This chapter outlines the situations where the Commission [2] may approve payment of a pension to a person other than the pensioner.
Agents and Trustees
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
Last amended: 17 March 2010
It is the Commission's policy that wherever possible a pension is to be paid directly to the pensioner. There are two categories of people besides the pensioner to whom the Commission [2] may approve payment of pension. They are known as agents and trustees.
An agent [2] is someone the pensioner nominates to receive his or her pension payments. The agent operates under the instructions of the pensioner. Both the pensioner and agent are legally obliged to notify DVA of changes to the pensioner's circumstances.
More ? [7]
Where pension payments are made via group payment, the most appropriate arrangement would be an agency arrangement, where each individual pensioner has an agency arrangement with the group payee.
More ? [8]
A trustee [2], is a person appointed by the Commission, with or without the consent of the pensioner, to manage pension or allowance payments on behalf of the pensioner, if the pensioner is determined to be incapable of managing their own financial affairs.
More ? [9]
Redirection of pension payments to an agent or a trustee of the pensioner is not intended to conflict with the inalienability (ownership of pension instalments) provisions. The payments are protected in the same manner as though the payments were made to the pensioner.
More ? [10]
Persons acting on behalf of pensioners are not authorised to receive pension payments on behalf of the pensioner simply because they:
There is no provision to redirect payments to a third party other than an agent or trustee of the pensioner.
Persons authorised by a pensioner to act on their behalf, such as those holding power of attorney are able to assist the pensioner to meet their obligations under the VEA by notifying DVA of changes on his or her behalf. However, the obligation to inform DVA of changes in circumstances that may affect his or her pension or allowance remains with the pensioner, and where appropriate, their agent.
For income support purposes, authorised third parties have the authority to:
Person's holding a valid financial power of attorney can also be accepted, on the VEA standard of reasonable satisfaction, as having the legal authority to:
If the power of attorney is signing a concession card on behalf of the card holder, they must identify that they have done so, next to their signature. The signature will therefore appear as ___PoA signature___(signed by power of attorney on behalf of (card holder's name)).
A record of power of attorney documentation must be held on the pensioner's file for the signature to be valid.
If there are concerns that a pensioner is so ill or infirm that they are unable to manage their own financial affairs, then trustee arrangements should be established.
Reference Library – DI re Client security checks before releasing or accepting information
DI/C08/2008 [20]
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
According to section 58D of the VEA, an agent is a person who has been nominated by a pensioner and approved by the Commission to receive pension instalments on behalf of the pensioner. The agent must:
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [5], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [5], trustee has the same meaning as in the Income Tax Assessment Act 1997 [22].
This section outlines the policy on appointing and making payments to agents [2].
According to section 58D of the VEA, an agent is a person who has been nominated by a pensioner and approved by the Commission to receive pension instalments on behalf of the pensioner. The agent must:
Last amended: Why appoint an agent?
The Commission [2] may appoint a person to be an agent [2] and receive payments on behalf of a pensioner if requested to do so by the pensioner.
More ? [25]
VEA ? [26]
An agent must either:
Both the pensioner and the agent are legally obliged to notify DVA of changes in the pensioner's circumstances. A pensioner's obligations under sections 54, 54A, 54AA and 127 apply to their agent. Obligations do not apply to the agent where agency arrangements exist with a group payee.
VEA ? [27]
Although a pension may be paid to an agent, the payment is taken to be a payment to the pensioner. Any obligations imposed under the VEA on a pensioner to notify the Department of an event or change of circumstances apply to both the pensioner and the agent.
More ? [28]
Where agency arrangements are established, the whole of the pensioner's payments will be paid to the agent. The payments may be made to:
11.3.2/Appointment of an Agent [30]
11.5.2/Accounts into Which Direct Credit Payments can be Made [31]
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
According to section 58D of the VEA, an agent is a person who has been nominated by a pensioner and approved by the Commission to receive pension instalments on behalf of the pensioner. The agent must:
VEA ? [40]
Any person may be appointed as an agent [2] provided the Commission [2] receives an appropriate written application as set out below.
A written request must be received by the Commission specifying the following terms of agreement:
Commission may then approve the appointment of the agent by instrument in writing.
In order to identify the proposed agent, a proof of identity check must be made on all applications.
More ? [41]
VEA ? [42]
Once an agent has been appointed, the Commission's written approval should be forwarded to the pensioner, specifying the terms of the agreement.
More ? [43]
According to section 58D of the VEA, an agent is a person who has been nominated by a pensioner and approved by the Commission to receive pension instalments on behalf of the pensioner. The agent must:
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
This section outlines the policy regarding the appointment and making payments to a trustee [2].
