DATE OF ISSUE: 4 SEPTEMBER 1997
SEPTEMBER 1997 ADVICE MAILOUT
Purpose of instruction |
This Departmental Instruction is to provide information about processing information for the September quarterly advices. |
BOB HAY
BRANCH HEAD
INCOME SUPPORT
Background
Introduction |
The department's quarterly advices facility has been designed to enhance communication between the Department and the veteran community. In general, quarterly advices are sent in January, March, June and September of each year. Advices are sent to income support pensioners. The size of the mailout is dependent on the issues (eg. Budget changes, pension indexation, etc) current at the time. |
A/L Events |
The September Quarterly Advice mailout will incorporate the following events for pay-day 25 September 1997:
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Processing sequence |
An advice is to be produced for:
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Obligations |
Obligations are to be suppressed for all advices produced. Reference will be made to previous obligations issued to clients. |
Income and Asset listings |
Full Income - Asset listings are to be produced only for clients who have either shares or managed investments listed in their assessment. |
Production |
The reassessment processing run and advice production will be conducted on the weekend of 5/7 September 1997. No fortnightly run for deprived assets and Profit Fort will be done prior to the weekend quarterly advice run and will therefore not impact on the transactions generated for the quarterly advices run. The major reassessment program ("BAL") will be run to reassess cases affected by any of the events above. Detailed ADP processing requirements will be sent separately to State System Support Officers. |
Rules for processing
Advices |
System support and advice contact officers in each State Office have been provided with copies of the advice mock up and variations paragraphs. |
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Payment processing |
The payment processing is scheduled to run from Friday evening 5 September until Sunday evening 7 September 1997. A processing timetable appears later in this instruction. |
Pensioners for whom an advice will be generated
Affected clients |
A quarterly advice is to be produced for all less than maximum rate service pensioners and all less than maximum rate income support supplement clients(less than ceiling rate of $120.10). The advice may include other relevant paragraphs, such as treatment and/or fringe benefits eligibility. |
Client numbers |
The estimated number of advices for this run is approximately 75,000 |
Advice printing |
Two sites for quarterly advice printing will be used due to the size of this run. Advice letters for NSW and VIC will be printed at Leigh Mardon (Melbourne). Advice letters for the rest (QLD, SA, WA and TAS) will be printed at Lane Bros (Adelaide). All data will be supplied to the printers on cartridge on Monday 8 September 1997. |
Special register |
Special Register and overseas advices will be supplied to the mailing houses on separate cartridges and forwarded to the relevant State Offices. |
Components of the mailout
Quarterly advice processing |
As mentioned earlier, a quarterly advice will be produced for all less than maximum rate service pensioners and less than maximum rate income support supplement pensioners. The range of paragraphs, the circumstances under which these will be applied and the paragraph wording have been supplied to State Office contact officers. Sample advice letters are contained in this DI. |
Advices - general
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ADP Processing |
Detailed information regarding ADP Processing will be issued to State Systems Support Officers in a separate memorandum. The Systems Support Officers will be issuing a local processing timetable and should be consulted on any matter concerning ADP Processing. |
Timetable |
Key time frames and events for the September mailout are summarised below. The first processing run will begin on the evening of Friday 5 September 1997. |
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Date
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Event
|
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Friday 5 Sept 1997 |
Cut off for pay period 58 (11 Sept 97), 12 noon State Office time. |
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Friday 5 Sept 1997 (pm) |
Day 1 processing for pay period 59 (25 Sept 97). Daily advices from this processing to be dispatched immediately. |
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Friday 5 Sept (pm) |
BAL re-assessment run. |
Sat. 6 Sept |
Quarterly Advices processing runs. |
Mon. 8 Sept until cut-off for pay 59 |
Examiner action on manual schedules. |
Advices - daily
Holding of daily advices |
Cases processed in advance for day 1 of pay period 59 (25 September 1997) should have the daily advice dispatched prior to the quarterly advice being sent. Daily payment advices produced after the processing run on 5-7 September 1997 for pay period 59 (25 September 1997), should be held by State Offices until confirmation is received from the quarterly advices project officer in National Office to release such advices. This will ensure that pensioners who have pension variations processed for payday 25 September 1997 will receive their daily advice after the quarterly advice rather than in advance of it. |
