Fed: Some pensions to rise as system tweaked
17 Jan 2009 11:43 AM
CANBERRA, Jan 17 AAP - People on a part pension could see their payments rise after the federal government tweaked the system in response to the financial crisis.
The government has once again lowered the "deeming rate" - its estimate of how much pensioners will earn from their investments.
The deeming rate will drop from five per cent to four per cent, for pensioners with investments worth more than $41,000 for singles and $68,200 for couples.
The deeming rate for pensioners with smaller investments remains at three per cent.
The decision to lower the estimate of how much pensioners will earn from their investment will increase pension payments for some.
The decision takes effect from January 26.
Late last year the government cut deeming rates as the financial crisis started to bite.
