Performance Information for Appropriations. Vote Veterans' Affairs - Social Development

Transcription

1 Performance Information for Appropriations Vote Veterans' Affairs - Social Development MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Veterans Affairs (M75) ADMINISTERING DEPARTMENT: Ministry of Social Development MINISTER RESPONSIBLE FOR MINISTRY OF SOCIAL DEVELOPMENT: Minister for Social Development and Employment SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol

2 Part 1 - Summary of the Vote Part Overview of the Vote The Minister of Veterans' Affairs is responsible for appropriations in the Vote for the 2008/09 financial year covering the following: a total of just over $4.100 million to process and pay War Disablement Pensions and related allowances, veterans'-related pensions and concessions and payments under the Rehabilitation Loan Programme, and a total of just over $336 million for benefits and other unrequited expenses (administered through the Ministry of Social Development). Details of these appropriations are set out in Parts 2-6 below. Part High-Level Objectives of the Vote Government Priorities and Outcomes - Links to Appropriations Government Priorities - Themes/Sub-themes Government Outcomes Appropriations Theme: Families - young and old strong families Working Age People: Processing and Payment of Pensions, Medical Treatment, Veteran s Pension, and War Disablement Pensions. Theme: Families - young and old safe communities Communities, Hapū and Iwi: Interest Concessions Land and Buildings. Theme: Families - young and old positive ageing Older People: Interest Concessions Land and Buildings, Medical Treatment, Veteran's Pension, and War Disablement Pensions. Objectives of the Vote Vote Veterans' Affairs - Social Development contributes on behalf of the Government to the theme of Families - young and old through the processing and payment of the Veteran s Pension. The impacts that the appropriations in Vote Veterans' Affairs - Social Development are intended to have on different groups in society are reflected in the Ministry of Social Development s outcomes: Working Age People Older People, and Communities, Hapū and Iwi. The table above maps the Ministry of Social Development s outcomes and appropriations to the Government s theme of Families - young and old, and the Government s Outcomes and Objectives. Most of the Ministry s appropriations map to more than one Government Outcome and Objective. 128 SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10

3 Part Trends in the Vote Summary of Financial Activity SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol Appropriations 2003/ / / / / / / / /12 ed Departmental Transactions Non- Departmental Transactions Output Expenses 3,633 3,849 3,548 3,683 4,155 4,155 4,155-4,155 4,155 4,155 4,155 Benefits and Other Unrequited Expenses 224, , , , , ,347 N/A 336, , , , ,697 Borrowing Expenses Other Expenses Capital Expenditure Intelligence and Security Department Expenses and Capital Expenditure Total N/A Total Appropriations 228, , , , , ,502 4, , , , , ,852 Crown Revenue and Receipts Tax Revenue N/A N/A Non-Tax Revenue N/A N/A Capital Receipts N/A N/A Total Crown Revenue and Receipts N/A N/A VOTE VETERANS' AFFAIRS - SOCIAL DEVELOPMENT

4 Policy Initiatives Policy Initiative Appropriation 2007/08 ed 2008/ / / /12 Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas Veterans' Pension (M75) Non-Departmental Benefits and Other Unrequited Expenses Total Initiatives Analysis of Significant Trends Total Vote: All Appropriations Significant changes in departmental and non-departmental appropriations in Vote Veterans' Affairs, are discussed briefly below. Figure 1 - Trends in total voted and actual expenses and capital expenditure Source: Ministry of Social Development The movements in departmental and non-departmental appropriations in Vote Veterans' Affairs - Social Development, which are detailed in the Summary of Financial Activity table above, are driven by movements in Non-Departmental Benefits and Other Unrequited Expenses. 130 SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10

