C32/1997 1996/1997 BUDGET INITIATIVE: DVA TO PAY DSS AGE PENSION TO DISABILITY PENSIONERS

Purpose of instruction

This Departmental Instruction provides policy, procedural and systems information relating to the administration and payment of the Department of Social Security age pension, by the Department of Veterans' Affairs.

Authorised by

PETER REECE

DIVISION HEAD

COMPENSATION and SUPPORT

DVA will provide age pension to veterans as an agent of DSS.  The success of the agency agreement depends on THE COMMITMENT OF ALL STAFF, TO PROVIDE THE BEST CLIENT SERVICE AVAILABLE.

Background

Australian veterans in receipt of disability pension (DP) through the Department of Veterans' Affairs (DVA), who do not qualify for service pension, must obtain income support through the Department of Social Security (DSS).  This means they receive payments from two separate Departments.  This initiative arose in response to numerous representations to the Government, from ex-service organisations (ESOs), to simplify the delivery of payments.

Choice of age pension agency

The Government announced in the August 1996 Federal Budget, that veterans receiving DP from DVA, and age pension from DSS, will have the choice of either DSS or DVA to pay their age pension.  This means DVA will be an 'agent' of DSS, for the administration and payment of age pension to this group of veterans.  Eligible partners of these veterans may also choose to receive their age (or wife) pension from DVA.

Commencement

The commencement date is 1 July 1997.  In addition, the DSS Secretary must give his approval before DVA may pay age pension.

Target population

Approximately 26,000 pensioners (15,000 veterans, and 11,000 partners), are initially eligible to receive their age pension from DVA.

One stop shop

Offering veterans the choice of receiving their age pension from DVA, accords the benefits of a 'one stop shop', where compensation, income support and treatment entitlements can be paid by one Department.

Holistic service

The 'one stop shop' builds on DVA's commitment to the provision of a best practice client service, whereby the administration of payments is simplified and unnecessary duplication of effort by separate Government departments is reduced.  A major benefit of this is the delivery of a more holistic service, by a Department whose prime concern is the welfare of the veteran community.

Evaluation

The agency arrangement between DVA and DSS will be evaluated after two years, with report to Cabinet in the 1999/2000 Budget context.

Introduction

The agency agreement between DVA and DSS has been ratified in a formal Memorandum of Understanding (MoU).

Definition

The MoU is a binding agreement, signed by the Secretaries of both DSS and DVA, that outlines the delivery of age pension services by DVA, against DSS standards.

Purpose of MoU

The MoU provides the terms of reference by which DVA is evaluated against it's ability to deliver age pension services as an agent of DSS.  The MoU sets standards for:

• overall service delivery and performance;
• payment and administration;
• reporting arrangements; and
• provision of funding from DSS.

In this section

This section contains the following topics:

Topic

See Page

Overview

6

Client Service

7

Service Delivery Standards

8

Administrative Issues

12

Evaluation

13

DVA agency objective

The objective of the DVA agency is to provide a holistic, simplified approach to the provision of treatment, compensation and income support services to age pensioners who are Australian veterans, and their eligible partners.

Corporate goals

The establishment of DVA as an age pension agency for the veteran community reflects the corporate goals and objectives of both DVA and DSS.  These goals are reflected in the mission statements of both departments, as shown in the table below.

DVA mission statement

DSS mission statement

To serve Australia's veterans, their war widow(er)s and dependants, through programs of care, compensation and commemoration.

To deliver social security entitlements with fairness, accuracy and efficiency.

DVA vision

In the provision of age pension services to the veteran community, DVA will seek to meet the standards set by our Corporate vision.  The DVA vision is, “to be the best service delivery department in the public sector, by doing the right thing, the right way, the first time”.

Services available

DVA has undertaken to provide the same, high level of client service, that is available to all income support pensioners.  Pensioners receiving their age pension from DVA will have access to the many services and sources of information available to other DVA customers.

Introduction

The service that DVA provides to age pensioners, will be measured against DSS performance standards.  DVA will set the same targets as DSS, with regard to meeting those standards.  If the targets vary, DSS will notify DVA of the changes. It is critical that DVA achieve the performance standards outlined in the MoU.

Performance standards categories

The performance standards are divided into the following categories:

• Processing- timeliness and accuracy;
• Customer enquiries- timeliness; and
• Customer satisfaction.

Processing- timeliness & accuracy

The tables below show the current performance standards and targets for the age pension categories applicable to the timeliness and accuracy of processing.

Claims Processing

National Standard

National Target

Accuracy

100% accuracy of decision

Timeliness

payment within 28 days of new claim lodgement

80%

Reviews & Appeals

National Standard

National Target

Authorised Review Officer

14 days to finalise, after request lodged at Regional Office (where customer left without adequate means of support)

95%

28 days to finalise after request lodged at Regional Office (all types of reviews)

75%

Advice mockups (continued)

Reviews & Appeals

National Standard

National Target

Social Security Appeals Tribunal

28 days to lodge statement after receiving advice of appeal from National convenor

100%

Reviews and Appeals

National Standard

National Target

Administrative Appeals Tribunal

28 days to lodge statement after receiving advice of appeal from National convenor

100%

Financial Recovery

National Standard

National Target

Overpayment raising

Overpayments raised within 56 days of rate reduction or cancellation

80%

Prosecutions

cases referred to AFP/DPP within 56 days of overpayment raising

70%

Customer inquiries-timeliness

The tables below show the current performance standards and targets for the age pension categories applicable to the timeliness of responding to customer inquiries.

Teleservice Centre

National Standard

National Target

Referral to action officer

within 1 minute of initial response

85%

Office Waiting Time

National Standard

National Target

Reception

customer seen within 10 minutes of appointed time

95%

Advice mockups (continued)

Office Waiting Time

National Standard

National Target

Appointments for interview

customer interviewed within 10 minutes of appointed time

95%

Referral to action officer

customer seen by appropriate officer within 20 days of being seen at reception

95%

Ministerial Correspondence

National Standard

National Target

Ministerial correspondence

reply prepared within 21 days of receipt within the department

90%

Customer satisfaction

The table below shows the current performance standards and targets for the age pension category applicable to customer satisfaction.

Customer Satisfaction

National Standard

National Target

Public contact

customer satisfied with service provided at public contact areas

85%

Privacy principles

DVA staff will fully comply with privacy principles relating to both Departments.  These principles do not differ from the privacy principles that staff currently adhere to.

Legislative ref: Privacy Act 1988.

More information: may be obtained from the departmental Privacy and Freedom of Information Officer, Colin Hassall on (06) 289 6208.

Confidentiality provisions

DVA staff will fully comply with the confidentiality provisions relating to the administration of the Social Security Act 1991 (SSA).  These provisions deal with access to and use of, protected information.  There are severe penalties for non-compliance.

Legislative Ref: Part 7.2 Information Management, Division 2- Confidentiality, sections 1312 to 1321A SSA.

Note:  You may also hear these provisions referred to colloquially as 'secrecy' provisions.

Cross Ref: Section B - “Confidentiality Provisions”.

Duty of care

As delegates of the Secretary, under the SSA, DVA officers may process and determine age pension claims, assessments and reviews.  This entails a legal obligation to ensure that social security entitlements are administered in a fair and accurate manner, consistent with the SSA.

Witness protection

If a case arises where a pensioner is part of a witness protection scheme, administered by a law enforcement agency of the Commonwealth, a State or Territory, please refer urgently to the National Office, Business Administration Unit for further information on correct administration of the case.

Note:  It is not likely that DVA will receive any of these cases.

Administrative activity

Age pensioners will be subject to the same administrative activity as other DVA income support pensioners.  The types of activities undertaken are shown in the following table.

Area of Activity

Activity

Claims

• new claims
• transfers
• reviews
• death processing
• appeal processing

Fringe Benefits

• provision of Pensioner Concession Cards
• client confirmation arrangements with fringe benefit and concession providers

Debt Management

• issue of obligations
• data matching program
• overpayment processing
• overpayment recovery
• investigations and prosecutions

Service Standards

• quality assurance program
• performance monitoring
• client communication

Systems

To enable this administrative activity to occur, the DVA online processing system has been modified to enable the storage and processing of age pension claims and assessments.

The Claims Management System has been modified to enable management information to be stored and tracked for periodical provision of data to DSS and DVA management.

More information: Section H - Systems Changes.

Evaluation and report to Cabinet

The agency agreement between DVA and DSS will be evaluated after 2 years, from 1 July 1997.  Evaluation will be two fold, with full evaluation undertaken between November 1998 and January 1999, with subsequent report to Cabinet in the 1999/2000 Budget context.

Initial evaluation

A preliminary evaluation will be conducted in December 1997, to measure the initial:

• take up rate on implementation; and
• impact on DVA.

Purpose of final evaluation

The full and final evaluation, will provide information about the overall effectiveness and efficiency of this initiative, so Cabinet may determine it's value as a continuing program.  It will measure the:

• overall take up rate;
• level of client satisfaction;
• impact on DVA, including on staff resources; and
• success of DVA at meeting performance standards.

Evaluation costs

Costs associated with collecting data for the evaluations, will be borne by the respective Departments.

SSA references

Age pension paid by DVA, will be administered under the Social Security Act 1991 (SSA).  The table below shows where to find relevant references in the SSA.

Note: to enable easier use of OPAL, legislative references throughout this DI include the relevant SSA Part.  For example, Part 1.2 denotes Chapter 1, Part 1.2.

Topic

Part

Starting from Section

Income test definitions

1.2

8

Assets test definitions

1.2

9

Financial Assets, Retirement Funds & Annuities definitions

1.2

11

Age Pension

2.2

43

Wife Pension

2.4

147

Pension Rate Calculator

3.2

1064

General provisions relating to the ordinary income test

3.10

1072

General provisions relating to the assets test

3.12

1118

Confidentiality provisions

7.2

1312

SSA amendments

The amendments made to the SSA are outlined in this section.

Note: No amendments to the Veterans' Entitlement Act 1986 (VEA) were necessary.

Delegations

The Secretary of DSS may delegate his power to perform various functions under the SSA, to DSS staff, to allow them to perform those functions.  The Secretary's powers have also been delegated to DVA staff, to allow them to administer the SSA.

More information

More information about the SSA, and the Guide to it's interpretation and administration, may be obtained by accessing the DSS Online Policy and Legislation (OPAL) system, via the DVA Local Area Network.  How to access OPAL is shown later in this section.

