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The purpose of this Departmental Instruction is to provide procedural guidelines and background information on the 1994/95 Budget initiative, to increase the rate payable to widowed and separated partners of former veteran service pensioners.


2.As part of the 1994/95 Budget, the Government announced a change in the rate payable to service pensioners who are widowed or separated.  This change will allow service pension to be paid at the higher standard (single) rate, rather than the partnered (married) rate, to all service pensioners who are not members of a couple.  The legislative commencement date for this initiative is 20 March 1995, with 30 March 1995 being the first effective payday.

3.Prior to 20 March 1995 the VEA restricted the amount of service pension payable to widowed and separated partners of veteran service pensioners.  Although service pension eligibility continued following separation or bereavement, payment was at the partnered (married) not the standard (single) rate.


4.In practice, the majority of people in this category transferred to a standard (single) rate of a similar pension payable under the Social Security Act, 1991.  Consequently, a large proportion transferred to Social Security to gain the benefit of the higher standard rate.

5.Because the majority of widowed spouses are of pension age, it could be argued that by forcing these widow/ers to transfer to another Department in order to maximise income support entitlement, Veterans' Affairs was relinquishing its responsibilities to veterans and their dependants.


6.From 30 March 1995, the standard rate of service pension will be paid to three newly eligible groups:

  • approximately 4,500 widowed and separated partners receiving partner (married) rate service pension;

  • a further 4371 former service pensioners who have transferred back from Social Security; and

  • all future widowed and separated partners of veteran service pensioners.

7.An 'Application For Transfer Of Income Support Payment' form (D528) was developed for clients wishing to transfer from Social Security.


8.The effective date for the Standard Rate changes was 20 March 1995 with 30 March 1995 being the first effective payday.


9.A related 1994/95 Budget initiative is the introduction of the Income Support Supplement (ISS).  The Government announced a new payment (ISS) payable to eligible war widows widow/ers who satisfy income/assets tests and meet certain eligibility criteria.  This initiative also commenced on 20 March 1995.  A separate Departmental Instruction relates to this initiative.  A further initiative, is the extension of the blinded provisions to partners, Departmental Instruction (DI B 19/95 of 21/3/95) refers.



10.From 20 March 1995, the Veterans' Entitlement Act (VEA), 1986, was amended to reflect the extension of standard rate service pension to widowed and separated partners.

11.The major amendments to the VEA were introduced in the Veterans' Affairs

(1994-95 Budget Measures) Legislative Amendment Bill 1994, which received Royal Assent on 30 June 1994.  Consequential amendments were introduced in the Veterans' Affairs (1994-95 Budget Measures) Legislative Amendment Bill (No.2) 1994 which received Royal Assent on 16 December 1994.  See Attachment A for a summary of the legislative amendments relating to this initiative.


12.This initiative may apply to:

  • existing widowed and separated partner service pensioners;

  • existing widowed and separated Social Security income support recipients; and

  • all future partner service pensioners or Social Security income support recipients who become widowed or separated in the future;

13.For future widowed partners, the widow/widower must be in receipt of an income support payment from either Veterans' Affairs or Social Security immediately prior to the veteran's death.

14.The current provisions relating to illness separated couples are not affected by this initiative.

Existing service pensioners

15.From 20 March 1995, existing partner service pensioners currently paid at the half (married) rate, automatically qualify for the standard rate of service pension.

Social Security pensioners and allowees

16.To be eligible to transfer to a Veterans' Affairs widowed/separated, partner service pension under the new provisions a Social Security income support recipient must be:

  • if widowed, the former partner of a deceased veteran service pensioner who immediately prior to death was in receipt of a service pension; or

  • if separated, the former partner of a current veteran service pensioner.

Loss of Eligibility

17.The following former partners (including widowed and separated partners) are not eligible for service pension:

  • war widow/ers (they may be eligible for an Income Support Supplement);

  • widowed partners who remarry, or who, at or after implementation, are in or enter into a marriage like relationship with a new partner other than a veteran service pensioner; and

  • separated partners who divorce their veteran partner at or after implementation, or who, at implementation or after implementation, are in or enter into a marriage like relationship with a new partner other than a veteran;

  • partner service pensioners, whose veteran partner, no longer receives service pension.  The exception to this rule is where the veteran was receiving service pension at the time of death and the widowed partner has not entered into a new relationship.

18.There are no savings provisions for existing widowed or separated service pension partners who have entered into a new marriage like relationship after the death of the veteran.  In November 1994 - December 1995 this group were advised of the need to make new financial arrangements before their service pension payments cease on 30 March 1995.


