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2.5.1 Effective date for reductions

Section 56 VEA and section 56B VEA provide for the automatic rate reduction of income support payment where a loss of payability has occurred.

2.5.1.1Where a person has been served with a notice under section 54 VEA and a notifiable event has occurred which renders amounts of pension or allowance not payable, and the person complies with their section 54 VEA notification obligations, section 56 VEA provides that the pension to be reduced from the day after the end of the notification period.

Where a person has not complied with their section 54 VEA notification obligations, section 56B VEA provides that the pension be reduced from the day of the event.

2.5.1.2The 'date of event' for all events occurring within the bereavement period is taken to be the day after the bereavement period ends (day 99).

For events occurring in the bereavement period, the effective date for negative PIRs notified within the notification period or during the bereavement period is the day after the end of the notification period – i.e. day 114 (day 128 if the pensioner lives overseas or receives remote area allowance).

2.5.1.3For events occurring in the bereavement period, the effective date for negative PIRs notified outside the notification period is the date of event (day 99).