In this section

This section contains the following topics:

Topic

See Page

Overview

14

Social Security Act 1991 Amendments

15

Confidentiality Provisions

16

OPAL

17

Introduction

As part of the Veterans' Affairs Legislation Amendment (1996-97 Budget and Other Measures) Bill 1997 (VALAB 1997), the Social Security Act 1991 was amended.  These amendments allow DVA to pay and administer the age pension to certain disability pensioners and their partners.

Commencement

The commencement date for the initiative is 1 July 1997.  In addition to the commencement date, the DSS Secretary must give approval before DVA may pay age pension.

Opposing paydays

All provisions of the SSA allow an agency arrangement to proceed, with the exception of opposing paydays.  DVA pensions are paid fortnightly one week, and age and wife pension are paid fortnightly on the other week.  The amendments allow the Secretary of DSS to determine that certain age pensioners and wife pensioners will be paid on the DVA payday.

Cross Ref:: Section C - “Payment Issues”.

Half instalments

Amendments were also made to the SSA, so that whenever an age pensioner decides to move between DSS or DVA, the receiving department pays an initial half instalment of pension, to prevent windfall gains on transfer.

Cross Ref:: Section C - “Payment Issues”.

SSA sections amended

The main SSA sections amended, relating to age pension and wife pension, are shown in the table below.

Description of section

Age pension section

Equivalent Wife pension section

Payment by instalments

57

161

Calculation of half instalment

59A

163A

Introduction

DVA staff must fully comply with the confidentiality provisions relating to the administration of the SSA.  These provisions deal with access to, and use of, protected information.  There are severe penalties for non compliance.         NB: All staff should make themselves familiar with these provisions.

What is protected information?

Protected information is any information that:

• is held in the records of the department; or
• was held in the records of the department; or
• there is no information about a person, held in the records of the department.

Note: “the department” also includes DVA records about age pensioners.

Legislative Ref: subsection 23(1) SSA, Part 1.2.

Offences under these provisions

With regard to protected information, it is an offence to:

• access it without authorisation;
• use it without authorisation;
• solicit disclosure of it; and
• offer to supply it.

Legislative Ref: sections 1312A, 1312B, 1316, 1318 SSA, Part 7.2.

What is authorisation?

If you make unauthorised use of, or access protected information, it means that although you used or accessed this information intentionally, you were not authorised to do so under either the Farm Household Support Act 1992 or the Social Security Act 1991.

Penalties for non compliance

Penalties for non compliance with the confidentiality provisions relating to protected information are severe.  Penalties are:

• imprisonment for 2 years; or
• an appropriate fine; or
• both.

Full legislative references

The full confidentiality provisions are contained in sections 1312 to 1321A SSA, Part 7.2.

What is OPAL?

OPAL is the online policy and legislation system used by DSS.  The DVA equivalent to OPAL is the General Orders Service Pension (GOSP), found in “The General” on your Local Area Network (LAN).

Useful features

OPAL has many features including several Acts and policy manuals.  Some of the features of OPAL, relevant to DVA staff administering age pension, are electronic versions of the:

• Social Security Act 1991;
• Guide to the Administration of the Social Security Act;
• Review and Appeals Handbook; and
• Data Matching Program (Assistance and Tax) Act 1990.

Starting OPAL

The table below shows you how to start OPAL in Windows 95.

Step

Action

1

Click on the “Start” button

2

Click “Departmental” option

3

Click “Applications” option

4

Click “Reference Tools” option

5

Click “OPAL” option

6

The screen below should appear

Viewer functions

Viewer functions on OPAL are the same as the General, because they use the same software.  This means that commands on the menu operate in the same way.

Example: backtrack, history.

Quick Ref button

If you click on the “Quick Ref” button, you will find a useful online guide on how to use some of the features of OPAL.

Social Security Act button

If you click on this button, a table of chapters of the SSA will appear for you to choose from.

Example: chapter 2 contains information on age and wife pensions.

Guide to Act button

If you click on this button you will open the table of chapters of the Guide to the Administration of the Social Security Act, policy manual (like our GOSP).

Example: chapter 5 deals with age pension and chapter 27 deals with income.

Note: the chapters in the Guide do not correspond to the chapters in the SSA.

Guide Index button

The Guide Index is like the GOSP Index.  If you click on the Guide Index button, you can type in a word relating to the topic you want information on.  Then select from the topics displayed and click on “display” to show the information.

Manuals button

If you click on the Manuals button, a list of manuals available on OPAL will be displayed.  Click on the manual you wish to view, and the table of contents will be displayed.

Example: Review and Appeals Handbook.

Definitions Index button

The Definitions Index is an index of all the definitions contained in the SSA.  When you click on this button, you select a letter of the alphabet and all the definitions beginning with that letter are displayed, along with the corresponding section of the SSA.  You then click on the definition you want and it is displayed.

Example: select P for the definition of protected information.

Legislation Index button

When clicked, the Legislation Index displays the titles of all Acts contained in OPAL.  Click on the Act and it will display it's table of contents for you to choose from.

If you are after the SSA, it is quicker to use the Social Security Act button, as described above.

Medical terms

Although not specifically relevant to the administration of age pension, click on this button for a definition of a medical term you wish to look up.  It would be useful to staff in the compensation areas of DVA and for income support staff who wish to gain a better understanding of the conditions their clients are suffering from.

Example: orthotics.

Switching between OPAL and General

Follow the steps in the table below, to switch quickly from OPAL to the General, without having to open the General through the main menus.

Note: this works in both OPAL and the General.

Step

Action

1

Assume you have opened and are working in OPAL

2

Click on File, located at the top left of the screen.  At the bottom of the drop box that appears, there will be an option for both OPAL and the General that look similar to this:

1 \\QSTAFP1\DATA\NATDATA\OPAL\OPALRSCH.EPB

2 QSTAFP1\DATA\NATDATA\GENERAL\GENERAL.EPB

3

Select and click on the General option and it opens automatically

References to “Part”

Throughout this DI, you will find the term “Legislative Ref:”, followed by the section of the SSA that applies to the subject being discussed.  To allow you to find the section quickly on OPAL, the reference is followed by the Part of the SSA that the section is in.  The Part is useful as a reference because it also denotes the Chapter that you will find the section in.  Knowing the Chapter is useful because this is usually the first selection you make in OPAL when using the Social Security Act button.

Example: Part 2.2 means Chapter 2, Part 2.2.

Example: Part 6.1 means Chapter 6, Part 6.1.

Introduction

This section deals with the inter-related issues of eligibility for age pension, payment of age pension and overseas portability of age pension.

In this section

The following table shows the topics dealt with in this section.

Topic

See Page

Overview

20

Eligibility Criteria and Issues

21

Payment Issues

24

Lump Sum Advance

26

Calculation of Age Pension

27

Portability

30

International Agreements

31

Introduction

Eligibility criteria apply to veterans and partners who wish to receive their age pension from DVA.  The criteria are explained below.

Age pension eligibility

A person is eligible for an age pension if the person has reached pension age and any of the following apply.  The person:

• has 10 years qualifying Australian residence;
• has a qualifying residence exemption for an age pension;
• was receiving a widow B pension, a widow allowance, a mature age allowance or a partner allowance, immediately before reaching that age; or
• if the person reached pension age before 20 March 1997—the person was receiving a widow B pension, a widow allowance or a partner allowance, immediately before 20 March 1997.

Legislative Ref: subsection 43(1) SSA, Part 2.2.  For pension age see subsections 23(5A), (5B) (5C) and (5D) SSA, Part 1.2.

Male veterans

To be eligible for an age pension from DVA, a male veteran must:

• be an Australian veteran;
• receive DVA disability pension;
• be at least 65 years old;
• receive DSS age pension, or be eligible to receive it; and
• not receive service pension or any other income support pension from DSS or DVA.

Legislative Ref: “disability pension” as defined by paragraphs (a), (b) and (c) in section 5Q VEA.

Note: for administrative simplicity, those veterans who do not receive disability pension, but who have accepted disabilities and receive PA under paragraph 118A(1)(c) VEA, are eligible.

Female veterans

Female veterans must meet the same eligibility criteria as male veterans, with the exception of age.  Female veterans must be at least 61 years old.

Note: Age equalisation applies, so that female pension age will equal male pension age by 1 July 2013.

Female partners

To be eligible for an age pension from DVA, a female must be the partner of a male veteran who meets all of the eligibility criteria listed under 'male veteran' above.  The female partner must also:

• receive DSS age pension or wife pension, or be eligible to receive DSS age pension; and
• not receive service pension, or any other income support pension from DSS or DVA.

Note 1: no new grants of wife pension have been made since 1 July 1995.

Note 2: there is no age eligibility criteria for wife pension.

Male partners

To be eligible for an age pension from DVA, a male must be the partner of a female veteran who meets all of the eligibility criteria listed under 'female veteran' above.  The male partner must also:

• be at least 65 years old;
• receive DSS age pension or be eligible to receive DSS age pension; and
• not receive service pension, or any other income support pension from DSS or DVA.

Note: male partners cannot receive wife pension.

Non-pensioner partners

Where an age pensioner has a partner who does not qualify for pension, the rate of pension paid to the age pensioner is still the partnered, maximum basic rate.

Example: partner under 50 years old.

Legislative Ref: point 1064-B1 SSA, Part 3.2.

Age pensioner goes overseas

Eligibility for age pension is lost and pension cancelled, if an age pensioner leaves Australia without obtaining a departure certificate, and is away for more than 6 months.  On return to Australia the person must lodge a claim, if they wish to receive age pension.

Note: a departure certificate should be obtained from DVA prior to overseas departure, to avoid having to reclaim pension, if away for more than 6 months.

Legislative Ref: sections 1218, 1219 SSA, Part 4.2 and sub section 43(2) SSA, Part 2.2.

Cross Ref: Section D - “New Claims” and Section C - “Portability”.

Partner eligibility

The table below shows how a non veteran partner's eligibility for age (or wife) pension is affected by certain events, where both partners receive their age (or wife) pension from DVA.

IF...

THEN the partner's eligibility...

veteran dies

continues & partner is reassessed at the standard rate

married couple separate

continues

married couple divorce

is lost & partner should test eligibility for other DSS income support

defacto couple separate

is lost & partner should test eligibility for other DSS income support

Eligibility exclusions

DVA will not pay age pension to the following groups:

• veterans who receive an income support pension other than age pension;
• partners, of eligible veterans, who do not receive age pension or wife pension;
• Commonwealth and Allied veterans (and their partners), unless they have dual eligibility (i.e. they receive an Australian DP).

