C06/1999 MARCH 1999 QUARTERLY LETTERS MAILOUT

DATE OF ISSUE:  1 March 1999

MARCH 1999 QUARTERLY LETTERS MAILOUT

Purpose of instruction

This Departmental Instruction is to provide information about processing arrangements for the March quarterly advice letter mailout.

BOB HAY

BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

Every quarter the Department varies pensions and allowances in accordance with provisions contained in the VEA (amending legislation or AL).  Letters are sent to income support pensioners affected by the changes implemented as part of the AL.

AL Events – 25 March 1999

The March quarterly advice letter mailout will incorporate the following events for payday 25 March 1999: Pension rates will be increased in line with CPI increase; Global refresh of managed investment and share data; Deeming rate change from 5% to 4.5% Payment of telephone allowance to those eligible.

CPI/MTAWE Increase

The CPI for the December quarter resulted in an increase to certain pension rates, allowance and thresholds.  The figure for Male Total Average Weekly Earnings will not be released until 4 March 1999.  This figure may also affect the rates of Service Pension, War/Defence Widow/ers and Age Pension.  An amending DI will be issued at this time if MTAWE has an impact on the AL.

Advice Letters

Letters to be produced

A letter is to be produced for: Every less than maximum rate recipient of income support (SP/ISS/AP); Anyone who goes to maximum rate as a result of this reassessment; Anyone who changes from maximum rate to less than maximum rate; and Anyone who has saved rent assistance (including max raters)

Income & Asset Listing

Full Income/Asset listings are to be produced only for clients who have either shares or managed investments listed in their assessment.

No Obligations

Obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients.

General Information Sheet

Each letter sent as part of this mailout will have a General Information Sheet (GIS) attached.  The GIS details the majority of allowance and threshold rates.  Pensioners will also be advised of their new rates of allowance payment in the payment box of these letters.

Single & Joint Letters

All service pensioners and income support supplement recipients will receive a joint letter, provided the pensioner addresses are identical.  All age pensioners will receive a single letter.

Production of Advice Letters

Production

The reassessment and data extraction will run from Friday evening 5 March to Sunday 7 March 1999.  Detailed ADP processing requirements will be distributed separately by the Systems Delivery Section.

Timetable

The major events and timeframes for the March mailout are summarised below:

Date	Event
Friday 5 March 1999	Cut-off for pay period 19 (11 March 1999), 5.00pm All States.
Friday 5 March 1999	Day 1 processing for pay period 20 (25 March 1999).  Daily letters from this processing to be dispatched immediately.
Saturday 6 March 1999	BAL re-assessment run.
Saturday 6 March 1999	Quarterly Letters processing runs.
Monday 9 March until cut-off for pay 72	Examiner action on manual schedules

Client Numbers

The following is a summary of client numbers in each State.  The numbers are approximates only:

STATE	NO. OF LETTERS
New South Wales	24,400
Victoria	17,950
Queensland	15,540
Western Australia	8,245
South Australia	8,040
Tasmania	3,170

Printing of Letters

Letters will be printed at Security Mailing Services (SMS), Sydney, in the week from Monday 8 March to Friday 12 March 1999.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 12 March 1999.  A representative from National Office will notify the time, date and number of letters lodged for each State Office.

Special Register, Overseas & Enclosures

Special Register, overseas and enclosure advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  These should be checked for accuracy, and reconciled against the reports received by each State Office.  This arrangement is the same as for daily advice letters. Enclosures are letters involving a change in treatment eligibility. Each State Office will receive, as always, a report detailing the advice letters produced in each of these categories.  We will advise SSOs in each State when to expect delivery of these letters, and it is essential that Systems Delivery is notified if they do not arrive.  It is also necessary to advise Carol Walsh, Systems Delivery on 6289 6729 if the delivered letters do not exactly match the reports.

Advance Case Letters

Quarterly advice letters are scheduled for lodgement with Australia Post on 12 March 1999.  Daily advice letters for cases processed in advance for day 1 of pay period 20 (25 March 1999) should be dispatched prior to the dispatch of the quarterly advice letters from SMS.

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 5-7 March 1999 for pay period 20 (25 March 1999) should be held by State Offices until notification is received that quarterly letters have been dispatched.  This will ensure that pensioner's receive their letters in chronological order.

Manual Cases

To minimise the number of daily letters to be held whilst quarterly letters are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 25 March 1999.  General pensions processing should continue unabated but should be submitted for the subsequent pay day.

National Office Contacts

National Office contact – Systems

Queries or concerns regarding the system impact of the AL process should be directed to System Delivery, Carol Walsh on 02 6289 6729.

