External
Departmental Instruction

DATE OF ISSUE:   9 FEBRUARY 1996

MINIMUM AGE SET FOR PARTNERSERVICE PENSION

PURPOSE

The purpose of this Departmental Instruction is to provide procedural guide-lines and background information on the 1995/96 Budget initiative which introduced an age limit for some partners of service pensioners from 1 October 1995.

BACKGROUND

2.Currently, the partner of a veteran is eligible for a partner service pension (PSP) if they are married to, or in a marriage like relationship with, a veteran in receipt of an age or invalidity service pension.

3.From 1 October 1995, PSP cannot be granted to non-veterans under the age of 50 years without dependent children.  Partners of Special Rate disability pensioners (T&PI) will be exempt from the age requirement.

4.Eligibility for existing partner service pensioners under 50 years, who have no dependent children or whose partner is not T&PI will not change.  Also, PSP eligibility for future partner service pensioners under 50 years, where pension was granted on the basis of dependant children, will continue even when those children cease to be dependent.

5.Future non-veteran partners under 50 years who are not eligible for PSP because they are not looking after a dependent child or severely handicapped veteran, may be eligible for Partner Allowance or another income support payment such as Job Search Allowance, Newstart Allowance, Sickness Allowance or Disability Support Pension from the Department of Social Security.

RATIONALE

6.This change is in line with the Government's “Working Nation” statement which encourages younger people to participate in the workforce.  Payment of partner service pension, regardless of age or any need to provide child care, does not encourage women to seek work in their own right.

7.Given the changes in employment opportunities for women, it is reasonable to expect younger women without dependent children to seek work rather than rely on income support from the Government.  For many, this minimum age requirement is irrelevant as most married women today are in the workforce.  With the increase in employment opportunities for women, the couple's best chance of finding some work and improving their incomes may come from the wife finding work.

LEGISLATION

8.The amendments to the VEA were introduced in the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Act 1995.  Royal Assent was received on 14 November 1995.

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

EFFECT OF DELAY IN ROYAL ASSENT

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

RELATED LEGISLATION

Veterans' Entitlement Act 1986

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

  • extension of eligibility to certain partners of veterans and deceased veterans (DI C02/96 refers);

  • ability to retain PSP eligibility in certain circumstances if the veteran ceases to be paid (DI C03/96 refers);

  • limiting members of a couple to the partnered rate where only one partner is receiving pension (DI C04/96 refers).

Social Security Act 1991

12.A consequential amendment has been made to the Social Security Act 1991 extending eligibility for Partner Allowance to partners of service pensioners in certain circumstances.  The change was introduced in the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Act 1995.  Royal Assent was received on 14 November 1995.

13.Partner Allowance was originally introduced by DSS in 1994 to provide assistance to the partner of a person receiving Job Search Allowance, Newstart Allowance, Sickness Allowance or Special Benefit.  From 1 July 1995, Partner Allowance is only paid to dependent partners of DSS pensioners and allowees who were born before 1 July 1955, have no dependent children and have little or no recent work experience.

14.With effect from 1 October 1995 eligibility for Partner Allowance is extended to a partner of a service pensioner where the partner is less than 50 years but over 40 years, has little or no recent work experience and is not receiving any other form of income support payment.

POLICY CHANGES

Eligibility

15.With effect from 1 October 1995, a person is eligible for a PSP only if the person:

  • is 50 years of age, or older; or

  • has one or more dependent children; or

  • regardless of age or dependent children, is the partner of a veteran receiving the T&PI rate of disability pension.

Partners not affected

16.The following categories of pensioner are not affected by this Budget initiative:

  • those people receiving partner service pension immediately before 14 November 1995 (the date of Royal Assent) who continue in payment after that date;

  • existing partner service pensioners who lose payability of pension some time after 14 November 1995 (eg because income exceeds the limits and pension reduced to NIL) and subsequently seek reinstatement of pension;

  • future partner service pensioners less than 50 years old but granted because of dependent children whose dependency ceases before the partner turns 50;

  • future partner service pensioners less than 50 years old granted because of dependent children who lose payability and subsequently seek reinstatement of pension;

  • partners of special rate (T&PI) pensioners.

Loss of Eligibility

17.Once granted, pension eligibility remains unless some other event occurs that impacts on that eligibility.  For example:

  • if the veteran loses basic eligibility by ceasing to be eligible for invalidity service pension, then the partner also loses eligibility;

  • if the veteran's and/or partner's service pension is reduced to nil and is subsequently cancelled under s56EC of the VEA.  Separate advice about the operation of this section of legislation will follow.