Automatic Grant Of Standard Rate

19.Upon death of, or separation from a veteran, the former partner will automatically be increased to the standard rate of service pension.

20.In the case of a widowed partner, bereavement payment will be calculated, based on the difference between the combined married rate of pension paid prior to the veteran's death and the new standard rate payable to the surviving partner.


21.Previously, only blinded veterans received service pension free of the income and assets tests.  Social Security, on the other hand, pay pension to all blinded pensioners, free of the income and assets tests.  To ensure that Veterans' Affairs service pensioners are not disadvantaged in relation to Social Security pensioners, section 43 of the VEA was amended to extend the blinded provisions to all “blind persons” who meet the service pension eligibility criteria.  Further legislative amendments to the Rate Calculator for blinded pensioners will follow.  This amendment will allow for the half payment on transfer from Social Security to be made to blinded partner service pensioners.

22.Where a partner service pensioner satisfies the definition of “blind person”, they will automatically receive the maximum basic rate of service pension free of the ordinary income and assets tests.

23.The taxation exemption, which applies to some blinded veteran service pensioners, is based on their invalidity.  Partner service pension is generally a taxable payment, unless the veteran is on invalidity service pension and both the veteran and the partner are under pension age.  This rule has not changed.  Partner service pension paid under the blinded provisions generally remains taxable.

24.A separate Departmental Instruction  (DI B19/95 of 21/03/95) was issued on the extension of the blinded provisions to partner service pension.

Child Related Payments

25.As part of this initiative, child related payments will now be payable to widowed or separated partners.  In the case of a widowed partner, child related payments formerly paid to the deceased veteran will automatically be paid to the surviving partner (refer to the section on System Changes in Part 3 paragraphs 51 et seq for further information).

26.In the case of a separated partner, where there is no shared custody declaration either under the VEA or ss 869(1) of the SSA, then the payment of DCOA is paid to the partner.

27.For some clients who previously had no access to child related payments under the VEA, this will be the first time they have received this payment.

Commencement Of Another Relationship

28.Where a partner service pensioner remarries or enters into a marriage-like relationship with a new partner,  eligibility for service pension ceases (once eligibility is lost, it can not be regained).  The only exception is where the person has entered into a new relationship with another veteran service pensioner.  Where this situation arises service pension entitlement is in relation to the new partner.

29.If a partner divorces a veteran, eligibility to partner service pension is lost.  This rule has not changed.

Pre 20 March 1995 Methodology

30.Prior to 20 March 1995, the provisions of the VEA applying to widowed and separated partner service pensioners, stated that they will continue to be paid at the partnered (married) rate, even though they are no longer a member of a couple with a veteran.

31.Section 44 of the VEA, which has been repealed (refer to Attachment A), provided the Rate Calculator for widows, widowers and non-illness separated partners.  This section limited the rate payable to this group to half the married rate.

Post 20 March 1995 Methodology

32.From 30 March 1995, being the first available payday following the commencement date, 20 March 1995, widowed and separated partners will receive the standard (single) rate of payment instead of the partnered (married) rate of service pension.

33.Pension will be calculated using the standard rate, ordinary income free area and the asset value limit.  As at 30 March 1995 these limits are:


$90.00 per fortnight


$115,000 (Homeowner)

$197,000 (Non-Homeowner)


Half Payment

34.Social Security and Veterans' Affairs pensions are paid on alternate Thursdays.  To avoid dual payment to those who transfer back to Veterans' Affairs, new half pay rules were introduced (see amendments to s 41 and 42).  From 20 March 1995, the first payment to all pensioners who transfer from Social Security to Veterans' Affairs service pension will be a half payment.

35.Half pay rules for pensioners are as follows:

  • a half payment of service pension

  • a half payment of rent allowance (non child related)

  • a full payment of additional family payments (including child related rent assistance)

  • a full payment of pharmaceutical allowance

  • a full payment of remote area allowance.

36.A new classification type (refer Part 3, System Changes, paragraphs 45 et seq for further information) on the claims management system (CM.CP), was available from 13 March 1995.  This classification type will automatically generate the half pay and add a half payment explanation to the payment advices.  All pensioners who have been transferred to Veterans' Affairs as part of the bulk transfer activity, will receive a 'half payment' on 30 March 1995 (payday 72).

37.It is important to note that this rule does not apply to Social Security allowees who transfer to service pension.  The Social Security payday for allowees is generally the date the application is lodged.  This could be any day within a particular fortnight.  To apply the half pay rule to this group may result in underpayment (refer to Part 3 System Changes, paragraphs 49 et seq for further information on how this group are to be registered).



38.A major aspect of this initiative is the return of former Veterans' Affairs clients from Social Security.