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Manual cases |
To minimise the number of daily advices to be held whilst quarterly advices are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 25 September 1997. General pensions processing should continue unabated but should be submitted for the subsequent pay day. |
Dispatch of quarterly advices
Advice lodgement |
As requested via State Office feedback, the quarterly advices will be held at the mailing houses for lodgement with Australia Post at the end of the processing week. The only exception to this will be Tasmanian advices, as Tasmania have requested that their advices be sent when ready. As advices are lodged for each State, the project officer will advise the appropriate State contact officer. |
Reprint of selected advices |
Any requests for reprints of individual quarterly advices should be referred to State Office System Support Officers. |
Contacts |
There will be one National Office contact for this quarterly advice run. Any queries regarding advice wording, AL data cartridges, mailing house printing and advice lodgement should be referred to: Elizabeth Joyner (02) 6289 6078 E-mail C-C-BD-11 |
Quarterly advices - pensioner feedback
Feedback from State Offices |
Any concerns regarding advices produced as part of this run should be directed immediately to the NO contact officer, Elizabeth Joyner. At the end of this AL we will be collating all State feedback to avoid problems recurring. Any problems noted should be reported to the contact officer with the nature of the query and the file number of the client. Please ensure that problems are reported as early as possible. |
Advice Mockups
Advice mockups |
Attached are mockups of the advice letters. Mock up 1: Single veteran, less than maximum rate SP, no change to rate of pension, TA paid, no MIs/shares. Mock up 2: Pensioner couple, less than maximum rate SP, receiving SDA, SDA amounts indexed, decrease to rate of pension, TA paid, with MIs/shares. Mock up 3:...Single veteran, reduced to nil rate, still in payment of DP and PA, has MIs/shares. Mock up 4:...Single veteran, total reduced to nil, no remaining payment, has MIs/shares. |
Advice variables |
Please note, in the following samples:
[this represents a fix to a problem highlighted by State Offices in previous feedback]
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Mock up 1
SINGLE VETERAN, LESS THAN MAX RATE SP,
TA PAID, NO MIs/SHARES, NO CHANGE TO RATE OF PENSION
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Commonwealth Department of Veterans' Affairs |
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STATE OFFICE |
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AMP Place |
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10 Eagle Street |
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Brisbane QLD |
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Postal Address: |
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SEYMOUR PLANET |
GPO Box 651 Brisbane QLD 4001 |
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43 VENEZIA AVENUE |
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ROMA QLD 4455 |
Telephone: |
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Metropolitan residents: (07) 3223 8333 |
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Country residents: 1800 113304 |
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Interstate residents: 1800 777634 |
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Facsimile: (07) 3223 8585 |
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8 September 1997 |
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_ |
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YOUR FILE NUMBER IS QX111111 |
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Dear Mr Planet
I am writing to you about your service pension payment from Veterans' Affairs.
Payment Details
The fortnightly rate of pension you will receive from 25 September 1997 is shown below.
Payments to SEYMOUR PLANET
TOTAL FORTNIGHTLY PAYMENT |
$XXX.xx |
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This is made up of :- |
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- Service pension |
XXX.xx |
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- Rent assistance |
XX.xx |
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- Pharmaceutical allowance |
X.xx |
|||
No Change to Rate of Pension
The income and/or asset values of your financial assets have been reassessed. However, this has not varied the amount of service pension paid to you.
Consumer Price Index
A negative Consumer Price Index (CPI) has been reported for the period December 1996 to June 1997. As a result, there will be no indexation of service pension rates.
Deemed Interest Rate Change - Financial Assets
With effect from 25 September 1997, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 5% for amounts over $30,400 ($50,600 per couple), will be used to work out income recorded for your financial assets.
This has resulted in a change to the income amounts used to work out your rate of service pension.
What is Deemed Income?
For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed. The value of all your financial assets are added together, and deemed interest rates are applied to calculate the income.