Limit members of a couple to the partnered rate

18.Any new grants of service pension after 1 October 1995 within a “married” assessment will be at the partnered rate except for illness separated couples  (DI C04/96 refers).

Extreme Disablement Adjustment

19.The Repatriation Commission has decided that a partner caring for a veteran receiving the extreme disablement adjustment (EDA) rate of disability pension, who is under 50 years of age with no dependent children, will be considered to automatically meet the requirement of “providing constant care for a severely handicapped veteran” for carer service pension (CSP) purposes.  Therefore, no examination of the level of care provided by the partner is necessary where the couple live in the same accommodation.  The usual investigation, however, should be performed if the couple are living apart.

20.A review should be placed for the partner's 50th birthday in order to advise of eligibility for PSP.  This is because payment of CSP is subject to continuing care of the veteran.

Partner not eligible for PSP but eligible for Partner Allowance

21.When a partner does not meet the eligibility criteria for PSP but it is apparent they may meet the eligibility criteria for Partner Allowance or another benefit or allowance from DSS, they should be advised as such.

22.It is recommended that the following procedures are followed:

At Lodgement of Claim for PSP

23.If it is apparent that the partner is unlikely to meet the PSP eligibility criteria, they should be advised as soon as possible that they may not be eligible for PSP and that they should test their eligibility with DSS for Partner Allowance or another benefit.  There are two points in claim processing where this could occur:

i.When the preliminary detail form is being completed; or

ii.When a new claim examiner is actioning the service pension claim form.

Action required

24.The examining officer should note, either on the form itself or on the 'check list' (being developed) that they have provided advice to the partner to test their eligibility at DSS.  The method of advice, ie standard letter, face-to-face or telephone should also be recorded.

At Determination of Claim

25.If the delegate decides that the partner is ineligible for PSP, a standard letter, see Attachment C, should be sent to the partner detailing the reasons for the rejection and again stating that she/he should test their eligibility for benefits from DSS.  The letter should contain the date the 'initial' claim for PSP was received at DVA, confirmation that their veteran partner is a service pensioner and the date the veteran was granted service pension.  DSS require this information to ensure maximum arrears are payable to the partner on grant of Partner Allowance or another pension or benefit.

Review

26.A review should be recorded for approximately six weeks prior to the partner's 50th birthday to ensure that those not receiving PSP are aware that they should test their eligibility for PSP.

PARTNERS WHO ARE VETERANS IN THEIR OWN RIGHT

27.In all new claim processing, particular attention should be paid to identifying female veterans in order that they receive their correct treatment eligibility.  Preliminary Details Form D501 and New Claim Application Forms D503 and D504 are being amended to identify partners who are female veterans.  A new claims 'check list' is also being developed which will provide procedural assistance.

28.The following points should be observed when processing new claims to ensure treatment eligibility is considered, appropriately determined by a delegate and correctly recorded on the system:

  • section 53D of the VEA extends eligibility for treatment at Departmental expense only to veterans receiving an age or invalidity SP etc.  Therefore treatment eligibility under this section can only be extended to a veteran who is eligible for SP in their own right;

  • currently, if husband and wife are both veterans in their own right and claiming SP as such, separate claim forms D503 must be lodged by both, ie a female veteran eligible for either age or invalidity SP cannot have her claim determined as such where she has only claimed PSP.  The D503 is in the process of being amended such that it will be a valid claim for both husband and wife where both are veterans (as well as being a valid claim for PSP where the partner is not a veteran).  Until such time as the amended form is approved it will be necessary to continue requiring separate forms for each veteran claimant;

  • where a female veteran is claiming PSP, ensure that she is aware of her entitlements ie eligibility for age SP at 55.5 years and eligibility requirements for invalidity SP - it may be that she should be claiming in her own right;

  • where the female veteran is claiming PSP because she is not otherwise eligible in her own right (eg not yet 55.5 years), it is a good client service to have her lodge form D2673 to determine her qualifying service;

  • where the female veteran has had qualifying service determined, the written advice to her should contain information on eligibility criteria for both age and invalidity service pension;

  • sub section 85(7) of the VEA extends eligibility for treatment at Departmental expense where a partner service pensioner is receiving a disability pension at 50% of the general rate or higher;

  • paragraph 85(4)(aa) of the VEA extends eligibility for treatment at Departmental expense to a female veteran who has rendered qualifying service during WWII;

  • It is important that those female veterans eligible for treatment under paragraph 85(4)(aa) and ss85(7) VEA are recorded correctly on the system (through EATERS) with treatment eligibility.  This ensures that if SP treatment eligibility is lost, ie SP cancelled, they would retain treatment eligibility through EATERS.