39.A bulk data transfer exercise between the two Departments was conducted for the 30 March 1995.  For those clients who could not be transferred automatically, manual transfer arrangements occurred, utilising the existing Claim for Service Pension by a Partner (SP2) form, in conjunction with the new D528 application for transfer form.


40.To enable this new group of clients to be granted, a number of system changes were necessary including the creation of additional screens.

Assessment Module

41.The assessment module for payment of standard rate service pension has been amended to:

  • pay standard rate service pension instead of the married rate to MOA 11 cases;

  • allow DCAO with a MOA 11 payment; and

  • allow blinded assessment for MOA 11 cases where a blinded indicator is set to “Y” on the clients personal assessment screen (PP.PA).

42.These changes will impact upon PIPS (trial and submission), Death Processing, BAL, CCPS, and PAS.

CMS Classifications

Transfer In SP/DP

43.Applications received for transfer, up to the cutoff of 17 February 1995, were registered on a new (temporary) stand alone screen (PP.IS).  The cases were processed as a 'TRANSFER IN SP/DP' ( classification type 07), with the attribute set to 'DSS TFER/STD CASE'.  The attribute allows standard rate cases to be registered as either automatic transfers or manual transfers.  This attribute will be deleted soon after implementation, when all cases are finalised.

44.From 13 April 1995, the 'TRANSFER IN SP/DP' classification type will revert back to its original use, interstate transfers, when a new classification type (refer to paragraphs 46 et seq) becomes available.

45.The temporary PP.IS screen ceased to be available following the bulk transfer exercise, although information contained on the PP.IS can be viewed through the general inquiry system on IQ.PD.

DSS Transfer In

46.From 13 March 1995, a new process type 'DSS TRANSFER IN' (classification type 32) will be available.  From 13 March 1995 all transfers (except Social Security allowees/beneficiaries) are to be registered and processed under this code.

47.The use of this new process type will generate the half payment and the payment advice paragraph detailing the half payment and future regular fortnightly payments.

48.For the first half pay on 30 March 1995, a one time negative adjustment will be applied to the Payment Master File automatically.  Refer to paragraph 57 on Taxation Deductions for further details.

New Claim Dependent

49.Transferees from Social Security who were receiving an allowance are entitled to full payment (rather than half payment for the first payday) upon transfer.

50.This group should be registered on CM.CP as a dependant new claim SP (classification type 06) as the half pay rule does not apply.

Child Related Payments

51.Previously, in a case where a veteran died and there were dependent children, the child related payment was not transferred to the spouse although it was included in the bereavement payment.

52.A change in the assessment module with effect from 30 March 1995, will now allow for the Death Processing System (DPS) to include the child payment with the widow's standard rate of service pension, and to exclude it from the bereavement payment.

53.Additional changes in the assessment module for service pension with effect from 30 March 1995, will allow child related payments to be made to the separated partner of the veteran, unless there is a shared care arrangement, which allows for the child related payments to be split according to the shared care determination (refer to Departmental Instruction DI B04/94 of 3/2/94 for further information on shared care arrangements).

Death Processing System

54.From 20 March 1995, the assessment module for Death Processing (DPRE) changed to enable payment of the standard (single) rate instead of the married rate, to new MOA 11 cases, on the death of a married veteran.

55.From 20 March 1995, the widowed partner will be paid child related payments.  Therefore, these payments will be part of the ongoing service pension entitlement rather than a temporary payment made during the 14 week bereavement period.  Generally, this will be an automated process.

Telephone Allowance (TA)

56.Telephone Allowance is paid quarterly and will be paid by Veterans' Affairs to existing eligible pensioners on 30 March 1995.  Widowed and separated partners who transfer from Social Security on 30 March 1995 will receive their last TA from Social Security on 23 March 1995.  To avoid dual payment, Veterans' Affairs will commence TA payments to this group in July 1995.

Taxation Deduction

57.Where there is a tax deduction involved, half the taxation deduction will be automatically applied to the PMF and the TDB for payday 30 March 1995.  Manual action is required to update the PMF and TDB with the full amount for the first regular payment on payday 13 April 1995.


Existing Clients

58.A special paragraph will be included in the March Quarterly Advices issued to widowed and separated partners who were receiving the married rate of service pension prior to 30 March 1995.  The paragraph will explain the increased entitlement to service pension.

Automatic Transfers

59.On 25 March 1995, an advice, separate to the March Quarterly Advice, will be automatically issued to Social Security transferees (other than allowees and beneficiaries).  The implementation advice will include details of rate of payment for the half pay on 30 March 1995, and the full pay on 13 April 1995, cancellation of DSS pension, and client obligations. The advice will also include notification of the next payment of telephone allowance to those clients who have a TSI indicator and telephone number.  A copy of the advice is at Attachment B.

