Purpose

The purpose of this Departmental Instruction (DI) amendment is to advise you of updated policy in relation to the treatment of overpayments arising in respect of widows who automatically transferred from the then Department of Social Security (DSS) to the Department of Veterans' Affairs (DVA) in 1995.

Background

The policy section has been advised that as these cases are reviewed, there are differing practices around Australia regarding the investigation and the raising of overpayments on these cases.  These differing practices are occurring as some staff are following the DIs issued in 1995 and some are not.

Policy change

Please note that the policy in the following paragraphs regarding full data collection is no longer relevant and should be disregarded when undertaking reviews of these clients.

• B29/95 - BUDGET INITIATIVE : PAY STANDARD (SINGLE) RATE TO WIDOWED AND SEPARATED PARTNERS OF FORMER VETERAN SERVICE PENSIONERS

Para 73 of B29/95 states -“Until a full data collection occurs for a client, no overpayments are to be raised unless the overpayment eventuated as a result of fraud. The overpayment can only be raised from the payday where full data collection took effect. As the total amount of income and assets are recorded for each client, variations in specific income or asset amounts can not be updated until a full data collection.”

• B40/95 - BUDGET 1994/95 INITIATIVE : INTRODUCTION OF THE INCOME SUPPORT SUPPLEMENT (ISS) PAYABLE TO WAR WIDOWS AND WIDOWERS

Para 158 of B40/95 states -“It should be noted that until such time as a full data collection has been undertaken on a case, overpayments of ISS should not be raised on cases that were automatically transferred across from Social Security using limited income and asset data. Any overpayment raised can only be backdated to the payday following full reassessment of the case based on a full data collection. The only exception to this rule is where the pension has been obtained through fraudulent activity.”

Any overpayments arising from reviews conducted on these clients, should be investigated and raised according to normal overpayment practice.

Rationale

When this group of clients were transferred from DSS to DVA in 1995 a letter was issued to each client.  This letter advised clients that they would continue to have the same sort of obligations they had whilst they were receiving a Social Security pension, but that their obligations were now to Veterans' Affairs.  They were advised that the amount of service pension or income support supplement they received would depend on the amount of income and assets they had.  They were also advised to tell the Department if their income or assets went above the income and asset test limits.  These limits were provided.

These clients received a copy of You and Your Pension in 1998, which included a full list of obligations.  Less than maximum rate, as well as maximum rate service pensioners and income support supplement recipients, have also received full obligations at least once again since 1998.

They have also been sent a letter every year since 1998, which reminded them of their obligations and where to find them, and the income and assets test limits applicable to their payment.

They may have received letters between their original letter in March 1995 and the issue of You and Your Pension in 1998, but this information cannot be retrieved from the system.

Instruction

The policy contained in DI B29/95 paragraph 73 and DI B40/95 paragraph 158 is no longer relevant and should not be referred to when undertaking reviews of clients who automatically transferred from DSS to DVA in 1995.

These clients have been advised of their obligations on multiple occasions in the ten years since they transferred to DVA.  For this reason the advice of the  Policy section is that when these cases are reviewed, any overpayments arising as a result should be recovered.  This advice should apply to all SOs dealing with these cases.

Contact Officer

If you would like further clarification of any part of this Departmental Instruction amendment, please contact Chris Rake of Income Support Policy on extension 14773 or at e-mail address christine.rake@dva.gov.au.