At present, deemed income is calculated as follows, regardless of the actual interest rates, on the total of all your financial assets:
$0 to $30,400 — at 3%
$30,400+at 5%
If your investments are earning more than the 3% and 5% deeming rates, this additional income will not affect the rate of your service pension.
Total Financial Assets
FINANCIAL ASSETS VALUE |
INTEREST RATE |
INCOME PER FORTNIGHT |
$30,400 |
3% |
$35.08 |
$15,400 |
5% |
$29.62 |
$45,800 |
$64.70 |
Telephone Allowance
Telephone allowance will be paid on 25 September 1997, together with your new fortnightly rate of pension shown above. There has been an increase in the general rates of telephone allowance. The new rates are:
- World War 1 - $42.50
- General Rate (single pensioners, war widow(er)s and recipients of certain rates of disability pension) - $15.60
- Married Rate - $7.80 each for pensioner couples.
Your Obligations
Your obligations have been explained to you in previous advices; these obligations still apply.
Changes You Have Already Told Us About
If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent. When that change has been finalised, we will send you another letter providing details of your new pension assessment.
Your Right of Review
If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office. If you decide to apply you must do so within 3 months of being advised of this variation. A request for review must be in writing and set out your reasons for seeking this review.
If you have any questions about any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.
Yours sincerely
Gary Collins
Deputy Commissioner as
Delegate of the Secretary
Mock up 2
PENSIONER COUPLE, LESS THAN MAX RATE SP,
RECEIVING SDA, SDA AMOUNTS INDEXED,
PENSION RATE DECREASED, TA PAID,
HAS MIs/SHARES, FULL I/A LISTING ATTACHED
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Commonwealth Department of Veterans' Affairs |
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STATE OFFICE |
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AMP Place |
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10 Eagle Street |
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Brisbane QLD |
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Postal Address: |
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GREGORY PRINCE |
GPO Box 651 Brisbane QLD 4001 |
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DEBORAH PRINCE |
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VILLA 43/21 MONTE CARLO WAY |
Telephone: |
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MONAK NSW 2738 |
Metropolitan residents: (07) 3223 8333 |
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Country residents: 1800 113304 |
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Interstate residents: 1800 777634 |
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Facsimile: (07) 3223 8585 |
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8 September 1997 |
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_ |
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YOUR FILE NUMBER IS QX222222 |
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Dear Mr and Mrs Prince
I am writing to you about your service pension payment from Veterans' Affairs.
Payment Details
The fortnightly rate of pension you will receive from 25 September 1997 is shown below.
Payments to GREGORY PRINCE and DEBORAH PRINCE
TOTAL FORTNIGHTLY PAYMENT |
$XXX.xx |
$XXX.xx |
||
This is made up of :- |
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- Service pension |
XXX.xx |
XXX.xx |
||
- Specific disablement allowance |
XX.xx |
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- Pharmaceutical allowance |
X.xx |
X.xx |
||
Change to Rate of Pension
You currently receive service pension under the assets test.
Changes in the income and/or asset values of your financial assets have been recorded. This has resulted in a decrease in the amount of service pension paid to you.
Consumer Price Index
A negative Consumer Price Index (CPI) has been reported for the period December 1996 to June 1997. As a result, there will be no indexation of service pension rates.
Allowances which did increase as a result of movements in the CPI are Recreational Transport Allowance, Attendant Allowance and Specific Disablement Allowance (Items 7-15)
Reassessment of Financial Assets
The asset values of listed shares and unit based managed investment products have been reassessed. Details of your investments are listed in this advice.
Deemed Interest Rate Change
Effective 25 September 1997, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 5% for amounts over $30,400 ($50,600 per couple), will be used to work out income recorded for your financial assets.
This has resulted in a change to the income amounts used to work out your rate of service pension.
Medical Treatment for GREGORY PRINCE
Your eligibility for the treatment benefits available with the Gold Repatriation Health Card is dependent on income and asset limits. As your income and assets are equal to or above these limits, you are no longer eligible for treatment benefits from the date of this variation. Please destroy your old card as any treatment expenses will no longer be covered by the Department.