National Office contact – Advice letters

Queries or concerns regarding the content, format, production or delivery of advice letters should be directed to Business Delivery, Kristie Wallace 02 6289 6019.

Letter Mockups

Letter mockups

Attached are mock-ups and examples of paragraphs for the March 1999 quarterly letters: Example 1:  Less than maximum rate, increase, with Telephone Allowance Example 2:  Increase to Maximum rate, with Telephone Allowance and MI/SH in assessment, Full Income and Asset Listing Example 3:  Decrease as a result of MI/SH reassessment, no Telephone Allowance, Full Income and Asset Listing Example 4:  Saved rent assistance paragraphs

Letter variables

Please note, in the following samples: Letterhead, DC name and signature block will change according to State; The words “service pension”, “age pension” and “Income Support Supplement” each represent variables which will appear for those clients in receipt of the applicable pension; The words “income test” represent a variable; “assets test” will appear where applicable (these variable appear in the income and asset attachment which is not included with the samples); The paragraph headed Deemed Interest Rate Change – Financial Assets will appear in the body of all letters; The paragraphs headed What is Deemed Income?  and Total Financial Assets will appear in the body of the letter unless a reassessment of MI/SHs occurs.  These two paragraphs will then appear in the attached Full Income and Asset Listing.

EXAMPLE 1: Less than Max Rate, Married, Increase, Telephone Allowance payment, No MI/SH in assessment.

T-ADVICE-RETURN-ADDRESS

		Commonwealth Department of Veterans' Affairs
		STATE OFFICE
Contact:  T-CONTACT-OFFICER
Telephone:  T-CONTACT-TELEPHONE		AMP Place
		10 Eagle Street
		Brisbane  Qld  4000
		Postal Address:
		GPO Box 651 Brisbane  Qld  4001
		Telephone:
		Metropolitan Residents: (07) 32238333
		Country Residents: 1800 113304
		Interstate Residents: 1800 777634
		Facsimile: (07) 32238585
		T-ADVICE-PRINT-DATE
		YOUR FILE NUMBER IS T-FILE NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-EFFECTIVE-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

Indexation of pensions

Each year in March and September the Department reviews the rates of pensions and certain allowances.  These rates may be increased in line with changes in the cost of living and average earnings.

T-PENSIONS-SP-ISS-AP rates have been increased in line with changes in these figures.  The new rates will apply from T-CLNT-EFFECTIVE-DATE.

Increase to Allowances and Thresholds

Some allowances and thresholds have been increased in line with movements in the cost of living.  Details of the new rates and thresholds are contained in the General Information Sheet at the back of this letter.

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 4.5%

If your investments are earning more than the 3% or 4.5% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.

Deemed Interest Rate Change – Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 4.5% for amounts of $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 T-PENSION-SP-ISS-AP.

Total Financial Assets

FINANCIAL ASSETS VALUE	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	4.5%	$XX.XX
$XX,XXX.XX		$XXX.XX

Telephone Allowance

Your quarterly telephone allowance payment will be paid on T-DATE-OF-PAYMENT, together with your fortnightly rate of pension.  The current telephone allowance 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 letters and are detailed in the previously issued “You and Your Pension” booklet; 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 to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply you must do so within three 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,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

GENERAL INFORMATION SHEET

EXAMPLE 2: Increase to Maximum Rate, Telephone Allowance payment, MI/SH in assessment, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS

		Commonwealth Department of Veterans' Affairs
		STATE OFFICE
Contact:  T-CONTACT-OFFICER
Telephone:  T-CONTACT-TELEPHONE		AMP Place
		10 Eagle Street
		Brisbane  Qld  4000
		Postal Address:
		GPO Box 651 Brisbane  Qld  4001
		Telephone:
		Metropolitan Residents: (07) 32238333
		Country Residents: 1800 113304
		Interstate Residents: 1800 777634
		Facsimile: (07) 32238585
		T-ADVICE-PRINT-DATE
		YOUR FILE NUMBER IS T-FILE NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-EFFECTIVE-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

Indexation of pensions

Each year in March and September the Department reviews the rates of pensions and certain allowances.  These rates may be increased in line with changes in the cost of living and average earnings.

T-PENSIONS-SP-ISS-AP rates have been increased in line with changes in these figures.  The new rates will apply from T-CLNT-EFFECTIVE-DATE.

Increase to Allowances and Thresholds

Some allowances and thresholds have been increased in line with movements in the cost of living.  Details of the new rates and thresholds are contained in the General Information Sheet at the back of this letter.

You have been increased to the maximum rate of service pension.