Note: an 'eligible veteran' is a veteran who satisfies the requirements of either 'male veteran' or 'female veteran' above.

Introduction

A number of issues relating to the payment of age pension are dealt with in this topic.

No changes to entitlements

No changes to the rules governing veterans' entitlements will result from the implementation of this initiative.  With the exception of the application of normal Consumer Price Index increases, this means that there will be no changes to the payment rates of:

• income support pension;
• income support allowances;
• compensation payments;
• compensation allowances;
• treatment entitlements; or
• fringe benefits.

Opposing paydays

DVA and DSS pay age pension fortnightly, on alternate Thursdays.  To allow DVA to pay age pension on the DVA payday, the SSA has been amended.  This has created the need for the half instalment rules, outlined below.

Legislative Ref: sections 57 and 161 SSA, Parts 2.2 and 2.4.

Cross Ref: see Section B - “Social Security Act 1991 Amendments”.

Half instalment

Because DVA and DSS pay age pension on alternate Thursdays, whenever a pensioner elects to transfer between DSS and DVA, a half instalment of pension must be paid by the 'receiving' department on the first payday, to prevent an overpayment of pension occurring.  The half instalment only applies to the basic rate of age pension and rent assistance components of the payment.  All other amounts are paid in full.

Note:  The half instalment rule does not apply at the time age pension is granted.

Legislative Ref: sections 59A and 163A SSA, Parts 2.2 and 2.4.

Cross Ref: see Section B - “Social Security Act 1991 Amendments”.

Direct debit service not available

DVA is currently not able to provide a service to pensioners in government housing, where the payment of their rent is debited from their age pension payment and credited directly to the housing authority.  Pensioners intending to transfer to DVA, should be advised of this fact.

Exception: the South Australian State Office are able to offer this service to age pensioners paid by that State.  A special register method is used whereby all pension payments are sent to the SA Housing Trust, which then deducts rent and pays the remainder to the pensioner.

Note: Although the service will be available eventually, the timing is not known at this stage.

Taxation deductions

Age pension, including age pension paid to blind pensioners, is taxable.  Wife pension is also taxable.  Some age pensioners have their tax instalments deducted directly from their pension.  DVA will provide this service to age pensioners.  Deductions will be made via DVA's Tax Processing System (TPS).

Note: Compare DVA taxation rules by using the General's GOSP Index.  Look up “taxation” and view “non-taxable payments”.

Group certificates

DVA will issue group certificates to DVA age pensioners and their partners.  DVA will commence issuing group certificates, and where applicable, Medicare Levy Exemption certificates, for the 1997/98 financial year (i.e. issued in July 1998).  DSS will issue group certificates for the 1996/97 financial year.

Suspensions and limitations

Where a DSS pensioner has an existing limit or suspension, DVA will continue these restrictions on payment.

Background

Like DVA pensioners, age pensioners are able to access an advance of their pension, for example, to meet unplanned living expenses.  They are able to receive a minimum advance of $250, up to a maximum of $500 per annum, to assist in meeting such expenses.

Guide Ref: Chapter 49

Legislative Ref: sections 1061A to 1061EL and 1206H to 1206P SSA, Parts 2.22 and 3.16A.

Pre-existing advance

At any time, if an age pensioner transfers from DSS to DVA, any outstanding lump sum advance made by DSS before transfer, must continue to be recovered by DVA, at the same recovery rate agreed to at DSS.

Method of recovery

The current DVA recovery method of placing a limitation on the pension and tracking the 'debt' through the online LSA system, will also be the method used to recover outstanding advances from age pensioners.

Continuity of recovery

Where a DSS age pensioner transfers to DVA age pension, no recovery of outstanding lump sum advance will be made on the first DVA pension payday, because only a half instalment of pension is received.  Normal recovery will commence from the first full instalment of DVA age pension.

1997/98 budget changes

The changes and simplification to the LSA rules being introduced by DVA in the 1997/98 Budget, do not apply to DSS age pensioners paid by DVA.

SSA reference

Calculation of age pension is contained in section:

• 1064 SSA for pensioners who are not blind; and
• 1065 SSA for pensioners who are blind.

Definition of maximum basic rate

The maximum basic rate of age pension is the maximum amount of age pension a person can receive.  The maximum basic rate includes only the age pension component.  In accordance with the SSA, it is calculated as an annual rate.

Legislative Ref: points 1064-A1 and 1065-A1 SSA, Parts 3.2 and 3.3 .

Family situation

A person's maximum basic rate of age pension depends on whether they are:

• not a member of a couple;
• partnered;
• member of illness separated couple;
• member of respite care couple; or
• partnered (partner in gaol).

Legislative ref: points 1064-B1 and 1065-B1 SSA, Parts 3.2 and 3.3.

Note: The maximum basic rate of age pension, paid to veterans on DP, is the same as the maximum basic rate of service pension.

Calculating pension

Use the table below to understand the steps involved in the calculation of age pension, for veterans and their partners (who are not blind).

Note: all amounts in the calculation are annual amounts

Legislative Ref: point 1064-A1 Method Statement SSA, Part 3.2.

Step

Action

1

Work out the person's maximum basic rate.

2

Work out any rent assistance (RA) payable.

Note 1: Do not do this step if the person also has children, as DSS pay child related RA.

Note 2: DP is not counted as income for RA.

3

Add steps 1 + 2.  This equals the maximum payment rate.

4

Apply the ordinary income test.  This works out the income reduction.

Note: DP is counted as income under the ordinary income test.

Advice mockups (continued)

Step

Action

5

Minus the income reduction (step 4) from the maximum payment rate (step 3).  This equals the income reduced rate.

6

Apply the assets test.  This works out the assets reduction.

7

Minus the assets reduction (step 6) from the maximum payment rate (step 3).  This equals the assets reduced rate.

8

Compare the income reduced rate (step 5) with the assets reduced rate (step 7).

9

Use the table below to work out the rate of pension.

10

Add any Remote Area Allowance payable (RAA), (including child related RAA), to the rate of pension.

Note: only add RAA if the rate of pension at step 9, is greater than nil.

Rate of pension

The table below shows you what the rate of pension is, after following steps 1-9 in the table above.

IF the...

THEN the rate of pension is the...

income reduced rate is lower

income reduced rate

assets reduced rate is lower

assets reduced rate

income and assets reduced rates are exactly equal

income reduced rate

Pharmaceutical allowance not paid with age pension

Pharmaceutical Allowance (PA) is not added to the maximum basic rate of age pension.  This is because veterans on DP receive PA from DVA as part of their DP entitlement.

Legislative Ref: points 1064-C2, 1064-C3 and 1065-C2, 1065-C3 SSA, Parts 3.2 and 3.3.

Exception: where a couple are illness separated, the standard rate of PA is paid to both the veteran (with DP) and the non-veteran partner (with age pension).  Although this is DSS policy, it is not noted in the SSA.

Rate at which age pension ceases

Because PA is not normally part of the age pension calculation, when DP is in payment, the income and assets rates at which age pension ceases to be payable, are slightly lower for age pensioners who receive DP, and their partners.

Note: the rates at which age pension ceases, work out the same as for income support supplement recipients.

Child payments  not paid with age pension

Child payments are not added to the maximum basic rate of age pension.  This is because child payments (including rent assistance) come under the Family Payments program.  However, DVA must apply the additional income free area (AIFA) for dependent children, when calculating age pension.

Exception: child related RAA, that is paid with age pension.

Note: For age pensioners, the AIFA for non-prescribed student children ceases at 22 rather than 25 years.

Allowances paid with age pension

In addition to the rate of age pension (which includes maximum basic rate and any rent assistance components) and remote area allowance payable, the following allowances are also payable to age pensioners:

• quarterly telephone allowance (section 1061S SSA);
• bereavement payments (sections 82-91 and 186-192 SSA) ; and
• child related payments (payable by DSS).

Exception: some veterans receive TA as part of their DP entitlement.

Note: These allowances are paid under separate rate calculators.

Further reduction of rate

The rate of pension may be further reduced if the veteran or partner receives either:

• compensation; or
• foreign pension.

More information: see Section E - “Compensation Affected Age Pension” and “Comparable Foreign Payments”.

Definition

"Portability" is the term used to refer to the eligibility of a person to continue to receive an Australian pension while overseas.

What portability arrangements apply to age pensioners?

The same portability arrangements that apply to service pensioners and disability pensioners, will apply to age pensioners paid by DVA.  This generally means that a person's right to commence, or to continue to be paid an age pension is not affected if they leave Australia, providing that they obtain a departure certificate.

Legislative Ref: section 1213 SSA, Part 4.2.

Cross Ref: departure certificates also under Section C - “Eligibility Criteria and Issues” and Section D - “New Claims”.

Some wife pensions not portable for more than 12 months

Some wife pensioners who are overseas for more than 12 months may lose eligibility for wife pension if on the day after a 12 month period overseas ends, they are not in:

• Australia; or
• a foreign country, specified by the Minister for DSS.

Legislative Ref: subsections 23(1), 38(1), 147(2) and sections 1216, 1216A SSA, Parts 1.2, 1.3, 2.4 and 4.2.

Exception: A wife pension continues to be portable after 12 months, if the wife pensioner has been:

• an Australian resident for at least 10 years; or
• if a recommendation made by the Greek - Australian Welfare Workers' Association of NSW or the Commission of Enquiry investigating matters known as the Greek Conspiracy, resulted in a compensation payment to her or her partner.

Legislative Ref: subsection 1216B(2) SSA, Part 4.2.

Payment of pension overseas

Age pension paid by DVA, to a pensioner who is overseas, will only be paid into an account held in Australia.  Because most of these age pensioners already receive DP from DVA, age pension will be paid into the same account that their DP is paid into.  Prospective transferees who are residing overseas, should be advised of this fact.

Note: this is different to the DSS arrangement for pensioners who are overseas.  DSS are able to send a cheque to the person's overseas address.

NB: Pensioners should be advised that because of the exchange rate, payment by the DVA method may be disadvantageous.

Who will administer?

Age pensions paid to pensioners who are overseas are administered by the Tasmanian State Office.

Definition

A “scheduled international social security agreement” is an agreement between Australia and a foreign country, relating to reciprocity in social security matters.

