VANZ News Issue 5
Rates of War Disablement Pension
Recently there has been publicity about the changes to the rates at which NZ Superannuation and War Disablement Pension are paid.
This rise reflects increases to the Consumers Price Index, and helps compensate veterans for the rise in living costs.
Rates of New Zealand Superannuation and Veterans’ Pension increased on 1 April 2011. The new rate of NZ Superannuation and Veterans’ Pension is set at 66% of the average net wage. The new rate for a couple is $522.96 per week (after tax). Unlike War Disablement Pensions, which are not taxed, NZ Superannuation and Veterans’ Pension is considered taxable income.
If you receive a War Disablement Pension, this is paid in addition to your NZ Superannuation or Veterans’ Pension. War Disablement Pension rates increased by 3.75% on 1 April 2011.
Veterans who are aged over 65 years and are in receipt of a War Disablement Pension of 70% or more, or aged under 65 years and unable to work, may qualify for Veterans’ Pension. The benefits of Veterans’ Pension include automatic entitlement to a Community Services Card without income or asset testing for the veteran and their partner. Veterans’ Pension does not cease to be paid to recipients who are hospitalised for 13 weeks or more, which is when entitlements such as NZ Superannuation are reduced. Veterans’ Pension also gives entitlement to a lump sum payment of $5,579.25 on the death of the veteran, and $4,254.34 on the death of a partner. This is paid in addition to the war funeral grant of $2,353.44.
War Disablement Pension payments do not count as income for the purposes of income testing for any social security entitlement. This allows recipients of War Disablement Pensions to access assistance such as the Disability Allowance and Accommodation Supplement despite not meeting the income threshold that other New Zealanders have to meet. Veterans also receive fully funded medical treatment for every accepted disability. In addition, travel costs to medical appointments are reimbursed.
Examples of the New Rates
A veteran in receipt of a 65% War Disablement Pension will receive $129.39 per week (tax free) in addition to their Veterans’ Pension.
A veteran who is on a 100% War Disablement Pension will now receive a payment of $199.05 per week (tax free) as well as their Veterans’ Pension.
A veteran, who is over 60 and in receipt of a War Disablement Pension of 160% (inclusive of Section 23), will now receive a payment of $350.34 per week (tax-free).
Veterans in receipt of the maximum rate of War Disablement Pension (100%) are also entitled to a travel concession for recreational travel.
If the veteran is severely disabled and unable to travel alone, they can have the costs of someone to escort them paid if the travel is on public transport. In addition, they receive an additional travel allowance of $24.08 per week.
Veterans in receipt of the maximum rate of War Disablement Pension (100%) are also able to access additional assistance around the house from the Attendant Allowance scheme. A veteran who needs assistance to enable them to stay in their own home, or assistance with personnel care, can receive up to a maximum of $368.65 worth of services a week.
The rate at which the Surviving Spouse Pension is paid also increased on 1 April 2011. This is now paid at $146.83 per week (tax-free) and is paid in addition to New Zealand Superannuation or Veterans’ Pension.
A list of the new rates can be downloaded from War Pensions >> Pensions and Allowances Rates. If you don’t have access to the internet you can get a copy by ringing the VANZ freephone number 0800 483 8372.