5 Non-Departmental Benefits and Other Unrequited Expenses Figure 2 - Trends in non-departmental benefits and other unrequited expenses Source: Ministry of Social Development Annual expenditure is forecast to increase to $ million in 2011/12 from $ million in 2003/04. Veteran s Pension Annual expenditure is forecast to increase to $ million in 2011/12 from $ million in 2003/04, a 97% increase over the nine-year period. Veteran s Pension recipients are forecast to increase to an average of 12,200 in 2011/12 from 8,200 in 2003/04. Both the number of recipients and the average payment rate have grown over the past five years, contributing to the rise in expenditure. Both trends are expected to continue through to 2011/12. Accumulated cost of living adjustments to the standard Veteran s Pension rates of payment account for about 43% of the change in expenditure and drives the average rate trend. The number of people transferring to Veteran s Pension from New Zealand Superannuation has been the dominant driver of growth in recipients. War Disablement Pensions Annual expenditure is forecast to increase to $ million in 2011/12 from $ million in 2003/04, a 54% increase over the nine-year period. The number of War Disablement Pensions recipients is forecast to fall to an average of 19,400 in 2011/12 from 22,000 in 2003/04. As the recipient population ages, the average level of disability is increasing, with an increasing number of recipients applying for recognition of multiple disabilities. The average payment rate rises with disability levels. Over the last five years this effect has more than offset the decrease in expenditure due to the falling number of recipients. SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol

6 Medical Treatment Annual expenditure is forecast to increase to $ million in 2011/12 from $ million in 2003/04, a 64% increase over the nine-year period. Approximately 88% of this increase is due to increased expenditure on Medical Treatment (excluding Australia). This reflects the increasing trends in disablement levels and multiple disabilities described above for War Disablement Pensions. Interest Concessions Land and Buildings Annual expenditure is forecast to decrease to $17,000 in 2011/12 from $120,000 in 2003/04, an 86% decrease over the nine-year period. There are both fewer outstanding loans and lower amounts of outstanding capital per loan. 132 SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10

7 Part 2 - Details and Expected Performance for Output Expenses Part Departmental Output Expenses Intended Impacts, Outcomes and Objectives Intended Impacts, Outcomes or Objectives of Appropriations Outcome - Working Age People Appropriations Processing and Payment of Pensions Objective - Enable people to live independent lives. All New Zealanders have access to services and the ability to obtain skills that will allow them to live healthy and productive lives. Outcome - Older People Processing and Payment of Pensions Objective - Enable older people to lead full and secure lives. Older people have access to their full entitlements and are able to live independently. Processing and Payment of Pensions (M75) Scope of Appropriation The purchase of processing and payment of War Disablement Pensions and related allowances, veterans -related pensions and concessions and payments under the Rehabilitation Loan Programme. Expenses and Revenue 2007/ /09 ed Total Appropriation 4,155 4,155 4,155 Revenue from the Crown 4,132 4,132 4,132 Revenue from Others SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol

8 Output Performance Measures and Standards 2007/ /09 Performance Measures ed Standard Standard Standard Quality The percentage of actions accurately processed by War Pensions Services will be no less than: 95% 95% 95% Timeliness The percentage of new disability applications and reassessments of accepted disability that are administered and processed by the Ministry of Social Development (applications are acknowledged and the decisions of the claims panels relayed to veterans) will be completed within 14 working days will be no less than: The percentage of National Review Officer decisions that are administered and processed by the Ministry of Social Development (application acknowledged and decision referred to the claims panel) within 9 working days will be no less than: The percentage of ad hoc payments, overseas treatment schedules, rehabilitation schedules and reimbursements that will be made within 21 working days of receipt will be no less than: The percentage of calls answered within 20 seconds will be no less than: The percentage of new Veteran's Pension applications that are administered and processed by the Ministry of Social Development (application acknowledged and decision relayed to the veteran) within 7 days will be no less than: 85% 90% 90% 90% 90% 90% 97% 97% 97% 90% 90% 90% 90% 90% 90% Veterans' satisfaction The results of the veterans' satisfaction survey will be reported biennially to the Minister, where veterans' satisfaction with the level of service and information provided will be no less than: 85% 85% 85% Conditions on Use of Appropriation Reference War Pensions Act 1954 War Pensions Regulations 1956 Timeliness of disability applications and reassessments Veterans' satisfaction reported biennially Conditions The War Pensions Act 1954 provides for the payment of Veteran's Pension and War Disablement Pensions. The War Pensions Regulations 1956 provide for the administration of Veteran's Pension and War Disablement Pensions. This includes specifying costs associated with medical treatment paid for disabilities found to be attributable to or aggravated by service with armed forces prior to 1 April 1974, or as a result of service on or after 1 April 1974 in connection with a recognised war or emergency. This performance measure relates to the processing of applications to the stage of referral to the War Pensions Claims Panel and then the processing of the Panel's decision. It does not include the time taken for medical assessments and decision-making by the Panel. The veterans' satisfaction survey will be conducted next in 2009/10. The last survey was conducted in 2007/ SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10