Legislative Ref: subsection 1208(4) SSA, Part 4.1.

Affect on portability

Unless provided for in the agreement, age pension payable under a scheduled international social security agreement is not portable if the person is outside Australia.

Legislative Ref: section 1209 SSA, Part 4.1.

Affect on claim for pension

The provisions of an international agreement may permit a claim for age pension to be made by a person who is not:

• an Australian resident; or
• in Australia.

Legislative Ref: sections 51 and 1208 SSA, Parts 2.2 and 4.1.

Rate of pension under agreement

An international agreement provides that the pension payable under the agreement is to be calculated under Australia's social security laws.  The rate of pension is worked out in accordance with the International Agreement Portability Rate Calculator.

Legislative Ref: section 1210 and point 1210-A1 SSA, Part 4.1.

International agreement countries

DSS currently has scheduled international social security agreements with the countries shown in the table below.

Legislative Ref: section 1208 SSA, Schedules 2 to 12.

Republic of...

Kingdoms

Other

Austria

Great Britain and Northern Ireland

Canada

Cyprus

Netherlands

Ireland

Italy

Malta

Portugal

New Zealand

Spain

Introduction

As well as the bulk transfer of veteran age pensioners and their partners for the first DVA payday, eligible veterans and partners may transfer to DVA at any time they wish after this date, and new claimants may apply directly to DVA.

In this section

The topics relating to grants and transfers of age pension contained in this section, are shown in the table below.

Topic

See Page

Overview

32

Ongoing Transfers

33

New Claims

34

Pensioner Concession Cards and Treatment Entitlement

36

Transfer between departments

Following the initial bulk transfer of age pensioners from, veterans and their partners who receive age pension (and wife pension for some partners), may transfer between DSS and DVA at any time.

No data transfer facility

Unlike the automatic transfer of client data that occurred for the initial bulk transfer, there will be no automatic facility that enables transfer of pensioner records from the DSS system to the DVA system.

New claim required

Pensioners wishing to transfer from DSS, after the initial bulk transfer, must lodge a new claim with DVA, by completing a DSS “Application for Pension” form.  Similarly, DVA age pensioners who choose to transfer to DSS, must also lodge a new claim.

Note: Stocks of the “Application for Pension” form are held at DVA and should be lodged with DVA.

Processing DSS forms

Examiners should data collect information provided on the DSS forms on PIPS/PC, as they would a claim for SP or ISS.

More information: on changes to PIPS/PC are in Section H - “PIPS/PC”.

New claims processed by DVA

From the date approved by the DSS Secretary, DVA will process and grant age pension to eligible veterans who lodge a DSS “Application for Pension” form at a DVA office.

Note: where DVA grants age pension, there will be no SSR number.

New claim not required

A claim previously lodged for service pension and rejected due to lack of Qualifying Service, will be treated as a claim for age pension, if the claimant:

• is of age pension age; and
• completes an additional DSS “Pension Re-claim form

There will be no need to complete a full “Application for Pension” form, providing that the period of time between lodgement of SP claim and subsequent consideration of claim for age pension is less than 3 months.

Exception: in some circumstances the 3 month rule may be waived (e.g. where the department has taken more than 3 months to decided that the veteran does not qualify for SP).

More information: Guide to the Administration of the Social Security Act, Chapter 1, paras 1.1400 to 1.1408.

Forms to be provided by DSS

DSS will provide DVA with stocks of the following forms:

• Application for Pension (SA002), - including all relevant modules;
• Pension Re-claim (SA002A) - to be used in conjunction with a Claim for Service Pension;
• Income and Assets Review forms; and
• Departure Certificates

Note: SP modules and review forms may be used, where no DSS form is available.

Proof of identity

Since veterans who are eligible for age pension from DVA, already receive DP from DVA, proof of identity (PoI) for the veteran is not required when the veteran lodges a claim for age pension.  However, in the case of veterans who are partnered, regardless of whether the partner claims a pension or not, PoI is required from the partner.  The table below shows what is acceptable as standard DSS PoI.

More information: the Guide to the Administration of the Social Security Act Chapter 1, Part D.

One primary document, such as...

plus 2 secondary docs, such as...

certificate of Australian citizenship

open, provisional or learner's driver's license showing same address as on claim form

Advice mockups (continued)

One primary document, such as...

plus 2 secondary docs, such as...

current Australian passport or current overseas passport stamped for entry to Australia

change of name by deed poll more than 12 months old accompanied by birth certificate confirming name change

claimant's Australian birth certificate, extract, or birth certificate for claimant's child, issued more than 5 years ago

claimant's Australian birth certificate, extract, or birth certificate for claimant's child, issued 1 to 5 years ago

child or partner's Death Certificate issued by a government department more than 5 years ago and shows the claimant's name

child or partner's Death Certificate issued by a government department between 1 to 5 years ago and shows the claimant's name

Australian armed services discharge documents

divorce papers (i.e. decree absolute)

document of identity issued by Department of Foreign Affairs

firearm or shooter's license

legally drawn mortgage papers on a home or property

Australian marriage certificate issued by a government department

insurance renewal showing same address as on claim form

reference from an Aboriginal or Torres Strait Islander organisation that shows the referee's full details and the amount of time they have known the claimant

Accounts held with financial institutions: ATM or credit cards showing full name and signature, or account statements showing full name and address, or current passbooks showing full name

Motor vehicle registration papers, showing a cash register imprint, with same address as on claim form

taxation assessment notice

Overview of 1997 PCC procedures

The table below gives a quick overview of the procedures for 1997 PCC issues, as discussed in more detail, below the table.

IF a pensioner transfers from DSS...

THEN...

on 1 — st DVA payday

they should continue to use their 1997 DSS PCC

on 1 — st DVA payday and loses their 1997 DSS PCC

DVA will replace it

after 1 — st DVA payday

DVA will issue a 1997 PCC

PCC- pensioner transfers from  1st DVA payday

Where a pensioner transfers from DSS to commence payment with DVA from the 1 — st DVA age pension payday, they will generally not be issued with a DVA Pensioner Concession Card (PCC) for the remainder of 1997.  These transferees should continue to use their DSS issued PCC for the remainder of 1997.

Lost 1997 PCC

If a transferee, as described above, requires a replacement 1997 PCC, DVA will issue a replacement.  The pensioner should not be advised to approach DSS for a 1997 PCC replacement.

PCC- transfers after 1st DVA payday

Age pensioners who transfer to DVA after the bulk transfer, but before 1998, will be issued with a 1997 DVA PCC on transfer.  These pensioners should be advised to destroy their 1997 DSS PCC.

Alert concession providers

To avoid problems with concession providers, pensioners who transfer to DVA after the bulk transfer, or new claimants, should be advised to let their concession provider know of the change from the Social Security Reference Number (SSR) to the DVA file number.

Issue of 1998 PCC

DVA will issue PCCs to all DVA age pensioners commencing with the 1998 PCC issue.  DVA age pensioners will receive their 1998 DVA PCC in the same mailout exercise as service pensioners and income support supplement recipients.

Confirmation with providers

To ensure that DSS pensioners who transfer to DVA continue to be eligible for the benefits associated with the PCC, DSS will write to fringe benefit providers to confirm that certain clients have transferred to DVA.

Treatment entitlement

Treatment entitlements are not affected by this initiative.  Disability pensioners on age pension receive medical treatment at departmental expense as a result of their accepted disabilities, or in the case of severe accepted disabilities, a gold card and full treatment expenses are received.  Eligibility for this treatment is not related in any way to a person's eligibility for age pension.

Introduction

Assessment rules for age pensions generally mirror those contained in the VEA for service pensions.  For example, the maximum basic rate, income free areas (including additional income free areas for children) and asset value limits, are the same for age pension and service pension.

More information

For further information about eligibility and assessment rules, refer to the legislative and policy information contained in Section B - “OPAL”.

In this section

The major differences in assessment rules between age and service pensions are contained in this section, as shown in the table below.

Topic

See Page

Overview

38

Eligibility Differences

39

Income and Assets Differences

40

Comparable Foreign Payments

43

Compensation Affected Age Pension

46

Introduction

The main differences between eligibility for age and service pension are:

• pension age; and

• residency requirements.

Eligibility for age pension

A person is eligible for an age pension if the person:

• is at least pension age; and
• has 10 years qualifying Australian Residence; or
• has a qualifying residence exemption for an age pension.

Legislative Ref: section 43 SSA, Part 2.2.

Pension

age

The differences in pension age for DVA SP veterans and DSS age pensioners are shown in the table below.

Legislative Ref: subsections 23(5A) to (5D) SSA, Part 1.2 and section 5QA VEA.

Sex

Department

Age

Male

DSS/DVA

65

Male veterans

DVA

60

Female

DSS/DVA

61*

Female veterans

DVA

56*

*Note: Age equalisation rules are the same for both departments.

Qualifying Australian residence

A person has 10 years qualifying Australian residence if and only if:

• the person has, at any time, been an Australian resident for a continuous period of not less than 10 years; or
• the person has been an Australian resident during more than one period; and

• at least one of those periods is 5 years or more; and
• the aggregate of those periods exceeds 10 years.

Legislative Ref: subsection 7(5) SSA, Part 1.2.

Qualifying residence exemption

A person has a qualifying residence exemption for a particular social security payment, if and only if the person:

• resides in Australia; and
• is or was, a refugee.

Legislative Ref: subsection 7(6) SSA, Part 1.2.

Summary

The main differences between service and age pension income and assets assessments are summarised in the table below.  Further details on some topics are shown after this table.

Topic

SSA

VEA

$1 minimum variation

there is no minimum amount for a pension variation to occur

in certain circumstances pension is varied only where the variation is more than $1

Additional Income Free Area for non prescribed student children

ceases at 22 years

ceases at 25 years

Allocated annuities

treated like allocated pensions

treated like immediate annuities

Allocated pensions

asset assessed where purchased after 1/7/92

asset assessed where purchased after 20/8/96

Compensation provisions

affects age pensioners

does not affect age SPers

Curtilage

(policy) the 2 hectares is exempt, even if under more than one title, as long as land adjoins principal home

(policy) the 2 hectares is only exempt if on one title

DP

• is income for age pension
• is not income for RA

• is not income for service pension
• is income for RA

Extra allowable amount

treated differently if retirement village residence taken up before 13/6/89

treated differently if retirement village residence taken up before 12/6/89

Foreign pension

deduct $1 for $1 in some cases

deduct 50¢ in the $1

Loans

asset assessed if loan made after 27/10/86

asset assessed if loan made after 22/5/86

Loans to Family Trusts

(policy) loan to trust is deemed under income test and distribution from the trust is income

(policy) loan to trust is deemed under income test and DVA write to accountant to ascertain actual income earned by the loan and deduct it from the distribution and balance

Medical separation with non pensioner partner

apply standard rate child additional free area and married rate OIFA

apply married rate of both

Superannuation

exempt 5 year longer (i.e. until pension age)

exempt 5 years less (i.e. until pension age)

Allocated annuities

DSS assesses allocated annuities like allocated pensions.  They assess the current account balance.