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [5], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [5], trustee has the same meaning as in the Income Tax Assessment Act 1997 [22].
VEA ? [51]
The Commission [2] may appoint a person to be a trustee [2], when satisfied that the pensioner:
More ? [52]
The trustee:
The trustee must be acquainted with and obey the terms and conditions of the trust which specify that the trustee must:
More ? [53]
The trustee cannot delegate any powers or responsibilities of the trust to another person.
VEA ? [54]
While the trust is in force trust funds may be applied for the benefit of the pensioner, family member or dependant, as the trustee sees fit. The trustee may:
VEA? [33]
The trust fund held by the trustee consisting of pension, allowance, investments and interest received on investments shall be dealt with as follows:
If... |
Then the trust funds shall be paid or transferred to the... |
The trust is terminated |
Pensioner |
The pensioner dies |
Legal representative of the deceased pensioner. Note: If there is no legal personal representative the trust funds shall be paid or transferred to the person whom the Commission determines to be best entitled to them. |
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [5], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [5], trustee has the same meaning as in the Income Tax Assessment Act 1997 [22].
Veterans' Entitlements Act 1986.
Last amended: 31 January 2008
The Commission [2] may appoint trusteeship for a pensioner to any of the following:
Note: For aged care residents, it is prudent to appoint a neutral party such as the Public Trustee, rather than an employee of an aged care facility as trustee, to avoid the potential for conflict of interests in the management of the pensioner's money.
VEA ? [61]
A written application must be received by the Commission, and include the following:
In order to identify a proposed trustee and/or their relationship to the pensioner, a proof of identity check must be made on all applications.
More ? [62]
An application for appointment of a trustee must be supported by two professional certificates establishing that a person is infirm or otherwise incapable of managing their own affairs, and requires a trustee. At least one of the reports must be from a medical practitioner. The other may be from some other professional person e.g. a social worker.
Once approved, notification of the appointment is to be made in writing to the trustee, and include a copy of the terms and conditions of the trust.
More ? [63]
According to Section 179 [5]of the VEA [5], the Commission is a body corporate under the name of Repatriation Commission.
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [5], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [5], trustee has the same meaning as in the Income Tax Assessment Act 1997 [22].
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16914%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/115-manner-payment
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/118-ownership-pension-instalments
[5] http://clik.dva.gov.au/legislation-library
[6] https://clik.dva.gov.au/user/login?destination=node/16926%23comment-form
[7] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn100
[8] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn101
[9] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn102
[10] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn103
[11] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn104
[12] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1132-agents/payments-agents
[13] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn100
[14] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1132-agents
[15] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/115-manner-payment/1154-payment-group-payment
[16] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn101
[17] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1133-trustees
[18] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn102
[19] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn103
[20] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2008/c082008-client-security-checks-releasing-or-accepting-information
[21] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn104
[22] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401745?OpenDocument
[23] https://clik.dva.gov.au/user/login?destination=node/16964%23comment-form
[24] https://clik.dva.gov.au/user/login?destination=node/16980%23comment-form
[25] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn105
[26] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn106
[27] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn107
[28] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn108
[29] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn109
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1132-agents/appointment-agent
[31] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/115-manner-payment/1152-payment-direct-credit/accounts-which-direct-credit-payments-can-be-made
[32] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn105
[33] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[34] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn106
[35] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn107
[36] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations
[37] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn108
[38] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn109
[39] https://clik.dva.gov.au/user/login?destination=node/16973%23comment-form
[40] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn110
[41] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn111
[42] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn112
[43] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn113
[44] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn110
[45] https://clik.dva.gov.au/compensation-and-support-policy-library/part-2-applying-pension/22-proof-identity
[46] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn111
[47] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn112
[48] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn113
[49] https://clik.dva.gov.au/user/login?destination=node/16921%23comment-form
[50] https://clik.dva.gov.au/user/login?destination=node/16912%23comment-form
[51] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn114
[52] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn115
[53] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn116
[54] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn117
[55] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn114
[56] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1133-trustees/appointment-trustee
[57] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn115
[58] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn116
[59] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn117
[60] https://clik.dva.gov.au/user/login?destination=node/16935%23comment-form
[61] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn118
[62] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn119
[63] https://clik.dva.gov.au/book/export/html/16914#tgt-cspol_part11_ftn120
[64] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn118
[65] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn119
[66] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/113-agents-and-trustees/1133-trustees/payments-trustees
[67] https://clik.dva.gov.au/book/export/html/16914#ref-cspol_part11_ftn120