Telephone Allowance
Telephone allowance will be paid on 25 September 1997, together with your new fortnightly rate of pension shown above. The rates of telephone allowance are:
- World War 1 - $42.50
- General Rate (single income support pensioners, war widow(er)s and recipients of certain rates of disability pension) - $15.60
- Married Rate - $7.80 each for service pensioner couples.
Your Obligations
Your obligations have been explained to you in previous advices; these obligations still apply.
Changes You Have Already Told Us About
If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent. When that change has been finalised, we will send you another letter providing details of your new pension assessment.
Your Right of Review
If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office. If you decide to apply you must do so within 3 months of being advised of this variation. A request for review must be in writing and set out your reasons for seeking this review.
If you have any questions about any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.
Yours sincerely
Gary Collins
Deputy Commissioner as
Delegate of the Secretary
INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT
(Information current as at 8 September 1997)
You are both receiving service pension at less than the maximum rate payable.
The amount that you are both paid depends on your combined income and assets but does not include the home in which you live. The pension is calculated under two separate tests: an income and an assets test. The test that pays the lower rate of pension is the one that applies.
You are currently paid under the assets test. The total of your fortnightly assessed income is $324.92. The total of all your assets (excluding any deductible assets) is $219702.65. Details of how your pension has been assessed are shown below.
Savings and Cheque Accounts
Description |
Account Number |
Asset Amount |
Commonwealth Bank |
111202 |
$800.00 |
National Australia Bank |
222111 |
$1,000.00 |
IMPORTANT We understand that balances in savings type accounts may fluctuate regularly.
Term Deposits and Other Accounts
Description |
Account Number |
Asset Amount |
QLD Treasury |
123123123 |
$10,000.00 |
Money Loaned
Description |
Type |
Asset Amount |
AGC |
DEBENTURE |
$30,000.00 |
SALE ADV BANK SHARES |
N/A |
$19,400.00 |
Listed Securities and Unlisted Public Securities
Description |
No. of Shares |
Asset Amount |
NATIONAL AUST. BANK - 50C ORDINARY FULLY PAID |
2,395 |
$8,550.15 |
COMMONWEALTH BANK - $2.00 ORDINARY FULLY PAID |
2,600 |
$42,328.00 |
COLES MYER LIMITED - 50C ORDINARY FULLY PAID |
275 |
$687.50 |
NATIONAL AUSTRALIA BANK $1.00 ORDINARY FULLY PAID |
2,100 |
$39,574.50 |
ST GEORGE BANK LIMITED - $1.00 ORDINARY FULLY PAID |
4,375 |
$36,662.50 |
Note: Income from financial assets is deemed.
Total Financial Assets
FINANCIAL ASSETS VALUE |
DEEMED INTEREST RATE |
DEEMED INCOME PER FORTNIGHT |
$50,600.00 |
3% |
$58.38 |
$138,602.65 |
5% |
$266.54 |
$189,202.65 |
$324.92 |
What is Deemed Income?
For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed. The value of all your financial assets are added together, and deemed interest rates are applied to calculate the income.
At present, deemed income is calculated as follows, regardless of the actual interest rates, on the total of all your financial assets:
$0 to $50,600 — at 3%
$50,600+at 5%
If your investments are earning more than the 3% and 5% deeming rates, this additional income will not affect the rate of your service pension.
Other Income and Assets
The following income and assets are those which do not have extended deeming applied to them but are still used to determine your rate of pension.
Home Assets
The asset and/or income values shown below are the amounts used for pension purposes.
- Market value of household contents - $7,000.00
Miscellaneous Assets
- Car - 1996 Ford Laser with a net market value of $18,000.00
- Car - 1986 Calais Holden with a net market value of $5,500
Mock up 3
SINGLE VETERAN, REDUCED TO NIL RATE SP,
IN PAYMENT OF DP & PA, HAS MIs/SHARES
I/A LISTING WILL BE PRODUCED
AN EXAMPLE IS NOT ATTACHED (REFER PREVIOUS MOCK UP)
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Commonwealth Department of Veterans' Affairs |
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STATE OFFICE |
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AMP Place |
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10 Eagle Street |
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Brisbane QLD |
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Postal Address: |
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BORIS LONDON |
GPO Box 651 Brisbane QLD 4001 |
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28 PHANTOM PLACE |
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WEST END QLD 4101 |
Telephone: |
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Metropolitan residents: (07) 3223 8333 |
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Country residents: 1800 113304 |
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Interstate residents: 1800 777634 |
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Facsimile: (07) 3223 8585 |
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8 September 1997 |
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_ |
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YOUR FILE NUMBER IS QX333333 |
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Dear Mr London
I am writing to you about your service pension payment from Veterans' Affairs.