DVA assesses allocated annuities like immediate annuities  The purchase price is assessed, rather than current account balance.

Cross Ref: Section H - “PIPS/PC”.

Allocated pensions

Allocated pensions are assessed under the assets test where the product was purchased after:

• 20 August 1996 (DVA); and
• 1 July 1992 (DSS).

DP income

• Disability pensions (including war widow/er's pensions) and allowances, are assessed as income for age pension income test purposes.

• Exception: PA paid due to eligibility for DP, is not assessed as income.

• DP is not assessed as income when calculating RA payable to age pensioners.

Extra Allowable Amount

The extra allowable amount differs depending on when a pensioner takes up residence in a retirement village. The distinction is made between retirement village residence taken up before and after:

• 12 June 1989 (DVA)
• 13 June 1989 (DSS)

Legislative Ref: sub sections 52N(1), 52N(2) VEA and 1148(1), 1148(2) SSA, Part 3.12.

Hostels

There is a difference in the treatment of hostels under the VEA and the SSA.

However, a recent Departmental Instruction (C53/96), directs DVA to follow the same administrative arrangements as DSS (i.e. test payment under both the nursing home and the retirement village rules and pay pension under the rules that provide the highest level of income support).

Loans

Both DVA and DSS treat the value of money on loan as an assessable asset.  This refers to loans made after:

• 22 May 1986 (DVA); and
• 27 October 1986 (DSS).

Legislative Ref: sections 52D VEA and 1122 SSA, Part 3.12.

Medical separation with non pensioner partner

DSS apply the standard rate child related additional free area ($24.00) to the ordinary income free area, when calculating separated due to medical illness cases, involving a non-pensioner partner.  The ordinary income free area, however, is the married rate.

Superannuation

funds

Superannuation funds are exempt under the income and assets tests until a pensioner reaches pension age.  Pension age for age pensioners is 5 years later than for veteran service pensioners.

Note: from 1 September 1997, the exemption age limit will be reduced to 55 years for all income support pensioners.  This will probably only be an issue for partners, of veteran age pensioners, who receive wife pension.

More information

More information: may be found in the Guide to the Assessment of the SSA, in OPAL.  For information on how to use OPAL, refer to Section B - “OPAL”.

Introduction

Age pensioners and their partners, are required to take reasonable action to obtain a comparable foreign payment (CFP).

Legislative Ref: sections 69 and 69A SSA, Part 2.2.

Definition

A CFP is:

• a payment type that is available from a foreign country; and
• is similar to a social security pension.

CFP countries

Although service pensioners are required to seek a CFP from any foreign country they may be entitled to claim from, age pensioners are only required to claim CFP from a CFP country.  Currently, there are 11 CFP countries.  Those countries that age pensioners are required to claim CFP from, are shown in the table below.

Note: Although New Zealand is a CFP country, the CFP legislation cannot be implemented in respect of pensions from New Zealand, due to reciprocal income support arrangements with Australia..

Republic of...

Kingdoms

Other

Austria

Great Britain and Northern Ireland

Canada

Cyprus

Netherlands

Ireland

Italy

Malta

Portugal

Spain

Income assessment

Under the VEA, income from CFP is assessed as ordinary income, where every dollar of CFP received, reduces pension by fifty cents.  Under the SSA, income received from CFP is assessed depending on whether the age pension received by the person is 'autonomous' or an 'agreement' pension.  The table below shows the differences between the two types.

Autonomous pension

Agreement pension

means: age pension is paid because the residency criteria are met

means: age pension has been granted due to an international agreement, as residency requirements are not met

assessment: every $1 of CFP received, reduces pension by 50¢

assessment: varies depending on the CFP country (see below)

Agreement pension assessment: types

There are three different ways of assessing income from CFP paid to pensioners who receive 'agreement' age pensions from DSS.  The table below shows which countries are assessed in which way.

Assessment type 1

Assessment type 2

Assessment type 3

UK & Northern Ireland

Portugal

Spain

Ireland

Malta

Netherlands

Cyprus

Italy

Canada

Austria

Assessment type 1

Countries assessed under assessment type 1 have their age pension reduced by a dollar, for every dollar of CFP received.

Assessment type 2

CFP from Italy is assessed as shown in the table below.

Legislative Ref: Schedule 3, section 1208 SSA.

Step

Action

1

Identify any component of the CFP that is welfare or income support, subject to means testing.  Disregard that amount under the income test.  The result is the net amount.

2

The net amount is assessed in 3 different ways, as shown below:

Step

Calculate the pension rate...

(i)

as if the net is assessed as ordinary income

(ii)

using a proportioning rate:

• net × {no. of months resident in Australia}/300 = income reduction amount; then
• max. basic rate - income reduction amt = provisional rate payable; then
• provisional rate × {no. of months resident in Australia}/300= PENSION RATE PAYABLE

(iii)

as if the net was an assessment type 1 CFP.

3

Compare the lower of (i) and (ii) from Step 2 above, to (iii).

4

Choose the higher rate.  This is the rate payable.

Assessment type 3

Canadian and Austrian CFPs are assessed like Italian CFP above, except that Step 2(i) and Step 3 are omitted.  Thus, the higher rate is the rate that is payable.

Arrears assessment

Unlike service pension under the VEA, arrears of CFP are recovered from age pension payments, to adjust for CFP grants that include arrears.

More information

For TAS SO staff: In the unlikely event that a case arises where you have to calculate one of these complex CFPs, contact the DSS International Operations Branch in Hobart for assistance.

Background

From 20 March 1997, amendments were made to the compensation direct deduction, recovery and preclusion provisions in the SSA.  These provisions generally deal with compensation payments received in respect of:

• lost earnings; or
• lost capacity to earn.

Legislative Ref: sections 1163 to 1182 SSA, Part 3.14.

Summary of compensation changes

A summary, of the three main policy objectives achieved through the SSA compensation amendments, is shown in the table below.

Extend the...

Change the...

Apply the...

compensation provisions to age pension (including age blind pension)

divisor used to calculate lump sum preclusion periods

lump sum preclusion period to the compensation recipient only (not to their partner)

When is age pension affected?

Age pension is a compensation affected pension, if:

• compensation is received on or after 20 March 1997 (including periodic payments of compensation that commence before 20 March); and
• the provisional commencement day for age pension is on or after 20 March 1997.

Legislative Ref: sub section 46(1) SSA, Part 2.2 (for age pension provisional commencement day).

Affect of the changes

Depending on whether compensation is received periodically, or as a lump sum, age pension will be affected as shown in the table below.

Periodic compensation received

Lump Sum compensation received

• direct deduction, for compensation received after 20 March 1997, regardless of when compensation commenced.

• preclusion period; and
• past payments of social security income support recovered from lump sum.

Wife pension not affected

Wife pension is not a compensation affected pension.  Therefore, the compensation rules extended to age pensioners, do not apply to the partner of an age pensioner, if she is a wife pensioner.

Exemptions

Some age pensioners will be exempt from the compensation provisions if, immediately prior to the commencement of age pension, they were receiving a non compensation affected payment.  Examples of non compensation affected payments are:

• widows class 'B' pension;
• disability support pension (previously invalid pension) granted prior to 1 May 1987;
• carer pension granted prior to 1 January 1993;
• sole parent pension granted prior to 20 March 1992; or
• a social security benefit, other than sickness benefit or rehabilitation allowance granted prior to 1 May 1987.

Rate change may occur

Where:

• a veteran on DSS income support (e.g. disability support pension), becomes an age pensioner; and
• the partner's payment is dependent on the veteran's eligibility for age pension (i.e. the partner is a wife pensioner),

a situation may arise where a rate change may occur if one or both of the couple receive periodic compensation payments.

This would happen because the compensation assessment would change from being assessed as a 50% direct deduction from each of their pensions, to a direct deduction from the age pension only.  The age pension would decrease and the wife pension would increase.  If the age pension is reduced to nil, the wife would lose eligibility to wife pension, because her eligibility is based on her partner receiving an age pension.

Legislative Ref: subsection 147(1) SSA, Part 2.4.

Lump sum divisor

The divisor used to calculate preclusion periods will change:

from- the all person average weekly earnings (currently $572.10 a week);

to- the amount above which no pension is payable to a single person under the income test ($402.20 a week).

This amount is increased twice a year in March and September, in line with the Consumer Price Index.

Disability pension reduced

Where DP paid under Part II or IV VEA is reduced, due to a similar compensation payment paid by a state or foreign country, only the actual amount of Australian DP is assessed as income for age pension purposes.  If this dual compensation is received in the form of a periodical payment (as opposed to a lump sum), that amount is also regarded as income under the SSA.

Introduction

This section deals with the inter-related issues of overpayments, retrospective DP increases, and appeals.

Samples

The sample documents in this section are all contained on the standard letters templates.  The formatting may vary slightly and the samples shown are for information only.

In this section

The following table shows the topics dealt with in this section.

Topic

See Page

Overview

48

Overpayments

49

Charges on Outstanding Debts

52

Retrospective DP Increases

54

Appeals

56

Sample Original Decision Maker's Advice- Decision Affirmed

61

Referral to Authorised Review Officer

62

Sample Authorised Review Officer's Advice- Decision Affirmed

63

SSAT Cover Sheet

64

Introduction

With regard to overpayments of age pension, DVA will:

• investigate;
• calculate;
• raise; and
• recover.

DVA/DSS differences

Debts under the SSA differ from those under the VEA, mainly with regard to:

• rights of review - i.e. rights of review exist under the SSA against all decisions, including recovery.

More information: refer to “Appeals” in this Section.

• the application of charges - an administrative charge under the VEA, penalty interest under the SSA.