Manual Transfers

60.Manual transferees will be issued with an advice, via the Payment Advices System (daily advices) which will include details of the half payment paragraph and on going regular payments.  These cases should be registered as 'TRANSFER IN SP/DP' and be fully data collected.

61.Reason for the advice and details of the cancellation of the Social Security pension should be included via the PP.AD.  The following wording should be used:

Welcome back to Veterans' Affairs.  On 23 March 1995, your were paid your last Social Security payment.  From 30 March 1995, you will be paid your               new Service Pension.  Details are set out below.

62.Ongoing transfers from Social Security will also be issued with an advice through the daily advice system.  The above wording can be amended to suit the individual circumstances of future transferees.

Daily Advices

63.The payment advice system (PAS) has been amended to accommodate information relating to standard rate service pension payable to widowed and separated partners.  The amendments included obligations, rates of payment, threshold amounts and the general information sheet, and where relevant, a half payment paragraph.  The changes are as follows:

  • addition of a paragraph advising pensioners that their rate has increased to the standard rate;

  • addition of a half payment paragraph;

  • universal change throughout on both advices and the General Information Sheet (GIS) of spouse to partner;

  • threshold amounts on the GIS;

  • universal change to replace defacto with marriage-like relationship;

Bereavement Advices

64.Amendments to automatic bereavement advices are similar to those mentioned above.  In addition, paragraphs referring to Social Security transfer have been deleted.  This action took place on 8 December 1994.


65.A 'flier' was included in all implementation advices informing DSS transferees that some concession providers will be given client details to ensure continued fringe benefit entitlement.  If the pensioner wants to be excluded from this activity, they have the option to notify Veterans' Affairs by 21 April 1995.  Action will then be taken to omit these clients from any data provided to concession providers.  Additional copies of the 'flier' were printed and supplied for use by States to include in advices for manual transfer cases.

66.In addition, the Health Program has included a 'flier' advertising the new Home Maintenance Helpline, available from 4 April 1995.


67.Allowees and beneficiaries will be transferred to service pension manually.  An advice to this group will be produced through the Payment Advices System (daily advices).  As these cases are to be registered as a new claim dependent, the half payment advice will not be issued.

68.Similar wording (as above) can be used in the advice.


69.A new DVA PCC will be issued to all transferees.  Until they receive their new card, transferees have been advised to use their old Social Security PCC.  Service Providers have been notified that PCC's will be issued to transferees and arrangements have been made to ensure pensioners receive ongoing entitlement to fringe benefits.

70.Because transferees received concession vouchers from Social Security at the beginning of the year, Veterans' Affairs will not be issuing rail vouchers to transferees for 1995.


71.Where a transferee has an outstanding DSS overpayment, Veterans' Affairs can recover the amount on Social Security's behalf.  Existing arrangements for recovery of overpayments will remain unchanged.  This involves review of cases on a 3 to 6 monthly basis and notification to Social Security when the overpayment is

fully recovered.

72.A listing of new clients who transferred from Social Security on 30 March 1995 will be provided to State Offices.  Clients identified are to have a limitation amount applied to the PMF.  This amount will be the same limitation amount previously applied by Social Security.  The case is to be forwarded to the Overpayment Unit for recording on WINPORS and ongoing recovery action.

73.Until a full data collection occurs for a client, no overpayments are to be raised unless the overpayment eventuated as a result of fraud.  The overpayment can only be raised from the pay day where full data collection took effect.  As the total amount of income and assets are recorded for each client, variations in specific income or asset amounts can not be updated until a full data collection.


74.DVA cannot identify former service pensioners receiving income support from DSS.  It is expected that a majority of income support recipients will be receiving an age or disability support pension, and a very small minority receiving an allowance.  Examples of allowances paid by DSS include:

  • job search allowance;

  • sickness allowance;

  • newstart allowance;

  • mature age allowance; and

  • special benefit.

75.Claims by allowees and beneficiaries should be registered and processed normally as a dependent new claim for service pension (classification type 06).  Service pension payable to allowees will not be subject to the half payment rule because they are not necessarily paid on a Thursday pension payday.  Applying the half payment rule to allowees may financially disadvantage them.

76.These clients will be subject to the current clearance procedures that are in place between Social Security and Veterans' Affairs.

77.The income test applied to allowances at Social Security is different to the income test applied by Veterans' Affairs.  The DSS test applied to this group of clients is more severe and as such, transferring to DVA may result in an increase in payment.


