Commonwealth Ombudsman Ron McLeod has announced that around 40 pensioners would be compensated for pensions not received because of inequities in the Social Security Act.

The Ombudsman’s office investigated complaints from a group of pensioners whose pensions were cancelled because they did not notify the Department of Social Security about their departure from Australia. Some were forced to repay their benefits.

The Ombudsman found that the pensions were unfairly cancelled, and Parliament amended the Social Security Act to allow greater flexibility for pensioners travelling overseas from 1 January 1995.

Despite these amendments, the Social Security Act did not allow retrospective payments for people whose pensions were cancelled before 1995.

Mr McLeod said: ‘The Prime Minister has agreed to make ex-gratia payments available to people whose pensions were cancelled.

‘Mr Howard’s decision is a good one for the pensioners and a good one for equity in public administration.

‘It is unfortunate that the pre 1995 legislation did not allow a proper degree of flexibility to those officials administering it,’ Mr McLeod said.

Before the Social Security Act was amended in 1995, any pensioner who left Australia for more than six months without advising DSS of their departure, would have lost their pension if they did not obtain a Departure Certificate from the Department.

Mr McLeod said inflexibility in the Departure Certificate provisions of the Social Security Act caused the cancellation of pensions without consideration of the personal circumstances of the people involved.

In one case, a couple whose return to Australia was delayed by war in Croatia, had their pensions cancelled because they were out of the country for more than six months.

People were further frustrated when they could not obtain a remedy for their loss!

In approving the ex-gratia payments, the Prime Minister was responding to recommendations made by former Ombudsman Philippa Smith.

Media Contact

Media 02 6276 3759
Email – Media@ombudsman.gov.au

Date of release: 27 February 1998