More information: refer to “Charges on Outstanding Debts” in this Section.

Legislative reference

Chapter 5 of the SSA deals with Overpayments and Debt Recovery.  Amounts recoverable under the SSA (Part 5.2), include specific types of debt such as debts arising from:

• automatic rate reductions because of partner starting to receive pension, benefit etcetera, section 1223B SSA, Part 5.2.
• recipient's contravention of Act, section 1224 SSA, Part 5.2.

Recording age pension debts on CMS

A new “Overpayment” attribute, classification number 945, has been created on CMS, for recording age pension debts.

Cross Ref: Section H - “Claims Management System”.

Recording age pension debts on WinPORS

Age pension debts should also be recorded on WinPORS under a new classification - AGE.  This will ensure that these debts are easily streamed off from other debts being recovered by DVA (e.g. service pension debts, debts being recovered on behalf of another Department, etcetera).

Raising new overpayments

DVA will raise new overpayments from the later of the date of:

• commencement of overpayment; or
• grant of age pension; or
• transfer to DVA.

Overpayment- period pre and post transfer

Where a new overpayment appears to have an effective date prior to transfer to DVA, action will be taken as shown in the table below.

The portion of the O/P from the...

to and including...

is calculated by...

commencement date of overpayment

day before 1 — st DVA payday

DSS

date of 1 — st DVA payday

day before 1 — st correct payment

DVA

Overpayment- period pre and post transfer: DVA action

Once the period of overpayment that DVA will calculate has been established, DVA will:

• raise it's portion of the overpayment;
• advise the debtor of the the amount of debt and the possibility that an overpayment may also exist at DSS; and
• forward any relevant information to the DSS Regional Office that the veteran transferred from.

Recovery of existing debts

Recovery of existing age pension debts should initially be continued at the rate agreed to by DSS.  Review of the recovery rate may be undertaken when and if it is deemed to be appropriate (e.g. if included in regular reviews of outstanding debts).

Recovery methods

The various methods for recovery available under the VEA, are also available under the SSA.  These include:

• withholdings at the formulated rate;
• instalments;
• garnishee action;
• discounting.

This means that recovery methods currently applied to service pension debts may also be used when recovering DSS debts, providing these concur with the SSA and DSS guidelines.

Penalty Interest

There is no administrative charge under the SSA.  DSS applies a flat per annum penalty interest (currently 20% per annum) on certain types of debts, where:

• the debtor is no longer in payment, and
• there are no formal arrangements in place for repayment; and
• recovery by other means cannot be achieved (e.g. garnishee action).

Application

of penalty interest unlikely

Because the majority of age pension debtors will be in receipt of both the age and disability pension, there should be very few situations where a penalty interest would apply.  The only possible scenario may be where:

• a debtor ceases to receive an income support pension; and
• their DP is less than 10% of the general rate.

This means that there are no payments that the department can limit and garnishee action cannot be taken.

Calculation and review

of penalty

interest

The table below shows the steps involved in calculating and reviewing penalty interest.  As the penalty interest is calculated on the balance outstanding, it should be reviewed on a regular basis (at least quarterly).

More information: to aid in the calculation process an excel program is being developed.  It will be provided to the relevant areas.

Step

Action

1

Calculate the flat rate, penalty interest, on the balance outstanding

2

Record the penalty interest on WinPORS

3

Advise the debtor of the penalty interest

4

Review penalty interest on a regular basis

5

Advise the debtor of the new balance

Standard letters

A new set of overpayment standard letters specific to age pension overpayment, has been developed. These are located under the new template “Overpay Age”.

Introduction

Relevant information in relation to charges on outstanding debts, under both the VEA and SSA, are shown in the tables below.

VEA

Ref

SSA

Ref

Admin Charge (AC) introduced 01/09/87

205(5)

Penalty Interest (PI) introduced 01/07/94

1229

Part 5.2

Application

Application

In respect of ALL debts accruing after 01/09/87, that are:

• over 3 months old (i.e. not discharged within 3 months of notification of debt);
• due to a false statement, misrepresentation, or failure or omission to notify; and
• in excess of $200.

ONLY in respect of debtors who:

• are not in payment;
• do not have arrangements in place for repayment;
• do not agree to a reasonable repayment arrangement based on financial circumstances; or
• break an agreed arrangement without sufficient reason.

1229A

Interest Rate

Interest Rate

1229B

A flat fee of $15 plus 10% of any amount outstanding at the end of the 3 months (up to a maximum of $515)

A flat 20% per annum interest rate calculated daily on the balance outstanding on a set date each month.

Cessation

Cessation

Unlike PI which accrues, AC is a one off charge.

PI will cease to accrue from:

• date withholding instruction is set up on DMIS (where debtor commences to receive a DSS payment);
• date debtor resumes payments under a prior arrangement;
• upon date of death of debtor.

Advice mockups (continued)

VEA

Ref

SSA

Ref

Special Features

Special Features

• no appeal rights against imposition of AC or amount
• if an appeal against the overpayment is successful, any amount of AC already recovered is refunded
• applicable in deceased cases where the estate is liable for the debt

• imposition of PI is appealable
• not to be applied where it is possible to recover the debt by garnishee or during a garnishee period
• not applicable where the debtor is deceased

1237B

Part 5.4

Introduction

DP affects the payment of age pension under the SSA, and rent assistance under the VEA.  When DP is granted or increased retrospectively, any amount of income support (age pension or RA) that would not have been paid because of a grant or increase of DP, must be recovered.  This is normally achieved by adjusting any lump sum arrears of DP that are due to the veteran.

DSS clearances

Currently, when a retrospective grant or increase of DP is put into payment, any lump sum arrears owing to the veteran are withheld, pending a written clearance from DSS, about any 'overpayment' of age pension, resulting from the grant or increase.  When the clearance is returned, any 'adjustment amount' is deducted from the lump sum arrears and the balance is released to the veteran.

Retro increase of DP- pre and post transfer

Where a retrospective increase of DP is granted to an age pensioner after transfer to DVA, but the date of effect of increase is prior to the transfer, the adjustment must be calculated as shown in the table below.

The portion of DP increase from the...

to and including the...

is calculated by...

date of effect of increase

day before 1 — st DVA payday

DSS

date of 1 — st DVA payday

day before DP increase

DVA

Procedures for calculating adjustment amount

The following table outlines the steps to be taken when calculating the adjustment amount.

Step

Action

1

Put DP increase into payment for next available payday

Note: PIPS will auto adjust age pension to take DP into account

2

Withhold arrears

3

Send a clearance to DSS

Advice mockups (continued)

Step

Action

4

Calculate the old and new rates of age pension for the post transfer period using the What If? screen on PIPS/PC to calculate the old and new rates of pension where:

• old = rate of age pension actually paid
• new = rate of age pension that would have been paid if DP had been taken into account.

Remember: take into account any variation to age pension since transfer (e.g. statutory increase, global updates etcetera)

More information: Section H - “What If? - User Guide”.

5

Copy old and new rates to the arrears screen which will calculate the adjustment amount

6

Withhold the balance, pending DSS clearance

7

Add the DSS adjustment amount to the amount calculated at Step 5, when the DSS clearance is received

8

Deduct total adjustment amounts from arrears held

9

Release the balance to the veteran

10

Send an advice to the veteran outlining arrears withheld

Note: new standard letter available.

Retrospective increase of DP- effective date post transfer

The following table outlines the steps to be taken when calculating the adjustment amount for a retrospective increase of DP with an effective date post transfer to DVA.

Step

Action

1

Put DP increase into payment for next available payday

Note: PIPS will auto adjust age pension to take DP into account

2

Calculate the old and new rates of age pension for the post transfer period, using the Simulated Assessment screen on PIPS/PC

3

Copy old and new rates to the arrears screen which will calculate the adjustment amount

4

Authorise case.  System will automatically deduct the adjustment amount from arrears of DP and release excess to veteran.

Overview

Rights of review in respect of income support pensions differ between DVA and DSS with regard to:

• what is appealable;
• the levels of appeal available; and
• time limits on lodging internal appeals.

What is appealable

The table below outlines the differences between the VEA and SSA in respect of rights of review.

Under the VEA there is...

Ref

Under the SSA...

Ref

A right of review to claimants or service pensioners who are dissatisfied with a specific decision of the Commission.

There is no right of review against other administrative actions such as:

• the automatic reduction or termination of a pension;
• decisions pertaining to the recovery of overpayments, including:

• application of withholdings;
• rate of recovery;
• imposition of late or penalty charges; and
• decisions not to waive, write-off or defer recovery

57

56

56A

56B

56BA

Any decision is appealable including

• automatic" terminations or reductions
• decisions pertaining to the recovery of overpayments, including:

• application of withholdings;
• rate of recovery;
• imposition of late or penalty charges; and
• decisions not to waive, write-off or defer recovery

Note: the SSA specifically states that there is a decision of the Secretary where the Act operates automatically to terminate or reduce the rate of pension, benefit or allowance.

1239 &

1240

Part 6.1

1240

Levels of appeal

The table below compares the appeal process under the VEA and the SSA.

Under the VEA

Ref

Under the SSA

Ref

The primary decision maker (PDM) is precluded from reviewing own decision.

57A(3)

Internal review: first level - ODM

Original decision must be reviewed by the original decision maker (ODM).

1239

Part 6.1

Internal review : first level - SPRO

Primary decisions are reviewed by Service Pensions Review Officer (SPRO).

57B

Internal review: second level - ARO

If dissatisfied with the ODM's decision and review, may seek a review by the Authorised Review Officer (ARO).

1240

If dissatisfied with SPRO decision, appeal lodged at AAT

External review: first level - SSAT

A person dissatisfied with the AROs decision may appeal to the Social Security Appeals Tribunal (SSAT) for a review of that decision

1247

Part 6.2

External review: first level - AAT

A person dissatisfied with the SPRO's decision may appeal to the Administrative Appeals Tribunal (AAT) for a review of that decision

175

External review: second level  - AAT

A person dissatisfied with the SSAT's  decision may appeal to the AAT for a review of that decision

1283

Part 6.4

Time limits on lodging appeals

The table below compares time limits for lodging appeals by service pensioners and age pensioners.

Under the VEA

Ref

Under the SSA

Ref

A request for a review of a primary decision by the SPRO must be lodged within 3 months of notification of the primary decision.