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 – Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 4.5% for amounts of $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 T-PENSION-SP-ISS-AP.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-OF-PAYMENT with your fortnightly rate of pension.  The current telephone allowance rates are:

• World War 1 - $42.50
• General Rate (single pensioners, war widow(er)s and recipients of certain rates of disability pensions) - $15.60
• Married Rate - $7.80 each for pensioner couples.

Your Obligations

Your obligations have been explained to you in previous letters and are detailed in the previously issued “You and Your Pension” booklet; 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 to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you decided to apply you must do so within three 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,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

FULL INCOME AND ASSET LISTING

ATTACHMENT

GENERAL INFORMATION SHEET

EXAMPLE 3:  Decrease as a result of reassessment of MI/SH, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS

		Commonwealth Department of Veterans' Affairs
		STATE OFFICE
Contact:  T-CONTACT-OFFICER
Telephone:  T-CONTACT-TELEPHONE		AMP Place
		10 Eagle Street
		Brisbane  Qld  4000
		Postal Address:
		GPO Box 651 Brisbane  Qld  4001
		Telephone:
		Metropolitan Residents: (07) 32238333
		Country Residents: 1800 113304
		Interstate Residents: 1800 777634
		Facsimile: (07) 32238585
		T-ADVICE-PRINT-DATE
		YOUR FILE NUMBER IS T-FILE NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-EFFECTIVE-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXXXX

TOTAL FORTNIGTLY PAYMENT — xxx.xx — xxx.xx This is made up of: - xxxxxxxxx   xxxxxxxxx — xxx.xx — xxx.xx - xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

Indexation of pensions

Each year in March and September the Department reviews the rate of pensions and certain allowances.  These rates may be increased in line with changes in the cost of living and average earnings.

T-PENSION-SP-ISS-AP rates have been increased in line with changes in these figures.  The new rates will apply from T-CLNT-EFFECTIVE-DATE.

Increase to Allowances and Thresholds

Some allowances and thresholds have been increased in line with movements in the cost of living.  Details of the new rates and thresholds are contained in the General Information Sheet at the back of this letter.

Change to Rate of Pension

An increase in income has been assessed from your financial assets.  This increase is greater than the value of the increase applied to pensions.  This has resulted in an overall decrease in the amount of T-PENSION-SP-ISS-AP you receive.

Reassessment of Financial Assets

The assets 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 - Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3% for amounts up to $30,400 ($50,600 per couple) and 4.5% for amounts of $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 T-PENSION-SP-ISS-AP.

Your Obligations

Your obligations have been explained to you in previous letters and are detailed in the previously issued "You and Your Pension" booklet; 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 to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you decide to apply you must do so within three 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,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

FULL INCOME AND ASSET LISTING

ATTACHMENT

GENERAL INFORMATION SHEET

Example 4:  Saved Rent Assistance Paragraphs

Paragraphs for Saved Rent Assistance cases

NOTE: Anyone affected by the Saved Rent Provisions will have one of the paragraphs below inserted into their advice letter

1. To be used for less than max rate service pensioners with saved RA, or less than ceiling rate ISS with saved RA, where the value of the indexation or adjustment is less than the amount of saved RA.  This means that SP/ISS is increased by the indexation/adjustment amount, saved RA is reduced by the indexation/adjustment amount, and some saved RA remains.

2. To be used for less than max rate service pensioners with saved RA, or less than ceiling rate ISS with saved RA, where the value of the indexation or adjustment is equal to the difference between the saved RA amount and the correct rate of RA.  Therefore, SP/ISS is increased by the indexation/adjustment amount, saved RA is reduced by the indexation/adjustment amount to the correct rate of RA (where RA remains payable).

3. To be used for less than max rate service pensioners with saved RA, or less than ceiling rate ISS with saved RA, where the value of the indexation or adjustment is greater than the difference between the amount of saved RA and the correct rate of RA.  This means that SP/ISS is increased by the indexation/adjustment amount, saved RA is reduced to the correct rate of RA (and RA remains payable), and a partial increase is applied.

4. To be used for less than max rate service pensioners with saved RA, or less than ceiling rate ISS with saved RA, where the value of the indexation or adjustment is equal to the difference between the saved RA amount, and the correct rate of RA, where the RA is cancelled.  This means that SP/ISS is increased by the indexation/adjustment amount, saved RA is reduced by the indexation/adjustment amount, and no RA remains payable.

5. To be used for less than max rate service pensioners with saved RA, or less than ceiling rate ISS with saved RA, where the value of the indexation or adjustment is greater than the difference between the amount of saved RA and the correct rate of RA, where the RA is cancelled.  This means that SP/ISS is increased by the indexation/adjustment amount, saved RA is reduced to the correct rate of RA, which is $0.00, and a partial increase is applied.