----- Original Message ----- From: Robert & Dianne

To: The Hon Danna Vale Member for Hughes Minister for Veterans Affairs

Sent: Thursday, March 14, 2002 7:51 AM

Subject: Re: VA14 Tuesday 12 March 2002 VETERANS' PENSIONS RISE

Minister

Can you explain the following results and as a consequence of these calculation why we need an enquiry to stop the erosion of the TPI Special Rate.

These calculations took approx. 45 Minutes (including the typing of this email.

Guys,

Anyone who has any doubts that they are not getting poorer through the erosion of the Special Rate should look at these simple figures.

They were supplied by Derek

Cheyenne

Income In Service Pension and Special Rate

Difference $11.16 (Rounded off to $11.20)

These calculations are per fortnight.

As can be seen by this simple calculation of the comparison of a correctly indexed pension and an incorrectly indexed Superanuation.

Based on this calculation and assuming the same increase in MTAWE and CPI during the life of this parliament the Government in the Department of Veterans Affairs will save $4.35 per week for every person receiving the TPI special rate compensation.

So the progression would be

Mar 2002 saving $4.35 per week per person

Sep 2002 saving now $8.70 per week per person

Mar 2003 savings now $13.05 per week per person

Sep 2003 savings now $17.40 per week per person

Mar 2004 savings now $21.75 per week per person

Sep 2004 savings now $26.10 per week per person

The latest Numbers of those receiving the TPI special rate that I have are from Feb 2002 so I will use this figure in the calculation. This will use the assumption that they remain static as those who die are replaced by those being granted TPI special Rate. This number is 25,238.

So over the life of this the 40th parliament the savings to your Department (Government) would be $59,942,733.80.

This is a copy of the calculations