57A

No time limit on lodgement of a request for a review, however, if the new decision results in arrears payable, these can only be paid from the date of the original decision if the application for review was lodged within 3 months of notification of primary decision.

54(2) &(3); 80(2) &(3)

Part 2.2

Where the application is lodged outside the 3 month period, arrears are payable from the date of application.

If application for review by ODM was lodged within time, no further time restrictions apply.

Procedures for processing age pension appeals

To process an appeal lodged by an age pensioner, follow the steps in the table below.

Step

Action

1

Register appeal on CMS and pass to original decision maker (ODM) for review.

• classification: CM.CI
• class number: 974

2

ODM reviews own decision:

If original decision overturned: go to Step 3

If original decision upheld: go to Step 4

Advice mockups (continued)

Step

Action

3

Appeal finalised on CMS; client advised; case re-assessed.

NO FURTHER ACTION REQUIRED

4

ODM advises client (by phone; in person or by letter) and passes appeal to Authorised Review Officer (ARO).

Note: the DSS policy is that the appeal must be passed to the Authorised Review Officer within 4 days of the pensioner requesting the review.

5

ARO reviews original decision:

If original decision overturned: go to Step 3

If original decision upheld: go to Step 6

6

ARO advises client of decision and the next level of appeal.

Sample: “Authorised Review Officer's Advice- Decision Affirmed” in this Section.

Appeal finalised on CMS.  NO FURTHER ACTION REQUIRED

Appeal lodged at SSAT

The action in the following table should be taken immediately on receipt of an SSAT request for departmental statement or file papers.

Step

Action

1

Register SSAT appeal on CMS:

• classification: CM.CI
• class number: 215

2

Complete cover sheet and print 2 copies

Sample: “SSAT Cover Sheet” in this Section.

3

• Place photocopy of ARO letter plus 1 copy of the cover sheet loosely on file. This represents the Departmental Statement.
• Second copy of cover sheet is placed on file, plus a copy provided to the appellant.

4

Forward these, together with the file, to the SSAT in your state (refer address block at end of this topic).

Remember: the above must be provided to the SSAT within 28 days of the appeal.

NO FURTHER ACTION BY DVA REQUIRED (i.e. there is no formal representation by DVA at the SSAT).

SSAT Appeal finalised

When the SSAT advises the client and DVA of the outcome of the appeal, follow the table below, and finalise the appeal on CMS.

IF departmental decision...

THEN...

overturned

refer to processing area for reassessment

upheld

no further action required

SSAT offices

The table below lists the SSAT offices and their addresses.

City

Level

Address

Adelaide

12

45 Grenfell Street 5000

Brisbane

5

157 Ann Street 4000

Canberra

2

4 Mort Street 2601

Darwin

1

80 Mitchell Street 0800

Hobart

1

54 Victoria Street 7000

Melbourne

14

624 Bourke Street 3000

Perth

9

216 St Georges Terrace 6000

Sydney

11

157 Liverpool Street 2000

Standard letters

A new set of standard letters specific to age pension appeals have been developed.  These are located under the new template “Appeals - Age”.  Samples follow this topic.

DVA Pension No:

SSR No:

DVA Appeal No:

Pensioner's Name:

Contact arrangements with pensioner eg phone no

Decision Under Review: (brief description of decision eg retrospective reduction)

Date Of Decision:

Full explanation given to pensioner by decision maker:

Phone:  YES  /   NO

On :

Interview:   YES  /   NO

On:

Appeal lodged on:

New information provided:

Your reconsideration

of the decision

Basis of your decision:

SSA references:

Guide References:

Name of original decision maker:

Date:

Dear

Senior Member

Social Security Appeals Tribunal

{address}

{address}

{address}

DVA APPEAL REFERENCE NO:

{reference no}

SSAT APPEAL REFERENCE NO:

{reference no}

Appellant:

{name of appellant}

{address of appellant}

{address of appellant}

{address of appellant}

Date of birth:

{insert date of birth of appellant}

Number of dependent children:

{?}

DVA office:

{DVA office client in payment}

Payment type:

{e.g. age pension}

Decision under appeal:

{brief description of decision e.g. retrospective reduction of pension}

Date of decision:

{e.g. 12 July 1997}

Date appeal lodged:

Grounds for appeal:

Introduction

Ongoing client communication should ensure that:

• the veteran community is informed about the availability of age pension; and
• existing age pensioners have access to information that affects their DVA age pension.

In this section

The following table shows the topics dealt with in this section.

Topic

See Page

Overview

65

Advices

66

Information Materials

67

Introduction

To accommodate the need to advise age pensioners about matters that affect their pension, provision has been made to include them in departmental advices exercises and other written communications that occur from time to time.

Integrated advices

Amendments have been made to the Correspondence Rules and Paragraphs Specifications - Integrated Advices System (CRPS-IAS) to cater for all three income support pension types that DVA now administers.  This means that the appropriate age pensioners and their partners will receive advices automatically when required, resulting from daily, fortnightly and global processing and from bulk exercises such as Amending Legislation (A/L) and quarterly runs.

Standard letters

Amendments have been made to the Standard Letters used by Income Support, so that age pensioners may also receive standard letters as appropriate.  As a general rule, the letters have been made generic to all three DVA income support pension types, where appropriate.

CCPS

Amendments have been made to the Compensation Claims Processing System (CCPS) to ensure that disability pensioners who receive a new grant or review of DP, are aware that they may receive age pension from DVA.  The paragraph will only be provided to Australian veterans who:

• receive DP of  at least 10% of the General Rate; or
• have Accepted Disabilities, where no DP is payable (because their degree of incapacity is less than 10% ) but PA is received; or
• have Accepted Disabilities for treatment under sub section 85(2) VEA and also receive PA; and
• are age pension age; and
• do not receive any DVA income support pension, and do not have operational service.

Introduction

Promotional and publicity materials, providing useful information about DVA age pension, are available to the veteran community.  These are described below.

Posters

To assist with the implementation of this initiative, a poster using the popular World War I, “Coo-ee- Won't YOU come?” image and slogan was designed to promote the availability of age pension from DVA.  These posters should continue to be displayed in DVA offices.  Ex-service organisations are also encouraged to continue with the display of these posters, to alert eligible veterans and their partners to the option of receiving age pension from DVA.

More posters:  Until exhausted, stocks are available from Fiona Thompson in QLD SO, on telephone (07) 3223 8766.

Information sheets

Information sheets developed to provide information about the DVA age pension option, to the veteran community during implementation, may also continue to be disseminated as required.

Note 1:  the income and asset rates will require updating from time to time, in line with the CPI.

Note 2:  old sheets that refer to the 1800 number, should not be issued.

Introduction

Changes to the department's computer systems were necessary to enable age pensions processing.

In this section

This section deals with changes to DVA's main processing systems and introduces a new “What If” screen, that was developed as part of the implementation of this project.

Topic

See Page

Overview

68

PIPS/PC

69

Methods of Assessment

72

Assessment Module

73

Payment Master File

75

Claims Management System

76

Card Data Base

78

Mainframe Programs and Ad Hoc Information System

79

Death Processing System

80

Manual Rates

81

What If? User Guide

82

Selecting an Actual Case

84

Selecting a Hypothetical Case

86

Other What If? Functions

87

More information

Queries relating to information contained in this section should be directed to the Systems Support Officer in your state.  If the query is not able to be resolved at this level, please refer to:

• Graham Del Casale on (08) 8290 0407; or
• Josephine Saliba on (02) 9213 7163.

Adult details

Three new pension type/classes have been added.  These are:

• DSS Age Pension - DP Veteran
• DSS Age Pension - Partner
• DSS Wife Pension

The table below shows you when to use the new type/classes.

IF the pensioner...

THEN use the pension type...

receives DP; and

is paid under DP file number

DSS Age Pension - DP Veteran

and partner are both DP veterans

DSS Age Pension - DP Veteran

is the partner of a DP veteran and is at least pension age

DSS Age Pension - Partner

is the partner of a DP veteran and is under pension age

Note: only for existing wife pensioners, as no new grants of wife pension

DSS Wife Pension

Pension type indicators

When wife pension is selected, an indicator, WP, will be set on the database.  The purpose of this indicator is to provide statistical information to DSS.  Every where else in PIPS/PC, DSS Age Pension or AP will be displayed.

Screen Dump

Allocated pensions

The PIPS/PC screen for Allocated Pensions will assess the asset value from 01/07/92 for DSS age and wife pensioners, instead of the 20/08/96 rules for SP/ISS clients

Allocated annuities

Allocated annuities should be recorded on the Allocated Annuity screen.  An asset toggle will advise examiners to use the existing automatic asset value assessment if the annuity is a pre 02/07/92 investment.  If it is a post 01/07/92 investment, the system will deactivate the automatic asset assessment.

Calculate Pension

Calculate Pension has been changed, to display the new pension type of DSS Age Pension, as shown below.

Simulated assessment

Simulated Assessment has been changed to display the new pension type of DSS Age Pension.

Eligibility dates

A new field, AP Grant Date, has been added, as shown below

.

Reject claim

Reject claim will cater for:

• DSS New Claim Age - Class 195; and
• DSS Transfer In - Class 190.

Print authority

Print Authority has been changed to display all new DSS Age Pension fields.

Authorise

Authorise has been changed to display the new pension type of DSS Age Pension.

Client portrait

Client Portrait has been changed to display all new DSS Age Pension fields.

New MoAs

New Methods of Assessment have been created for DSS Age and Wife pensioners, as shown in the table below.

MOA

DSS Age Pensioner...

Partner...

32

Single

n/a

33

n/a

single (widowed or separated)

34

Married

eligible as DP veteran or dependent

35

Married

receiving pension from DSS

36

Married

not eligible for or receiving pension

37

Married

receiving payment under other file number or paid interstate

38

Married, illness separated

eligible as dependent

39

Married, illness separated

receiving pension from DSS

40

Married, illness separated

not eligible for or receiving pension

41

Married, illness separated

receiving payment under other file number or paid interstate

Introduction

Changes have been made to the Assessment Module to cater for DSS Age Pensioners.  The most significant of which, are shown below.

Pharmaceutical allowance

The table below shows the main changes made to PA.

PA paid in respect of Veterans' DP

PA paid in respect of DSS Age Pension

partnered couple: PA paid to veteran only

for widows and separated partners

illness separated couple: PA paid to both members at standard rate

DP income

DP is counted as income for DSS age pensioners.