9 Part 3 - Details for Benefits and Other Unrequited Expenses Part Non-Departmental Benefits and Other Unrequited Expenses Intended Impacts, Outcomes and Objectives Intended Impacts, Outcomes or Objectives of Appropriations Outcome - Working Age People Outcome - Older People Outcome - Communities, Hapū and Iwi Appropriations Medical Treatment, Veteran's Pension, and War Disablement Pensions. Interest Concessions Land and Buildings, Medical Treatment, Veteran's Pension, and War Disablement Pensions. Interest Concessions Land and Buildings Objective - Strengthening communities. Build our relationships with, and the capability of, the community and voluntary sector to ensure that New Zealand families and communities are strong and resilient. Interest Concessions Land and Buildings (M75) Scope of Appropriation Provision of the differential between the 3% or 5% Rehabilitation Loan rate and the current market rate as set out in the Rehabilitation Act Legislation enacting the scheme was repealed in August 1991 and the Rehabilitation Loan Programme has since ceased. Current provisions cover the grandparenting of loans. Expenses 2007/ /09 ed Total Appropriation Reasons for Change in Appropriation A decrease in the value of outstanding loans. Conditions on Use of Appropriation Reference Interest Concessions Land and Buildings - Rehabilitation Loan rates are set in accordance with the Rehabilitation Act Payments continue under section 3 of the Rehabilitation Repeal Act Conditions The Rehabilitation Loan Programme funds the difference between the fixed 3% or 5% interest rate, available to eligible ex-service personnel for their mortgage, and the current market rate. No further Rehabilitation Loans are available. These loans are being grandparented out of the system for all recipients current immediately prior to 1 August All current loans have a value of below $11,000. SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol

10 Medical Treatment (M75) Scope of Appropriation Provision to pay assessment costs for War Disablement Pension applications and reviews, medical treatment costs for accepted service-related disabilities, and the costs of appliances and aids required as a result of an accepted disability. All costs associated with medical treatment are set out in the War Pensions Regulations Expenses 2007/ / / / /12 ed Total Appropriation 18,884 18,386 19,468 19,906 20,254 20,483 Reasons for Change in Appropriation Approximately 68% of this increase is due to increased expenditure on Medical Treatment (excluding Australia). This reflects the increasing trends in disablement levels and multiple disabilities described below for War Disablement Pensions. Conditions on Use of Appropriation Reference Medical treatments paid in accordance with the War Pensions Regulations Conditions Medical Treatment is a War Disablement Pension entitlement available for disabilities found to be attributable to or aggravated by service with the armed forces prior to 1 April 1974, or as a result of service on or after 1 April 1974 in connection with a recognised war or emergency. This entitlement covers medical assessment costs and costs related to individual veteran s medical treatment, including pharmaceutical supplies, aids and appliances, and travel associated with medical appointments. Medical Treatment is paid on an ad hoc basis and is made up of three categories: Medical Treatment (excluding Australia), Australian Medical Treatment, and Aids and Appliances. Veterans' Pension (M75) Scope of Appropriation Provision of income support for ex-service people in a declared war or emergency who have either reached the qualifying age for New Zealand Superannuation and are on a 70% (or greater) War Disablement Pension, or are prevented from undertaking employment for a substantial period due to disability and who fulfill the New Zealand citizenship and residency requirements as set out in the War Pensions Act SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10