78.Clients whose partner passed away between 22 December 1994 and 30 March 1995, will be in a bereavement period (BP) when implementation of this initiative occurs ( ie: their bereavement end date is after 30 March 1995 and up to and including 22 June 1995).  Where this occurs, the client will not have their rate increased to the standard rate until the payday after the bereavement period.  This group will not automatically receive their statutory increase of service pension for 30 March 1995.

79.After the statutory increase run (11 & 12 March 1995), each state will receive a schedule detailing those clients in a bereavement period with an end date greater than 30 March 1995 and less than or equal to 22 June 1995.

80.Thereafter, reports will be produced each fortnight.  These reports will list out the clients whose BP ends in that fortnight.  The report will also indicate if the client is to be re-assessed due to MI, Shares, Super or BRI activity during the bereavement period.

81.At the end of the BP clients are to be re-assessed as follows:

  • rate of pension is to be increased to the standard rate from the first payday following the end of the BP.

  • arrears of the statutory increase at the married rate of service pension and BP, are to be calculated from payday 72 (30 March 1995) to the last payday of the BP.


82.Upon implementation, transferees who are veterans and who are currently in receipt of at least 50% DP, will have their STEC increased to a PTEC.  Subsection 85(7) of the VEA refers.  Affected clients will receive an automatic upgrade in treatment entitlement.


83.A full data collection of income and asset and other details occurred for all manual transfer cases.  For those transferring from DSS in the bulk exercise however, only limited detail was supplied.

84.As part of the bulk transfer exercise, the total amount of income and assets of transferees was recorded on the other assets screen (PP.OA), with a literal description of 'DSS TRANSFER STD'.  Classification types 'DSS TRANSFER IN' and 'TRANSFER IN SP/DP' ensured that a full data collection was not necessary, but allowed the total income and asset amounts to be recorded temporarily under this new type of 'DT' on the Other Assets screen.

85.For cases where 'DT' is entered on PP.OA, the description field will default to 'DSS TRANSFER STD'.  The recording of income and asset amounts with this description will allow the cases to be readily identified for selective review.


86.Cases with total income and asset amounts recorded under this new type 'DT' will be recognised and allowed to be processed, without full data collection occurring, for:

  • DP cancellation (classification type 01)

  • DP data change (classification type 02)

  • DP payment change (classification type 03)

  • Transfer out (classification type 14)

  • Transfer in DP/SP (classification type 07)

  • DSS transfer in (classification type 32)

  • Nil pension variation (classification type 15).

87.Fortnightly automatic processing runs such as shares and managed investments updates will not apply to these cases until a full data collection has taken place.

88.Where such a case requires review, excluding action mentioned above in paragraph 84, it will be necessary to conduct a full data collection.  At the same time, the income and asset amounts recorded on PP.OA as 'DT' should be deleted.

89.If the DSS transfer data is not deleted, an edit at submission (PP.SU) will prevent the case from being submitted.

90.Once the 'DT' income and asset type has been deleted, a warning message will be displayed at determination (PP.DE) to alert the delegate that the case had DSS transfer data recorded on the Other Assets screen (PP.OA).

91.Attachment C gives details of the Review Strategy to be adopted by States after implementation.  This Workload and Review Strategy was approved by the AS(IS) on 13 October 1994.


92.After implementation, clients will continue to transfer from Social Security to Veterans' Affairs.  Normal clearance procedures are to be followed.  The first payment made by Veterans' Affairs to pensioner transferees (not allowees) will be a half payment (refer to Payments in Part 2 paragraphs 34 et seq for further information).

93.From 13 April 1995, a new process type 'DSS TRANSFER IN' (32) is available (refer to Systems Changes in Part 3, paragraphs 46 et seq for further information).  With the exception of transferees, receiving a Social Security benefit or allowance, all future transfers from Social Security are to be registered and processed under this code.

94.This new process type will generate the half payment and the advice detailing the half payment and future regular fortnightly payments.

95.The 'Claim For Service Pension By An Eligible Partner/Widow' form (SP2), has been updated to cover widowed and separated partners who wish to transfer back to Veterans' Affairs in the future.

96.Existing DSS clearance procedures should be followed to arrange a start and end date of payment.


97.The existing delegations that apply to service pension new grants, will apply to transfers from Social Security to standard rate service pension payable to widowed and separated partners.


Education Entry Payment (EdEP)

98.EdEP is a payment also made to Social Security pensioners who qualify.  When processing a claim for this payment, officers should liaise with Social Security to ensure that the client has not already claimed EdEP for the same period.  For further information on EdEP please refer to Departmental Instruction DI B61/94 of 14 December 1994.

