Last amended: 22 April 2014
VEA ? [2]
In certain circumstances, a person who has been deferring age pension [3] then becomes a war widow/widower [3] before claiming age pension and their bonus, may have bonus periods accrued at Centrelink [3] included in the calculation of their bonus by DVA [3]. To have these bonus periods included in the bonus calculation, a war widow/widower must:
At some time before becoming a war widow/widower, it is possible for a war widow/widower to have claimed, but never received, age pension and bonus. If the person made such a claim at Centrelink but received no payment, either because they were ineligible or not payable, the period during which they deferred age pension can still be included in the calculation of the DVA bonus.
A period during which a person has deferred age pension prior to becoming a war widow/widower may be treated as if it is a bonus period under the VEA [3]. For this to occur Commission must determine that had the person applied for the bonus in respect of that period immediately before becoming a war widow/widower, that period would have accrued as a bonus period under social security law. This requires Commission to determine a number of matters, including whether particular periods were periods of accruing membership and whether the person or their partner passed the work test for those periods. If the person was not registered at Centrelink, the Commission must also determine from what date the person could have been registered.
VEA ? [4]
A person can accrue a maximum of five qualifying bonus periods with the most recent bonus periods taken into account when the bonus is calculated. The number of bonus periods accrued under the VEA will affect whether and to what extent any bonus periods accrued under social security can be included in the calculation of the bonus. Any decision made by a war widow/widower concerning when to claim pension and bonus should take account of this. Once five years has been accrued, any additional full-year bonus periods will take the place of the earlier bonus periods. As a result, the bonus periods accrued at DVA (which may attract a lower bonus because of the ceiling rate [3]) will gradually replace those accrued at Centrelink (where payment is not subject to a ceiling).
Mrs Calley worked for three years after reaching age pension age and was deferring age pension. Her husband, who was a veteran [3], died just after the third anniversary of her registration for the scheme. She became a war widow upon his death, so then registered for the scheme with DVA and continued to work for another twelve months. Her overall qualifying period is four years. Her first bonus period commences on the date of her registration for the Centrelink scheme.
Generally the rules applicable to the DVA pension bonus scheme apply to these war widows/widowers. However, the rules vary in the following respects:
Example of pension bonus calculation – change in pension deferred
5.6.8/No change of Marital Status – Standard Formula not Applicable [12]
An age pension is a means tested [3] income support payment [3] paid by Centrelink [3] or DVA [3] on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. The majority of age pensions are paid through Centrelink. However, eligible veterans [3] who have an accepted disability [3] or receive a Disability Compensation Payment [3] from DVA, but do not have qualifying service [3], may be paid their age pension by DVA. Their partner may also receive their age pension from DVA, if eligible.
A war widow/widower is generally a person who immediately before their partners death, was the partner of, or was legally married to:
Refer to 5E(1) [14] of the VEA for the full definition.
Centrelink is a Government service delivery agency responsible for delivering a range of Commonwealth Government services (including social security pensions and allowances) to the Australian community through a network of more than 400 Centrelink offices.
The Department of Veterans' Affairs.
According to Section 179 [15]of the VEA [15], the Commission is a body corporate under the name of Repatriation Commission.
Means carer payment under the Social Security Act 1991.
Age Pension Age refers to pension age [3] as defined under the Social Security Act 1991, that is, pension age for people other than veterans.
The social security law includes:
The pension bonus scheme closed to new entrants on 20 September 2009. Existing members can continue in the scheme under the rules that existed prior to 20 September 2009. The pension bonus scheme provided an incentive for older Australians to remain in the workforce and defer receipt of income support pension [16]. The incentive was a bonus, payable if all eligibility criteria and rules were satisfied.
The pension bonus was a once-only, tax-free lump sum payable to a person who, on reaching their special date of eligibility [17], voluntarily deferred retirement for at least one year and registered as a member of the scheme. The pension bonus was claimed at the same time as claiming pension and is calculated using the annual rate of basic pension payable at grant, multiplied by the bonus periods accrued.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
Veterans' Entitlements Act 1986.
The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:
If a person:
became a war widow/widower-pensioner before 1 November 1986,
has continually received service pension, social security pension or ISS since that date, and
the rate of pension immediately before that date was more than $120.10
in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.
If a person:
is a person to whom ISS is payable,
is not permanently blind, and
whose War Widow's/Widower's Pension paid under Part II or IV of the VEA is reduced,
the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.
For the purposes of Part VI of the VEA [15], a reference to a veteran is taken to be a reference to:
For the purposes of Part VII of the VEA [15], according to subsection 5C(1), veteran means a person (including a deceased person):
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16178%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16178#tgt-cspol_part5_ftn285
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16178#tgt-cspol_part5_ftn286
[5] https://clik.dva.gov.au/book/export/html/16178#tgt-cspol_part5_ftn287
[6] https://clik.dva.gov.au/book/export/html/16178#tgt-cspol_part5_ftn288
[7] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[8] https://clik.dva.gov.au/book/export/html/16178#ref-cspol_part5_ftn285
[9] https://clik.dva.gov.au/book/export/html/16178#ref-cspol_part5_ftn286
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/56-pension-bonus-scheme/565-types-membership/non-accruing-membership
[11] https://clik.dva.gov.au/book/export/html/16178#ref-cspol_part5_ftn287
[12] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/56-pension-bonus-scheme/568-factors-affect-calculation-bonus/no-change-marital-status-standard-formula-not-applicable
[13] https://clik.dva.gov.au/book/export/html/16178#ref-cspol_part5_ftn288
[14] http://www.comlaw.gov.au/Details/C2015C00011
[15] http://clik.dva.gov.au/legislation-library
[16] clikpopup://DEF/Income%20support%20pension
[17] clikpopup://DEF/Special%20date%20of%20eligibility