C35/1998 INCLUDING YOU AND YOUR PENSION WITH GRANTS OF SERVICE PENSION AND INCOME SUPPORT SUPPLEMENT

Purpose of Instruction

The purpose of this instruction is to set out the new procedures for providing newly granted service pensioners and income support supplement pensioners with the booklet You and Your Pension.

It also sets out the changes to letters from the Integrated Advices system for new grants of service pension and income support supplement.

Introduction

You and Your Pension was distributed in June 1998 with the annual mailout of group certificates and Medicare levy exemption certificates.  One copy of the booklet was provided to each income support pensioner household recorded on the Client Database (CDB).  Copies have also been sent to pensioners in nursing homes and hostels and to trustees on behalf of pensioners in their care.

Objective of the booklet

The objective of the booklet was to:

• improve pensioners understanding of their benefits, rights and obligations
• remove the worry pensioners have about fulfilling their obligations
• reduce the workload through pensioners being better informed of the events they do and do not need to tell DVA about
• provide comprehensive information about the full range of DVA benefits and services available to income support pensioners.

The issue of the booklet with a covering letter is also a notification of obligations under section 54 of the VEA.

Background

Prior to the release of the booklet, an On Line advised that 264,825 income support pensioner households were recorded on the CDB over the weekend 13–14 June 1998.  All of these households have now received a copy of You and Your Pension.

It also informed that the new grant letter was not yet ready and that State Offices would be notified when a Departmental Instruction was prepared.  Some states may have kept a record of newly granted service pensions and income support supplements.

These persons now need to receive a new grant letter with a paragraph which refers to the attached booklet as their notification of obligations for it to be effective as a section 54 of the VEA notification.  Only if this letter is sent, is the booklet a section 54 notification—otherwise it will be an information product only.

Changes to new grant letters

There are two changes to the new grant letters.  The changes are:

• paragraphs which refer newly granted pensioners to their obligations which are now included in You and Your Pension
• financial obligations paragraphs with the inclusion of their prescribed income and asset rates.

Extract from new grant letter referring to the booklet - up to September 98 Amending Legislation

Events You Need to Tell Us About

Details of your obligation to notify us within 21 days of changes to your circumstances are included in the enclosed booklet You and Your Pension.  The booklet also includes information about:

• additional allowances and benefits
• the income and assets test, and how different types of income and assets are counted for pension purposes
• your rights as a [service pensioner/income support supplement pensioner]
• other services available from Veterans' Affairs.

The booklet is a notice under section 54 of the Veterans' Entitlements Act – it sets out your obligations (the things you need to tell us about) so that your pension is paid at the right rate.  It also sets out the things you do not need to tell us about.  These obligations are contained in chapter 11.

Extract from new grant letter referring to the booklet - post September 98 Amending Legislation

Events You Need to Tell Us About

Details of your obligations to notify us within 21 days of changes to your circumstances are included in chapter 11 of the enclosed booklet You and Your Pension.

The booklet also includes information about:

• additional allowances and benefits
• the income and assets test, and how different types of income and assets are counted for pension purposes
• your rights as a [service pensioner/income support supplement pensioner]
• other services available from Veterans' Affairs.

The booklet is a notice under section 54 of the Veterans' Entitlements Act – it sets out your obligations (the things you need to tell us about) so that your pension is paid at the right rate.  It also sets out the things you do not need to tell us about.  These obligations are contained in chapter 11.

Extract from new grant letter referring to prescribed income and assets amount

1.  [maximum rate service pensioner/income support supplement pensioners]

You have been granted the maximum rate of [service pension/income support supplement].  You will continue to receive the maximum rate as long as your income is less than [prescribed income amount $xxx.xx] per fortnight and your combined assets are less than [prescribed asset amount $xxx.xx]. You need to tell us within 21 days if your combined income or assets increase above these amounts.

2. [reduced rate service pensioners/income support supplement pensioners]

You have been granted [service pension/income support supplement] at less than the maximum rate because your [assets are/income is] above the current threshold.  This means your pension is calculated using the [assets test/income test].The [assets thresholds are/income threshold is] set out on the General Information Sheet at the end of this letter.

2a  [assets tested—pensioner couple]

You need to tell us within 21 days if you gain or dispose of any assets or the total amount of your combined existing assets increase above [prescribed asset amount $xxx.xx], or your combined income increases above [prescribed income amount $xxx.xx] per fortnight.  If your assets are reduced, any increase in pension can only be made from the first pension payday after the details are received by us.

Extract from new grant letter referring to prescribed income and assets amount (continued)

2b  [assets tested—pensioner single]

You need to tell us within 21 days if you gain or dispose of any assets or the total amount of your existing assets varies, or your income increases above [prescribed income amount $xxx.xx] per fortnight.  If your assets are reduced, any increase in pension can only be made from the first pension payday after the details are received by us.

2c  [income tested—pensioner couple]

You need to tell us within 21 days if you gain or dispose of any income or the total amount of your combined existing income varies, or your combined assets increase above [prescribed asset amount $xxx.xx] per fortnight.  If your income is reduced, any increase in pension can only be made from the first pension payday after the details are received by us.

2d  [income tested—pensioner single]

You need to tell us within 21 days if you gain or dispose of any income or the total amount of your existing income varies, or your assets increase above [prescribed asset amount $xxx.xx] per fortnight.  If your income is reduced, any increase in pension can only be made from the first pension payday after the details are received by us.

Effective Date

The revised new grant letter is now available.

Who is affected?

All new grants of service pension and income support supplement following the weekend of 13–14 June 1998.

Age pensioners and any new grants of age pension are not affected.

Procedures for requesting letters for new grants of service pension and income support supplement

When granting a new service pension or income support supplement, it will be necessary to suppress printing the full listing of obligations for new pensioners.  The pensioners obligations are now included in You and Your Pension.

The following table sets out the new procedures for requesting letters for new grants of service pension and income support supplement:

Step

Action

1

As part of the granting a new pension procedure go to the “advice” screen in PIPS–PC

2

Change the default selection of “full” under the obligations section to “suppress”.  This will:

• insert the two paragraphs mentioned above
• suppress the pensioners full listing of obligations from being printed with the letter in the Integrated Advices system.

3

After the letter is printed and sent to your State Office for distribution, include a copy of the booklet with the letter package to be mailed to the pensioner.

Additional procedures for blind pensioners

For newly granted service pensioners and income support supplement pensioners who are blind, it will be necessary to send an audio cassette version of You and Your Pension as well as the booklet.

So, if “blind” is selected in the “adult details” screen of PIPS–PC, then an audio cassette should also be included with their letter package.

Where blind pensioners are members of a couple, one booklet and one cassette is required.

New Package

After the new grant letters have been generated by the Integrated Advices system and distributed to the State Offices, the person(s) responsible for collating the information which goes out with new grant letters will need to include a booklet in the package.

For example, in the Queensland State Office, the new grant letter goes in a package which also includes a PCC, a Concessions book and pension pay day calendar.  The package will now include one booklet per household.

Blind pensioners will also need to receive one cassette version of the booklet with their package as well as the booklet.

Contact Officer

The Income Support Branch contact officers for the exercise will be:

John Stevens:Telephone: (07) 3223 8568

Brett Greensill:Telephone: (07) 3223 8764