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Transitional rules
Pensioners and ISS recipients who were in receipt of pension on or before 19 September 2009 are eligible to be assessed under transitional rules, if:
- transitional rules will result in a higher rate of pension, and
- they have never been assessed under the new rules.
The requirement that the pensioner has never been assessed under the new rules, does not arise where the pensioner's entitlement is re-determined from a date prior to 20 September 2009. Where new pension information is received and is effective prior to this date, the pensioner's right to receive the transitional rate is considered anew.
Once a pensioner or ISS recipient has been assessed under the new rules they cannot revert to transitional rules. There is one exception to this, to cover respite care changes to pensioners who return to live as a couple again.
Recipients assessed under transitional rules:
- have their payment calculated using the transitional maximum basic rate,
- have a taper rate of 40 cents in the dollar for the income test, and
- can still receive the additional income free area for children.
According to Schedule 6-B1 of the VEA a MBR is the person's maximum rate as ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).
One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their income increases above a certain threshold known as the income free area (IFA).
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