Child payments

Child related payments will continue to be paid by DSS.  However, the additional income free area for children (AIFA), will apply at DVA.

Exception: DVA will pay child related RAA, which means the appropriate indicator must be set on the child details screen.

Child related rent assistance

If a pensioner is eligible for increased rent assistance as a result of children, DSS will pay the entire rent assistance payment.

Income & assets at which age pension ceases

DSS age pensioners have different points at which pension ceases, due to the fact that PA is generally paid in respect of the Veteran's DP.  The first table below shows the DSS age pension income test cut out points, the second table shows the assets test cut out points, as at 3 July 1997.

Relationship

Basic Pension $

Maximum RA $

not a member of a couple

795.60

945.20

partnered-combined

1336.40

1477.60

illness separated- each

794.40

944.00

Advice mockups (continued)

Relationship

Basic Pension $

Maximum RA $

widowed/separated partner

806.40

956.00

Relationship

Low limit $

High limit $

not a member of a couple

243,500

333,500

partnered - combined

374,000

464,000

Lump sum advance

Changes have been made to Lump Sum Advance to cater for DSS age pensioners.  A new limitation code of 70 7180 has been created for age pensioners.  A new edit has been added.  DSS age pensioners have a minimum LSA of $250.00 per client.

Cross Ref: Section C - “Lump Sum Advance”.

PMF changes

The following pension codes have been added to the Payment Master File (PMF).

Description

Pay Category

Pension Code

DSS Age pension

20

2402 <999.00

DSS Age RAA married partners

29

6410 15.00

DSS Age RAA veteran single

29

6411 17.50

DSS Age AA married with children

29

6412 <99.00

DSS Age RAA widow/er, separated partner

29

6414 17.50

DSS Age RAA single with children

29

6415 <101.50

DSS Lump sum advance

70

7180

DSS Age pension overpayment

70

7181

DSS Age pension suspension

71

7280

Taxation deduction

80

8002 ≤ maximum std rate (currently 347.80)

More information

The above new pension codes will appear in the Pension Code book of 3 July 1997.

New classifications

New CMS classifications are shown in the table below.

Description

Available on...

Class number

DSS New Claim Age

CM.CP

195

SSAT Appeal

CM.CI

215

DSS Age Appeal

CM.CI

974

New attributes

New CMS attributes are shown in the table below.

From...

To...

Class Number

Not DSS pension age

DSS new claim age

372

Dependant claim

DSS new claim age

374

DSS Age Pension

DSS Transfer in

190

DSS Age Pension

Transfer in SP/ISS/AGE

860

DSS Age Pension

Dept init action

870

DSS Age Pension

Pensioner initiated review

875

DSS Age Pension

Child review

880

DSS Age Pension

Student child review

885

DSS Age Pension

SP/ISS/AP data change

890

DSS Age Pension

Death SP/ISS/AP

895

DSS Age Pension

Transfer out payment

900

DSS Age Pension

Nil pension variation

905

DSS Age Pension

Manual authority

910

DSS Age Pension

Dept review assets

915

DSS Age Pension

Dept review income

920

DSS Age Pension

Fortnightly manuals

925

DSS Age Pension

Super processing

930

DSS Age Pension

Amending legislation

935

DSS Age Pension

Overpayment

945

DSS Age Pension

Special review

965

DSS Age Pension

Tas overseas review

995

DSS Age Pension

DSS transfer out

990

Attribute set to Y

For all of the above CMS classifications, the DSS Age Pension attribute will be set to “Y” automatically, for all DSS age pension and wife pension cases processed through PIPS/PC.

Exception: Overpayment

CMS reports

No changes will be required for CMS reports.  Once changes have been made to the CMS networks, reports will automatically detect new classifications and attributes.

Half instalment

To invoke the half instalment rules, the CMS classification, DSS Transfer In, must be used.

EC.SM

DSS age pensioners who transfer automatically, will retain the PCC issued by DSS for the remainder of 1997.  Whereas, clients processed through PIPS/PC will be issued with a DVA PCC.

EC.PC

A new field, “DSS”, has been added to this screen. A “Y” next to the DSS field, as shown below, indicates that the client is a DSS Age or Wife pensioner.

Introduction

The following mainframe programs have been altered, as well as the ad hoc information system.

Trial

Changes to the Trial screen (PP.TR) are shown in the table below.

Pension

Elig type

Class type

Age

D

AP

Wife

D

WP

Taxation processing

A new type of “AGP” will be displayed for DSS age and wife pension.

GIS

DSS age pension details will be displayed on the General Information System (GIS), when appropriate.

AIS

Changes have been made to the Ad Hoc Information System (AIS) to allow the selection of DSS age or wife pension.

PA rules

Pharmaceutical Allowance should only be included in the calculation of Bereavement Payment if it is paid in respect of DSS age pension, not DP.  The table below shows the PA method of assessment (MOA) that should be used when processing a manual case on the Death Processing System (DPS).

MOA

Is paid in regard of...

32

DP

33, 38, 39, 40, 41

DSS Age Pension

34, 35, 36, 37

DP to veteran only

Taxation calculation

DSS age pension is taxable income.  The non taxable component includes:

• bereavement payment lump sum;
• payments of age pension released after death; and
• the difference between the old and new rates payable, multiplied by the number of paydays remaining in the bereavement period.

In other words, the non taxable component is basically equivalent to 7 times the fortnightly amount that the deceased person received prior to death.

Manual rates cases

Some scenarios arising from the payment of age pension will be processed as manual rates cases, since a new MOA will not be created for them.  The scenarios are shown in the table below.

Veteran paid...

Partner

at DSS

DSS Age pension- partner

at DSS

DSS Wife pension

other file number

DSS Age pension- partner

other file number

DSS Wife pension

interstate

DSS Age pension- partner

interstate

DSS Wife pension

Warning message

A warning message will appear at Adult Details as well as at Calculate Pension, to ensure that the user puts the case on the Manual Rates screen.  The warning message is “Manual rates is required for this assessment”.

Partner in gaol

Where one member of a couple is in gaol, the partner who is not in gaol is paid at the standard rate (the gaoled partner is not paid at all).  These cases will be recorded on manual rates, however there will be no warning message advising the user to do this.

Introduction

A new screen is being introduced with the implementation of this project, called “What If?”.  This screen will provide the ability to calculate a rate of pension for hypothetical cases and cases that do not have a worksheet.

What is What If?

What If? is a new facility available from PIPS/PC that will replace the existing Mainframe Trial Assessment facility.  It offers simplicity of use and a wider range of features than Trial.  It allows most users to perform their PIPS/PC processing without having to access the mainframe.

Note: Trial is still available.  It is not being removed.

Starting What If?

Access What If? from the PIPS/PC toolbar, or the drop down menus, as shown below.

After starting

After you start What If?, you will be presented with the What If? Main form.  What If? uses the message line at the bottom of the form to display help and warning messages automatically, as shown below.

Reason: this has been found to be less distracting to experienced users than message boxes.

Selecting a model case

What If? allows you to use either an Actual or Hypothetical model case.  Actual cases are those existing on the data base, while Hypothetical cases are not.

Selecting an Actual case

The table below, shows the steps involved in selecting an Actual case.

Step

Action

1

Select Actual from the Model Case dropdown menu at the top of the main form.  You will see this form.

2

Type the number you would like to use, into the File Number edit box

3

Press TAB or ENTER- the available cases will be entered into the Assessment combo box and the form will be redisplayed, as shown below.

4

After selecting the Assessment you require from the combo box, press ENTER.  The details are retrieved from the mainframe and the pension and allowances calculated for the current details.  This will give you a base case with which to compare the results of any changes you make.

Advice mockups (continued)

Step

Action

5

When the calculation is complete, the results will be displayed on the main form, as shown below.

What is a combo box?

A 'combo box' is a box with an arrow at the right hand side.  When you click on it, a box filled with options appears, for the user to select.  See below.

Selecting a Hypothetical case

The table below, shows the steps involved in selecting a Hypothetical case.

Step

Action

1

Select Hypothetical from the Model Case menu on the main form, and this form will be displayed.

2

Use the combo boxes to select the Pension Type and Status (Single, Married, Illness Separated, Partnered) of the case you would like to use (there are 70 predefined model cases to choose from)

3

Use the check boxes to select a home owner or children

(non home owners by default are Private Renters paying $99 per week and children by default are one Under 13 and one Under 16).

4

After selecting your model case, press OK

5

Modify the case details, as usual.

Initial values

Hypothetical cases do not have initial values displayed in the “Current” columns on the main form.

Selecting functions

In the screen dump below, a drop box is shown under Details, that gives access to the functions.

Changing case details

The table below, shows the steps involved in changing Case Details.

Step

Action

1

Select Eligibility from the Details menu, to display the Eligibility details form.

2

Change the eligibility details of each desired client, from this form.

Note: You must press Update, for each client, to update your changes before exiting this screen.

Advice mockups (continued)

Step

Action

3

Select Residential Situation from the main form's Details menu.

4

Select the residential situation details for each client from this form.

Note: for a married couple, updating one partner's details will also update the other's.

Exception: unless the couple are illness separated.

5

If the couple are illness separated, you must update each client in turn.

Check: the message line if you are unsure who has been updated, after pressing the Update button.

6

Select Child Details from the main form's details menu.  This form allows you to change details relating to the client's children.  If the client has no children, and you intend to add them, the form will initially look like this:

Advice mockups (continued)

Step

Action

7

Type the number of children in any of the enable fields (to enable the disabled fields)

8

Press TAB or ENTER.  The form will then redisplay with all fields enabled, as shown below.  If the total number of children listed on the form reaches zero, the form will revert to it's “no children” state, with all of the disabled fields set to zero.

9

Select DP item from the main form's Details menu.  This form allows you to change the client's DP details.  If there is only one client in the assessment, the other client's details section will be disabled.

Calculating a pension

You can calculate the client's pension at any time by pressing the Calculate button.  The results will be displayed on the main form in the columns marked “Assessed”.  For example, this allows you to change the client's Income/Asset details, Residential Situation and DP, without recalculating the pension between each one.

Printing a report

Printing a report is as simple as pressing the Print button from the main form.  The current details recorded for all clients in the assessment will be sent to your default PIPS/PC printer.

Note: Child Details and DP reports are only printed if details are recorded for the assessment.

Income Asset form

The total DP value for the selected effective date is shown here.  The DP is only included in the Income Total for DSS AGE and ISS cases.