Payment Details
Your service pension has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension. The fortnightly rate of pension you will receive from 25 September 1997 is shown below.
Payments to BORIS LONDON
TOTAL FORTNIGHTLY PAYMENT |
$XXX.xx |
|||
This is made up of :- |
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- Disability pension |
XXX.xx |
|||
- Pharmaceutical allowance |
X.xx |
|||
Consumer Price Index
A negative Consumer Price Index (CPI) has been reported for the period December 1996 to June 1997. As a result, there will be no indexation of service pension rates.
Reassessment of Financial Assets
The asset values of listed shares and unit based managed investment products have been reassessed. Details of your investments are listed in this advice.
Deemed Interest Rate Change
Effective 25 September 1997, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 5% for amounts over $30,400 ($50,600 per couple), will be used to work out income recorded for your financial assets.
This has resulted in a change to the income amounts used to work out your rate of service pension.
Fringe Benefits
As you are no longer eligible for a service pension, you no longer qualify for fringe benefits. Please destroy your existing Pensioner Concession Card.
Your Right to Re-Apply
You may re-apply to have your service pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.
Changes You Have Already Told Us About
If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent. When that change has been finalised, we will send you another letter providing details of your new pension assessment.
Your Right of Review
If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office. If you decide to apply you must do so within 3 months of being advised of this variation. A request for review must be in writing and set out your reasons for seeking this review.
If you have any questions about any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.
Yours sincerely
Gary Collins
Deputy Commissioner as
Delegate of the Secretary
Mock up 4
PENSIONER COUPLE, REDUCED RATE SP - REDUCTION TO NIL
INDEXATION, HAS MIs/SHARES, NO OTHER PAYMENT
I/A LISTING WILL BE PRODUCED
EXAMPLE HAS NOT BEEN ATTACHED (REFER MOCKUP 2)
|
Commonwealth Department of Veterans' Affairs |
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STATE OFFICE |
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AMP Place |
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10 Eagle Street |
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Brisbane QLD |
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Postal Address: |
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DANIEL MORGAN |
GPO Box 651 Brisbane QLD 4001 |
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ELIZABETH MORGAN |
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27 PARIS CLOSE |
Telephone: |
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LYONS ACT 2606 |
Metropolitan residents: (07) 3223 8333 |
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Country residents: 1800 113304 |
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Interstate residents: 1800 777634 |
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Facsimile: (07) 3223 8585 |
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25 September 1997 |
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_ |
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YOUR FILE NUMBER IS QX444444 |
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Dear Mr and Mrs Morgan
I am writing to you about your service pension payment from Veterans' Affairs.
Payment Details
Your service pension has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension. This change to your fortnightly rate of pension applies from 25 September 1997.
Reassessment of Financial Assets
The asset values of listed shares and unit-based managed investment products have been reassessed. Details of your investments are listed in the attachment.
Fringe Benefits
As you are no longer eligible for a service pension, you no longer qualify for fringe benefits. Please destroy your existing Pensioner Concession Card.
Your Right to Re-Apply
You may re-apply to have your service pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.
Changes You Have Already Told Us About
If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent. When that change has been finalised, we will send you another letter providing details of your new pension assessment.
Your Right of Review
If you do not agree with this variation, you may apply to have it reviewed by a Service Pension Review Officer at this office. If you decide to apply you must do so within 3 months of being advised of this variation. A request for review must be in writing and set out your reasons for seeking this review.
If you have any questions about any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.
Yours sincerely
Gary Collins
Deputy Commissioner as
Delegate of the Secretary