Deem team drops rates

The Department of Veterans Affairs has lowered the ‘deeming rate’ on pensioners’ financial investments to reflect the slowdown in the world economy and recent reductions in interest rates.
The Minister for Veterans’ Affairs, Alan Griffin, said the new rate, which ‘deemed’ that a particular interest rate was earned by an investment, regardless of what the true amount was, would take effect from 17 November.

Interest rate lowered at DVA

   Mr Griffin said the deeming rate would be reduced from 4 per cent to 3 per cent for the first $41,000 of a single pensioner’s financial investments or $68,200 for a couple and it would shift from 6 per cent to 5 per cent for the balance of financial investments over these amounts. The difference would be included in payments from 4 December.
   Mr Griffin said payments affected by the deeming rate would include service pension and the income support supplement.
   He said the lowering of the deeming rates meant part rate pensioners paid under the income test with investments mainly in term deposits, shares, managed investments and other accounts could receive an increase in their pension payments.
   He said no changes would be made to pension payments for veterans who were already paid at the maximum rate.
   Mr Griffin said the decision would help ease the financial pressures placed on DVA pensioners and complemented the one-off payments announced as part of the Government’s Economic Security Strategy.
   “I have also asked DVA to update the value of pensioners’ listed securities and managed investments,” he said.
   “As a result, on 20 November, nearly 18,000 DVA income support pensioners will receive an average increase of $10 per fortnight.”
   Further information for affected pensioners could be obtained by phoning the Department on 133 254.

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