Earnings Credit

99.Where a transferee wishes to utilise their Earnings Credit, it will be necessary to liaise with Social Security to obtain details of the amount accrued by the transferee whilst a Social Security pensioner.

State & Commonwealth Super

100.Transferees from Social Security who were in receipt of a State or Commonwealth Superannuation payment were identified in a report produced after the 'live' run.

101.As part of general review procedures following implementation, clients listed in the report should be re-assessed and coded on the system as receiving a superannuation payment.  This is to be combined with a full data collection of their income and asset details.

102.A global review of State and Commonwealth Superannuation will not apply to these clients until they are recorded as having a superannuation payment.

Deprived Assets

103.Social Security were unable to provide details of deprived assets on the data transfer.  Deprived assets will therefore only come to light as part of the normal review process.

Disability Pension (DP)

104.Clients in receipt of DP may benefit from the transfer as Social Security assess DP as income.  These clients were transferred under the manual transfer provisions therefore the rate payable to them was determined by Veterans' Affairs.

105.Subject to other income and assets and depending on whether this group were receiving maximum rate DSS pension, this group may receive an increase in pension on transfer.


106.Service pension will not be payable to a widowed or separated partner on the grounds of invalidity.  Therefore, those Disability Support Pensioners, who wish to transfer to DVA, will lose their tax exempt status on transfer.

107.For the 1994/95 financial year, all transferees will be issued with a group certificate from both Departments.  Group certificates will be issued by DVA at the end of the financial year, for the period 30 March 1995 to 30 June 1995.


Attachments are:

  • Attachment A - Legislative Amendments

  • Attachment B - Automatic Implementation Advice

  • Attachment C - Review Strategy

  • Attachment D - State Contact Officers


108.Should you have any queries concerning aspects of the Department Instruction please contact Project Manager (PD&I), Oona O'Beirne, on telephone number (02) 213 7771.




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The main legislative amendments relating to standard rate service pension are as follows:


Commencement Date

SS. 2(1)(5)

Veterans' Affairs (1994-95 Budget Measures) Legislative Amendment Bill, 1994




Minor technical amendment to correct a legislative reference relating to non-illness separated spouse.


Minor technical amendment to correct a legislative reference for couple's assets deeming provisions.



Changes ensure that the veteran was in receipt of an age or invalidity SP immediately prior to their death for the widowed partner to qualify for SP.


Change ensures that a partner who was in receipt of a Social Security pension prior to the veterans death was also covered.


Changes ensure that eligibility ceases where a person is in a marriage-like relationship or enters into a marriage-like relationship prior on the commencement date - NB no savings provisions.


Changes ensure that eligibility is not regained by a separated partner on the death of a veteran, when the former partner was in a new marriage like relationship prior to a veterans' death.


Changes ensure that eligibility ceases, where a partner enters into a marriage-like relationship after the death of the veteran.



subsection 3 of 38N is omitted (except the note) 38N explains how to work out the rate of partner pension.


40C covers the application of income and assets test reductions for income tax purposes.  The former Relevant Modules Table has been replaced to reflect the changes.


Changes ensure that section 41 rate calculations do not apply to blind service pensioners (see

s. 43).


Changes ensure that the first payment of SP to a Social Security transferee is half the basic service pension and any non child related RA for the first pay day.


Covers the rate of age, invalidity, partner and carer service pension (dependent child or children) Changes explain who is affected by the 'half pay” rule.


Amendments ensure that the first payment of SP to a Social Security transferee is half the basic SP but child related payments are pad in full.


Amendments refer to veteran's rather than persons in relation to new shared care rules for dependent children.


Changes ensure that where there is no shared custody declaration in place, either under the VEA or the SSA, child related payments can be paid to the partner of a veteran.

Subdiv E

Subdivision E of Division 7 of Part III is repealed.


Section 43 has been amended by substituting all references including headings, from blind veterans to blind persons.  Areas amended include 43(1), 43(3), 43-A1, 43-B1,43-C3 & 43-E2


Schedule 2 of VA(1994-95 Budget Measures)LAB, 1994 omits rate calculators previously used to

determine SP for Widowed and non-illness separated partners

Other smaller amendments and repeals of a minor technical nature were also introduced.

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Commonwealth Department of

Veterans' Affairs


Centennial Plaza

Elizabeth Street

Sydney NSW 2000

Postal Address:

GPO Box 3994, Sydney NSW 2001



Telephone:  Metropolitan


residents:213 7777

Country residents:


March 1995


Dear Mrs Mort

Thank you for your application for transfer to the standard rate Service Pension.  I am pleased to welcome you back to Veterans' Affairs.  This letter gives details of your new Service Pension payment that starts on 30 March 1995.