SYSTEM CHANGES

29.There will be a warning message on both the PP.PA (Personal Assessment) and PP.SU (Submission) screens for all new grants of PSP after 1 October 1995 where the partner is under 50 years of age and there are no dependent children in the assessment.  The warning messages which will appear are as follows:

  • On the PP.PA screen,

“SPS/DEF MUST BE QUALIFYING AGE FOR PSP”

  • On the PP.SU screen,

“PARTNER UNDER QUALIFYING AGE FOR SP”

30.As there are different age restrictions for PSP eligibility depending on the partner's circumstances, there can be no system bar on the granting of PSP.  It is therefore the Delegate's responsibility to ensure adherence to the rules.

ADVICES

31.A standard letter has been developed for use where a partner claims PSP but is ineligible, Attachment C refers.  This contains advice that their claim for PSP has been declined and also advice to test their eligibility at DSS.  A letter to DSS accompanies this advice and provides DSS with information that will ensure Partner Allowance or other pension or benefit can be granted from the earliest applicable date.

32.A standard letter has also been developed for use where a partner, who is ineligible for service pension because of the age requirement, turns 50 years, Attachment D refers.

33.The daily advices are to be amended to include the following paragraph where appropriate in new claim grants:

“Information concerning the date of effect of a service pension granted as a result of this claim may be disclosed to your partner for the purpose of testing their eligibility for a pension or benefit from the Department of Social Security.”

34.Attachment E offers some questions and answers to assist staff in answering enquiries and correspondence.

PRIVACY

35.To address any privacy concerns in regard to paragraph 31 above, Form D503 - "Claim For Service Pension By A Veteran Or Mariner" - is being amended to include the same disclosure statement as above at paragraph 33.

DELEGATIONS

36.No new delegations will be required for this initiative.

ATTACHMENTS

37.The following attachments are provided:

  • A — Legislative changes

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

  • C — Standard Letter - "Rejection of Partner Service Pension Because of Minimum Age Requirement"

  • D — Standard Letter - "Partner Turning 50 Years if Not on a PSP"

  • E — Questions and answers.

ENQUIRIES

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

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

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

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

W R MAXWELL

DIVISION HEAD

COMPENSATION

ATTACHMENT A

PARTNER INITIATIVES: LEGISLATIVE AMENDMENTS SUMMARY

ITEM

VALAB

Commencement Date

2.(3)

Veterans' Affairs (1995-96 Budget Measures) Legislative Amendment Act 1995:

Effective commencement date on 1/10/95

VEA

Definitions

10

38(1A)

Defines a disqualifying provision as used in subsection 38(1)

Application

1

35B(2)

Amends s35B to require people to make a claim if they wish to establish that their veteran partner or their deceased veteran partner had rendered qualifying service.

2

35C(1)(c), 35C(1)(d)

Amends s35C to allow claims by people, or others acting on their behalf,  who want to establish that their veteran partner or deceased veteran partner had rendered qualifying service

Eligibility

3

38(1)

Amendment makes this subsection subject to new subsection 38(1B)

4

38(1)(a)(ii)

Amended to protect PSP eligibility from the effects of all disqualifying provisions on the payability of the veteran's service pension.

5

38(1)(aa)

Extends eligibility for PSP to include people who would qualify for an age pension from DSS and who are members of a couple with a veteran who has rendered qualifying service.

6

38(1)(b)(ii)

Amended to protect PSP eligibility for a non-illness separated spouse from the effects of all disqualifying provisions on the payability of the veteran's service pension.

7

38(1)(c)(i)

Amended to delete requirement for the deceased veteran to have been in receipt of a service pension immediately prior to his or her death.

8

38(1)(c)(ia)

Extended to protect PSP eligibility for a widow or widower from the effects of all disqualifying provisions on the payability of the deceased veteran's service pension prior to his or her death.

9

38(1)(e)

Extends eligibility for PSP to include widow/ers who would qualify for an age pension from DSS and who were the partner or spouse of a deceased veteran who had rendered qualifying service.

10

38(1B)

Introduces the 50 year minimum age requirement for PSP where there are no dependent children.

