1. The document discusses foreign pensions that Australians may be entitled to if they have lived or worked in another country. Claiming any foreign pensions owing is required to maximize total income. 2. It provides information on agreement countries that Australia has social security agreements with and the process for claiming pensions from them. 3. Foreign pensions, except for foreign war disability pensions, are counted as income and can affect Australian pension rates. Proper notification of foreign pension entitlements is required.

1. FOREIGN PENSION FUNDS
Presented by:
Sharumathi .R

2. FOREIGN PENSION
• A ‘foreign pension’ is a payment that is:
Available from a foreign country; and similar to a service pension, income support
supplement or a social security pension.
• If you have lived and worked in another country, or have made contributions to a social
security system or superannuation scheme in another country, you may be entitled to
receive a foreign pension.
• In the veterans’ entitlements act 1986 these pensions are known as ‘comparable foreign
pensions’.

3. REQUIREMENT TO APPLY FOR ANY FOREIGN
PENSION OWING TO YOU
• Anyone claiming or in receipt of a service pension or income support supplement is required
to also claim any foreign pensions to which they may be entitled. If you have a partner who is
eligible for foreign pension, they are also required to claim any foreign pension to which they
may be entitled, even if they are not claiming or in receipt of a pension in australia themselves.
• This is to ensure that pensioners maximise their total income by claiming any entitlements
they may have from an overseas social security system or superannuation scheme.
• Eligibility for any foreign pension depends on the requirements of the particular country,
such as length of residency or employment. Although we may be able to advise you in general
terms about the eligibility requirements, we cannot decide whether you are eligible.

4. AGREEMENT COUNTRIES
• Claim forms for pensions from the agreement countries are available from centrelink
offices. DVA staff can help you complete the forms if necessary, and can also assist you with
any enquiries you might have.
• Claims for pensions from the agreement countries should be lodged with centrelink.
Centrelink will ensure that you have completed the appropriate forms and provided the
necessary documents for the claim, and will lodge the claim with the agreement country on
your behalf. The date on which centrelink receives a claim is accepted by most agreement
countries as the official date of lodgement of a claim for a pension from that country.
• For more information about these pensions contact centrelink international services on 131
673.

5. The australian government has negotiated international social security agreements with the following countries
(known as ‘agreement countries’):
•Austria
•Belgium
•Canada
•Chile
•Croatia
•Cyprus
•Czech
Republic
•Denmark
•Finland
•Germany
•Greece
•Hungary
•India
•Ireland
•Italy
•Japan
•Korea
•Latvia
•The
former
Yugoslav
Republic
of
Macedoni
a
•Malta
•The
Netherlan
ds
•New
Zealand
•Norway
•Poland
•Portugal
•Slovak
Republic
•Slovenia
•Spain
•Switzerla
nd
•USA

6. OTHER COUNTRIES WHICH PAY FOREIGN PENSIONS
• There are a number of countries that will pay pensions to former residents now living in
Australia , although they do not have an international social security agreement with the australian
government. These are referred to as non-agreement countries.
• To claim a pension from a non-agreement country you need to write a letter to the relevant
authority in that country. You should include as much information as possible about your working
life in that country. DVA can assist you in drafting the letter, however, neither DVA nor centrelink
can lodge the claim on your behalf.
• Contact details for the relevant authority in non-agreement countries are available by calling
centrelink international services on 131 673.

7. TRAVELLING OVERSEAS
• If you are travelling to a country where you may have an entitlement to claim a foreign
pension, you are required to make a claim for that foreign pension while you are in the
paying country. If you have previously applied and been rejected because of location
restrictions you are also required to apply while you are in the paying country.

8. EXEMPTIONS FROM CLAIMING A FOREIGN PENSION
• You are not required to claim a foreign pension if there is a risk of danger to you or your
family, for example, if you are a former refugee.
• Also, if a country is in a state of civil war, or is politically or economically unstable, you
do not have to apply. This is because your claim would have little chance of being
processed.

9. WHAT IF YOU ARE GRANTED A FOREIGN PENSION?
• The country you are claiming from will advise you directly if you have been granted a
pension. They will also advise you of the payment details. If you are granted a foreign
pension, and you receive an income support pension from DVA, you would need to tell
us within 14 days (28 days if you live overseas or receive remote area allowance) of
receiving advice that you have been granted an overseas pension.

10. FOREIGN PENSIONS COUNTED AS INCOME
• Foreign pensions (except foreign war disability pensions) are counted as income in
the assessment of your service pension, income support supplement, or social security
payment. If you receive a lump sum payment representing a period of retrospective
foreign pension entitlement, your Australian pension will be reassessed over that
period.
• Foreign war disability pensions are not counted as income in the assessment of
service pensions. However, they are counted as income in the assessment of income
support supplement and pensions and benefits paid under the social security act 1991.

11. EXCHANGE RATES FOR BRITISH INCOME
• DVA monitors the market exchange rate for pounds sterling. The exchange rate
used during the monitoring period is the ‘on demand air mail buying rate’ as
supplied by the commonwealth bank. This rate has been used to convert pounds
sterling to australian dollars since the passage of the social security and veterans'
affairs legislation amendment act (no.4) in 1989. If the exchange rate varies by plus
or minus 2.5%, that new rate will be reflected in your next pension instalment.

12. EXCHANGE RATES FOR OTHER CURRENCIES
• The exchange rates used to convert the current gross rate of other foreign currencies
into australian dollars are the ‘telegraphic transfer buying rates’ as supplied by the
commonwealth bank. For infrequently traded currencies not available from the
commonwealth bank, an appropriate exchange rate is obtained from foreign currency
sites on the internet.
• Exchange rates are updated on the friday prior to the dva payday for all currencies.

13. EXCHANGE RATES FOR OTHER CURRENCIES, CONTINUED
• Updated exchange rates are only applied:
In march and september each year; and
When you ask for a re-assessment; and
When you notify a change for any foreign pension; and
When you notify a change for any managed investment or share.
• The actual foreign currency amount of the pension or annuity is only updated when you
notify of a change in the foreign currency amount actually paid to you.

14. FAILURE TO APPLY FOR A FOREIGN PENSION
• If you or your partner do not apply for a foreign pension for which you might be eligible,
DVA can reject your claim for service pension or income support supplement. If you are
already being paid service pension or income support supplement, you and your partner may
be required to apply for a foreign pension. If either of you do not do so within a reasonable
time, your service pension or income support supplement may be suspended or cancelled.
• If you or your partner are eligible for an overseas pension and refuse it, we may consider it
as deprived income and count the amount as income for pension purposes. For more
information refer to giving away income or assets.

15. OBLIGATIONS
• When you are granted an income support pension, and periodically after that, you will be
notified of your obligations. You will be required to tell us within 14 days (28 days if you
live overseas or receive remote area allowance) of changes to your circumstances that
might affect the rate of income support pension you receive or your eligibility to receive
that pension. These obligations apply equally to trustees.
• In relation to your foreign pension, you need to tell us within 14 days (28 days if you
live overseas or receive remote area allowance) of receiving advice that you have been
granted a foreign pension, or if the amount of your payment is varied. You do not need to
tell us of changes to the exchange rate.
• Usually an overpayment of pension will not occur when you have met your obligations.
However, sometimes even if you have met your obligations, an overpayment can occur
because we have not been able to process the change before the next payday. We do our
best to avoid this occurring, but it is not always possible. To provide you with your exact
entitlement we are obliged to recover overpayments of pension where they do occur.