Indexation of Pensions

You will notice that the final payment of your Social Security pension on 23 March 1995 was increased in line with movements in the consumer price index (CPI).  This new rate will continue to be paid by Veterans' Affairs from 30 March 1995.

Payment Details

You received your last fortnightly payment of Social Security pension on 23 March 1995.  This was for the two weeks ending 6 April 1995.  On 30 March 1995 you will receive ONE week of Service Pension.  This is NOT a bonus.  One week payment is necessary because Veterans' Affairs and Social Security pay their pensions on alternate Thursdays.

This one week payment will include full payment of pharmaceutical allowance and remote area allowance, if applicable.

On 13 April, the pay day for Veterans' Affairs pensions, and every fortnight after that, you will receive your normal full fortnightly amount of Service Pension.

You will not be financially disadvantaged by these arrangements.

In summary, on 23 March 1995 you will receive your last normal fortnightly payment of Social Security pension.  On 30 March 1995 you will receive a special one week adjustment of Service Pension from Veterans' Affairs and on 13 April 1995 you will receive your first normal fortnightly Service Pension payment.

Your ongoing fortnightly rate of pension is set out below.





-Service Pension


-Pharmaceutical Allowance

$&    5.20

From 13 April 1995 this amount will be credited each fortnight to account number &ACCTNUMB., in the name of &ACCTITLE. at the &ACCTINST.

Please note however your first payment of Service Pension on

March 1995 will be a half payment of ($&160.80).

Telephone Allowance

On 23 March 1995 you received your last quarterly telephone allowance from Social Security.  Future payments of telephone allowance will be paid by Veterans' Affairs.  Your next payment of telephone allowance will be on 6 July 1995.

Fringe Benefits

While you were receiving a Social Security pension you had a pensioner concession card (PCC) that gave you fringe benefits.  As a service pensioner, you will be provided with the same fringe benefits provided by Social Security.  Veterans' Affairs will provide you with a new pensioner concession card (PCC).  Until you receive the new card, you can continue to use your old Social Security PCC.

You may be asked by some service providers to produce your new Veterans' Affairs PCC with your new number when you claim your concessions.

PCC holders are entitled to one issue of concession vouchers each calendar year.  As you have already received your concession vouchers from Social Security, Veterans' Affairs will not issue new vouchers for use in 1995.

In 1996 Veterans' Affairs will issue both a new PCC and vouchers to you.

Your Obligations to the Department

You will continue to have the same sort of obligations that you had while you were getting a Social Security pension, but now your obligations are to Veterans' Affairs.

Obligations- Financial

Income and Assets

The amount of Service Pension you receive will depend on the amount of income or assets you have.  Your Service Pension is paid under the (income/assets) test.  You must tell the Department within 21 days if your income (apart from your Veterans' Affairs pension) rises above ($&XXX.XX) a fortnight.  You must also tell us if the total value of your assets rise above ($&XXXXXX.XX).

Obligations- General

You must tell us if you:

  • Change your postal and/or residential address

  • Leave Australia permanently

  • Are granted any pension or benefit from the Department of Social Security

  • Are granted any pension or benefit from an overseas authority

  • Are imprisoned after conviction for an offence.

You must tell us if there is any change in your situation if any of the following circumstances apply:

  • You are a Homeowner/mobile Homeowner/ medical institution resident

  • You live in a retirement village

  • You have a life interest in a home

  • You pay rent

  • You live in a remote area and receive remote area allowance

Obligations- Domestic Situation

You must tell us if your marital circumstances change, eg you marry or remarry or start to live in a defacto or marriage-like relationship.  If you have remarried you must tell us if you divorce or separate.

Your Right of Review

If you do not agree with a decision affecting your rate of Service Pension, you may apply to have it reviewed by a Delegate of the Repatriation Commission.  The Delegate may decide the original decision was correct, or may decide to change it.  If the decision is changed, your pension may be increased or reduced.

Any request for a review must be made in writing within three months of the day you receive this letter.  Your letter should state the specific grounds for your request for review.

Release and Use of Information

The income and asset information you give to this Department is used to work out your entitlement to pension and other benefits.  Some information that you have supplied may be released to other agencies or bodies, such as the Department of Social Security, the Australian Taxation Office, the Health Insurance Commission, various state and local government authorities and superannuation funds.

The reason for supplying information to such agencies or bodies is to verify income/asset details, matching information, payment of accounts for treatment and to verify eligibility for rebates or concessions.

Notification Arrangements

We will write to all Service Pension payees in July each year.  This letter will give you details of your income and assets currently held by Veterans' Affairs and also your obligations regarding any changes to those details.  It will include your Group Certificate as your Service Pension is taxable income.