10

38(1C)

Qualifies the application of new subsection 38(1B) to exclude from its operation those people under 50 years with no dependent children who, before the date of commencement (1/10/95) were eligible and had submitted a claim which had not yet been determined, or had already been determined to be eligible and their pension has not been cancelled.

10

38(1D)

Qualifies the application of new subsection 38(1B) to exclude from its operation those people whose partner is a veteran to whom section 24 ('Special Rate of Pension') applies.

11

38(3), 38(3A)

Subsequent to item 9, to include its provisons.

Payability

12

to

59

41(5) 41-B1,

41-C12,

41-D4, 41-D5,

41-F3, 41-F4,

42(4), 42-B1,

42-D12,

42-D16,

42-E4, & E11

42-G3, & G4

43(3), 43-B1

Amendments to these sections change the rate calculators in sections 41, 42, and 43 by deleting all reference to “partnered-partner receiving neither pension nor benefit”, to ensure that all members of a couple are paid at the married rate

Savings Provisions

62

197A

Refers to a set of 'savings and transitional provisions' at Schedule 5 designed to protect existing service pensioners who are members of a couple and are paid at the standard rate.

Schedules

63

Schedule 5

Details how the savings and transitional provisions operate to protect service pensioners in receipt of the higher rate of pension under the category “partnered-partner receiving neither pension nor benefit” from the effect of the above amendments (items 12 to 59) until the cumulative effect of any changes in their circumstances reduces their 'saved' rate of service pension to the partnered rate.

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

O N   L I N E

20/10/95

Item

34/COMP3

TO:

DEPUTY COMMISSIONERS

ALL STATES

FROM:

R J HAY

INCOME SUPPORT

COMPENSATION

ISSUE:

Impact Re delay in Royal Assent for partner initiatives

ACTION:DATE DUE:

AS PER MINUTE

NATIONAL OFFICE DIVISION:

COMPENSATION DIVISION, INCOME SUPPORT BRANCH

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

Background

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

①⇩ Minimum age set for certain partner service pension applicants

②⇩ Limit members of a couple to the partnered rate

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

④⇧ Retention of eligibility when veteran ceases to be paid

⑤⇧ Extension of Commonwealth Seniors Health Card eligibility

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

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

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

disability pension

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

Action to be taken

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

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

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

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

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

⑥ & ⑦Current policy will continue to apply.

⑧Current processes continue to apply.

Recording of claims for partner service pension (PSP)

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

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

Follow up

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

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

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

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

R J HAY

BRANCH HEAD

INCOME SUPPORT

ATTACHMENT C

REJECTION OF PARTNER SERVICE PENSION: MINIMUM AGE

Reference:{Partner Reference}

Contact:{Contact Name}

Telephone:{Contact Phone}

{Partner's Name}

{Partner's Street}

{City} {State} {Postcode}

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

I refer to your application for a Partner Service Pension from this Department dated {date}.

In order to receive this pension you must be the partner, widow or widower of a veteran with qualifying service. As you have no dependent children, and the veteran is not in receipt of a Special (Totally and Permanently Incapacitated) Rate Disability Pension , you must also have reached a minimum age of 50 years.

From the information which you provided on the application form, you do not meet this minimum age requirement and therefore you are not yet eligible to receive a Partner Service Pension. Your application has accordingly been declined.

If you are not satisfied with any aspect of this decision, you may apply to have the decision reviewed by a Senior Delegate of the Repatriation Commission.  If you decide to apply for a review, you must do so within three months of receiving this letter.

Although you are not eligible to receive a service pension from this Department, you may meet the eligibility criteria for Partner Allowance or another benefit or allowance from the Department of Social Security.

I suggest you test this eligibility as quickly as possible and the information on the attached page is provided to assist your application with that Department.

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

Yours sincerely

{Title}

Contact:{Contact Name}

Telephone:{Contact Phone}

{Regional Office}

Department of Social Security

{Number and Street}

{City}{State}{Postcode}

To whom it may concern:

{Mr/Mrs}{Partner's Name} is the partner of a veteran in receipt of a service pension which was granted on {date of grant of veteran's SP}. {Mr/Mrs}{Partner's Name} initially claimed a Partner Service Pension from the Department of Veterans' Affairs on {Date of initial claim for PSP}

This information is provided to assist {Mr/Mrs}{Partner's Name} in {his}/{her} application for Partner Allowance or other form of Income Support from your Department.

