made up of :-
	-   War widows pension		371.80
	-   Income support supplement		98.00
	-   Pharmaceutical allowance		5.40

Changes to Deeming Rules

In the 1996 Budget the Government announced changes to the current deeming rules.  From 27 March 1997, the first $2000 (for single pensioners) or $4000 (for pensioner couples) held in financial institutions, previously assessed at the actual interest rate, will be deemed at the lower deeming interest rate, currently 4%.

Reassessment of Financial Assets

The asset values of listed shares and unit-based managed investment products have been reassessed.  Details of your investments are listed in the attachment.

Telephone Allowance

Telephone allowance will be paid on 27 March 1997, together with your new fortnightly rate of pension shown above.  The rates of telephone allowance are:

• World War 1 - $42.50
• General Rate (single income support pensioners, war widow(er)s and recipients of certain rates of disability pension) - $15.40
• Married Rate - $7.70 each for service pensioner couples.

Your Right of Review

If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office.  If you decide to apply you must do so within 3 months of being advised of this variation.  A request for review must be in writing and set out your reasons for seeking this review.

Your Obligations

Your obligations have been explained to you in previous advices; 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.  When that change has been finalised, we will send you another letter providing details of your new pension assessment.

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

Gary Collins

Deputy Commissioner as

Delegate of the Secretary

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

(Information current as at 10 March 1997)

The following is a complete list of your income and assets held by the Department.  If any details are incorrect or have been omitted you should notify the Department.

Savings and Cheque Accounts

Description	Account Number	Asset Amount
Commonwealth Bank	500333	$1,500.00
National Australia Bank	20-678-3459	$3,500.00
Heritage Building Society	11157S1	$2,250.00

IMPORTANT  We understand that balances in savings type accounts may fluctuate regularly.

Money Loaned

Description	Type	Asset Amount
QLD Treasury	Bond	$10,000.00
Suncorp	Debenture	$15,000.00

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
NATIONAL AUST. BANK - $1.00 ORDINARY FULLY PAID	1000	$15,670.00
COMMONWEALTH BANK - $2.00 ORDINARY FULLY PAID	750	$9,412.50
COLES MYER LIMITED - 50C ORDINARY FULLY PAID	1500	$7,530.00

Managed Investments

Description	No. of Units	Asset Amount
IOOF AUSTRALIA - V - CAPITAL GUARANTEED ACCUMULATOR	N/A	$17,345.00
BT FINANCIAL SERVICES - N - HI-YIELD TRUST	12,000	$12,000.00
BT FINANCIAL SERVICES - N - LIFETIME TRUST - MONTHLY INCOME	11,620	$13,653.50

Note:  Income from financial assets is deemed.

Total Financial Assets

FINANCIAL ASSETS VALUE	INTEREST RATE	INCOME PER FORTNIGHT
$30,000.00	4%	$46.15
$77,861.00	6%	$179.67
$107,861.00		$225.82

Other Income and Assets

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

Home Assets

• Market value of household contents - $10,000.00

Miscellaneous Assets

• Car - 1994 Ford Laser with a net market value of $15,500.00

Total of Income and Assets

The total of your fortnightly income as listed above is $225.82.  The total of all your assets listed above is $133,361.00.

Mock up 4

PENSIONER COUPLE, REDUCED RATE SP - REDUCTION TO NIL

INDEXATION, DEEMING CHANGES, GLOBAL

HAS SHARES

NO OTHER PAYMENT

							Commonwealth Department of Veterans' Affairs
						STATE OFFICE
							AMP Place
							10 Eagle Street
							Brisbane QLD
							Postal Address:
	DANIEL MORGAN						GPO Box 651 Brisbane  QLD  4001
	ELIZABETH MORGAN
	27 PARIS CLOSE						Telephone:
	LYONS  ACT  2606						Metropolitan residents:  (07) 3223 8333
							Country residents:   1800 113304
							Interstate residents: 1800 777634
							Facsimile:  (07) 3223 8585
							10 March 1997
	_
							YOUR FILE NUMBER IS QX564213

Dear Mr and Mrs Morgan

I am writing to you about your pension payment from Veterans' Affairs.

Indexation of Pensions

Service pensions, income support supplement, disability pensions, rent assistance and rent thresholds have been increased in line with movements in the consumer price index (CPI).  The new rates will apply from payday 27 March 1997.

Payment Details

Your income support pension has been reduced to the Nil rate because your income and/or assets exceed the limits that allow for payment of the pension.  This change to your fortnightly rate of pension applies from 27 March 1997.

Changes to Deeming Rules

In the 1996 Budget the Government announced changes to the current deeming rules.  From 27 March 1997, the first $2000 (for single pensioners) or $4000 (for pensioner couples) held in financial institutions, previously assessed at the actual interest rate, will be deemed at the lower deeming interest rate, currently 4%.

Reassessment of Financial Assets

The asset values of listed shares and unit-based managed investment products have been reassessed.  Details of your investments are listed in the attachment.

Fringe Benefits

As you are no longer eligible for an income support pension, you no longer qualify for fringe benefits.  You should return your Pensioner Concession Card to this office.

Your Right of Review

If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office.  If you decide to apply you must do so within 3 months of being advised of this variation.  A request for review must be in writing and set out your reasons for seeking this review.

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 to Re-Apply

You may re-apply to have your income support pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension..

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

Gary Collins

Deputy Commissioner as

Delegate of the Secretary

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

(Information current as at 10 March 1997)

The following is a complete list of your income and assets held by the Department.  If any details are incorrect or have been omitted you should notify the Department.

Savings and Cheque Accounts

Description	Account Number	Asset Amount
National Australia Bank	51-365-9722	$7,350.00
National Australia Bank	31-278-6303	$3,500.00
Westpac Bank	590361	$6,325.00

IMPORTANT  We understand that balances in savings type accounts may fluctuate regularly.

Term Deposits and Other Accounts

Description	Account Number	Asset Amount
National Australia Bank	70-654-3218	$20,000.00
National Australia Bank	70-654-3220	$25,000.00

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
NATIONAL AUST. BANK - $1.00 ORDINARY FULLY PAID	8500	$133,195.00
COMMONWEALTH BANK - $2.00 ORDINARY FULLY PAID	2750	$34,512.50

Note:  Income from financial assets is deemed.

Total Financial Assets

FINANCIAL ASSETS VALUE	INTEREST RATE	INCOME PER FORTNIGHT
$50,000.00	4%	$76.92
$179,882.50	6%	$415.11
$229,882.50		$492.03

Other Income and Assets

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

Home Assets

• Market value of household contents - $15,000.00

Miscellaneous Assets

• Car - 1995 Mazda 626 with a net market value of $27,500.00

Direct Income

National Aust. Bank superannuation - $871.44 per fortnight

Total of Income and Assets

The total of your fortnightly income as listed above is $1,363.47.  The total of all your assets listed above is $272,382.50.