11 Expenses 2007/ / / / /12 ed Total Appropriation 161, , , , , ,083 Reasons for Change in Appropriation Just over half of the growth results from cost of living adjustments. Increased take-up of this pension accounts for the remainder. Conditions on Use of Appropriation Reference Conditions Veteran's Pensions paid in accordance with the criteria set out in section 70 of the War Pensions Act Veteran s Pension is payable to ex-service personnel who served in the armed forces in a declared war or emergency, and have either: reached the qualifying age for New Zealand Superannuation and qualify for a War Disablement Pension of at least 70%, or not reached the qualifying age but are prevented from working for a substantial period because of a disablement from any cause. Veteran s Pension is not income-tested but is taxable. The rates of payment are the same as for New Zealand Superannuation. The spouses of deceased Veteran s Pension recipients continue to receive it or may be awarded Veteran s Pension if the deceased veteran would have been entitled to receive it at their date of death. Current and Past Policy Initiatives Policy Initiative Year of First Impact 2007/08 ed 2008/ / / /12 Review of the Treatment of Overseas Pensions and Payment of New Zealand Superannuation and Veterans' Pension Overseas Setting New Zealand Superannuation and Veteran's Pension Rates at 66% of the Net Average Wage Single Rates of New Zealand Superannuation for Married People The extension of the period of time a person can continue to receive Veterans' Pension while they are overseas and working voluntarily for an aid agency, from 52 weeks to 156 weeks. The extension of eligibility for the single or single living alone rate of Veterans' Pension to all veterans' pensioners who have spouses or partners in long-term residential care 2008/ /07 1,952 1,900 1, / / / SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol

12 War Disablement Pensions (M75) Scope of Appropriation Provision to pay War Disablement Pensions to ex-service people who have a disability attributable to, or aggravated by service in a declared war or emergency at any time, or in routine service prior to 1 April 1974 as set out in the War Pensions Act This appropriation also covers Surviving Spouse Pensions as set out in the War Pensions Act 1954, the allowances set out under the War Pensions Act 1954 and the War Pensions Regulations Expenses 2007/ / / / /12 ed Total Appropriation 133, , , , , ,114 Reasons for Change in Appropriation Indexation of rates and the increase in average disability levels more than offsetting the fall in the number of recipients. Conditions on Use of Appropriation Reference War Disablement Pensions are paid in accordance with the criteria set out in the War Pensions Act 1954, the allowances set out under the War Pensions Act 1954, and the War Pensions Regulations Conditions A War Disablement Pension may be payable to: ex-service personnel whose disablement is attributable to, or has been aggravated by their service in a recognised war or emergency, and routine-service personnel whose disablement was caused by, or aggravated by, Service prior to the implementation of the Accident Compensation Act (now known as Injury Prevention, Rehabilitation, and Compensation Act 2001) on 1 April A War Disablement Pension may be received on its own or in conjunction with other social assistance or income. Weekly payments range from $9.10 for a 5% disablement to $ for a 100% disablement. An additional pension of up to 60% may be awarded to those already in receipt of a 100% pension in cases of severe disablement (up to a total pension payment of $320.34).Surviving Spouse Pension of $ per week may be payable to surviving spouses or surviving partners of ex-service personnel or routine-service personnel in certain circumstances. This pension is paid in addition to any other social assistance or income. There is also provision to pay specific concessions and allowances to veterans with certain disabilities, and educational bursaries to children of veterans. Educational bursary payments range from $ to $ per child, per year. 138 SOCIAL DEVELOPMENT AND HOUSING SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.10