Yours sincerely

{Title}

ATTACHMENT D

Reference:{Partner Reference}

Contact:{Contact Name}

Telephone:{Contact Phone}

{Partner's Name}

{Partner's Street}

{City} {State} {Postcode}

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

I am writing to you concerning your eligibility to receive a Partner Service Pension from this Department.

As you may be aware, in order to receive this pension a {partner/widow/widower} of a veteran service pensioner must meet a minimum age requirement of 50 years.

Our records indicate that at your next birthday you will be turning 50 years and may therefore be eligible for this pension.

Should you wish to lodge a claim, please contact this Office at the above address and the appropriate claim forms will be forwarded to you.  This Partner Service Pension would be payable instead and not in addition to, any payment you may be receiving from the Department of Social Security.

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

Yours sincerely

{Title}

ATTACHMENT E

QUESTIONS AND ANSWERS

Minimum age set at 50 for partner service pension for partners without children.

Q1If the partner is less than 50 prior to or post 1/10/95 will they continue to receives PSP?

A — Those clients who are receiving PSP, or whose PSP is payable at nil rate, as at 1/10/95 will retain eligibility even if their rate of service pension is reduced and payable at nil after that date.

Q2If the veteran has lodged a claim prior to 1/10/95 and the partner is not 50 on that date, will the partner be eligible?

A — Providing the veteran and partner meet all of the eligibility criteria prior to 1/10/95 and the effective date is pre 1/10/95, the partner will be eligible.

Q3If a married couple are receiving pension/benefits from DSS and the veteran is granted service pension from DVA after 1/10/95 will the partner, if under 50 with no dependent children, receive PSP?

A — No, not until the partner turns 50 years.  The partner may still be entitled to pension/benefits from DSS.

Q4If a veteran is receiving SP and their partner (who is under 50 with no dependent children) is receiving a DSS pension (DSP) will the partner be able to transfer to the PSP from DVA after 1/10/95?

A — No, they will need to apply and have an effective date prior to 1/10/95.  There are currently 24 cases nationally where the veteran has a spouse at DSS who is under 50 and has no dependent children.  All have been contacted and informed of the potential impact of this initiative.  Many have chosen to remain at DSS.

Q5Will a partner who is not currently in payment because they are not an Australian resident be eligible after 1/10/95?

A — They will need to satisfy the age requirement or have dependent children as well as satisfying the other criteria for PSP.  However, if they have lodged a claim (SP2) and meet all of the partner eligibility criteria, including residency, prior to 1/10/95, the age does not matter.

Q6If the partner of a veteran is under 50 with no dependent children, what type of pension/benefit would he/she be eligible for?

A — If the veteran is receiving a T&PI pension, the age limit will not apply and the partner will be eligible for PSP.  The partner may test their eligibility for a carer service pension if they are caring for a 'severely handicapped veteran'.  Otherwise the partner could test their eligibility for partner allowance, job search/newstart allowance, special benefit or DSP from DSS.

Q7If the veteran and spouse separate after 1/10/95, will the spouse, if under 50 with no dependent children, be able to continue to receive PSP?

A — Yes the same rules apply as at present.  (Also see DIs C03/96 "Retention of Eligibility when Veteran Ceases to be Paid" and DI C04/96 "Limit Members of a Couple to the Partnered Rate").  However, if the veteran loses eligibility and SP is cancelled, the spouse also loses eligibility.  Should the veteran regain eligibility the spouse may reapply but would need to meet the new eligibility requirement.

Q8If the defacto wife (under 50 with no dependent children) leaves the veteran and then returns some months later, would the defacto be eligible for the PSP when he/she returns to live with the veteran?

A — No, as a defacto wife, eligibility for PSP would be lost and pension cancelled on separation (loss of eligibility).  If the person returns to live in a defacto relationship with the veteran, SP paid to the veteran will be reduced to the partnered rate and the defacto partner will not be eligible to receive PSP but may be eligible for some other type of pension /benefit eg carer service pension or a DSS payment.

Q9Is the non-illness separated spouse of a T&PI veteran exempt from the minimum age requirements?

AIf the legally married partner of a TPI veteran is receiving PSP prior to the permanent separation, his/her eligibility for PSP continues.  If eligibility for PSP is lost for whatever reason and the spouse subsequently reapplies for pension, the new minimum age eligibility rules apply.  Effective from 1/10/95, only the partners (not non-illness separated spouses) of T&PI veterans are exempt from the minimum age requirement when claiming SP.