Enclosed with this letter is a calendar which will include Veterans' Affairs Pension pay days, telephone allowance pay days and other relevant information for 1995.  The calendar will be mailed to you in December each year.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary



After the live run Immediate Examiner and Review Reports were issued which gave details of the review activity required immediately after implementation.  The procedures for actioning of these reports was included in the Procedural Guidelines issued 13 January 1995 and is again provided below.

Reviews for other cases, including reduced rate cases are to be deferred for at least six months.  Assets tested cases are to be included in the annual assets review in 1996.

If a transferee notifies the Department of changes to their circumstances, a full review including income and assets will be undertaken by Branch Office Staff.  As part of the exercise the total income and asset values transferred across from DSS will need to be deleted to ensure payment of the individual's full pension entitlement.

Those targeted for review are required to complete an SP3.

Reports Issued After 'Live' Run

Limitations / Overpayments

Where an overpayment case was transferred, Veterans' Affairs will recover the overpayment on behalf of Social Security by partial withholding of pension.  Veterans' Affairs will not be involved in negotiating other recovery action; this will be the responsibility of Social Security.

The Social Security overpayment details will be listed on the report.  The overpayment is to be recorded on the PMF and pension limited at the same rate that the former DSS pension was limited.  The case should be referred to the OMU for necessary action.

Taxation Deductions

Where a client had a tax deduction at DSS, half the taxation deduction will be automatically applied to the PMF and TDB for 30/3/95.  Examiners are required to update the PMF and TDB with the full amount for the first regular payment on 13/4/95.

Earnings Credit Balance And When Exhausted

The remaining balance of earnings credit (ie: it will only report out where it is currently being utilised), should be marked clearly on the client's file and on the text screen (PP.TE).  Staff will need to liaise with Social Security.  The date of exhaustion will specify when income is to be fully assessed.  A review should be noted for this date, or if the date is close, the file may need to be held pending review.

Manual Rate Assessments (Ie: Hardship, Pensioner Loan Scheme)

These cases will be automatically given a manual method of assessment (MOA 99), pending immediate review of income and assets.  Service pension rate and allowances will be recorded on the manual rates screen (PP.MR).  The 30 March 1995 Statutory Increase will be automatically applied to these cases.  Note: This is a “one off” automatic CPI adjustment.  Future SI's will be actioned manually as per current manual rate arrangements.

PA Advances-Annual Amount And Lump Sum End Date

These Social Security details will need to be recorded on the CDB via PIPS.  Examiners will need to access PY.LP and insert a Y in the 'transfer in' field.  Contact your SSO for further assistance.

Telephone Allowance

Any discrepancy between a clients telephone number and subscriber details will be listed for action.  Clients will have received their telephone allowance for the March quarter from Social Security and as such examiners have until the next quarter to update these cases.  The report will detail whether the phone number is different or where the TSI indicator differs.

British Retirement Income Assessed As A Direct Deduction

An SP3 should be completed by affected clients and a full data collection undertaken.  Subject to other income and asset details, some transferees in receipt of a British Retirement Pension (BRI) may receive an increase in pension on transfer.  Social Security has reciprocal agreements relating to pensions with certain countries.  In cases where a British person does not meet the 10 year residency rules, Social Security pension may be paid.  However, any BRI received is deducted dollar for dollar from pension.  Veterans' Affairs do not currently have such an arrangement.  Therefore any transferee who is in this situation may be reassessed applying normal income test rules (ie withdrawal of 50 cents of pension for every one dollar in excess of the ordinary income free area).

Once an SP3 has been completed, SP can be reassessed and any arrears backdated to 30 March 1995.  Please do not forget that 30 March 1995 was a half pay.

Review Details

Manual reviews, such as earnings, will be listed with the date of review and reason for review.  DSS use a numerical coding system for reviews.  State Budget Contact Officers were provided with a list of these codes.

Depending on the type and date of review, discretion should be used by the examiner as to whether a full data collection should occur.

Income and asset review details will include 'date last reviewed' and 'date next review'.  Depending on these dates, an SP3 may need to be sent and completed by the service pensioner.

Examiners should note that where the client is part of other review activity, a duplicate review should not take place.

Compensation Claim Pending

Staff should send a 'Compensation & Damages' (D541) form to transferees listed on this report.  Examiners will need to liaise with the OMU unit or complex examiners of each state to establish where the action for these cases is to be done.








213 7172 / N-B-BUDGET



284 6213 / V-B-IP



213 2288 / S-B-IS50



223 8442 / Q-B-PF10



21 6684 / T-B-IS9



366 8504 / W-B-PROJ3