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C20/2002 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  27 MAY 2002

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

Purpose of Instruction

The purpose of this Departmental Instruction is to provide information about the Pounds Sterling exchange rate variation exercise.

Introduction

Following the recent variation in foreign exchange rates, it is appropriate for DVA to apply a new exchange rate for income support pension assessment purposes.

New exchange rate A$2.6110

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.6860 to one Pound Sterling equals A$2.6110 (ie A$1 = ?0.3830).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 24 May 2002.

Date of effect
28 May 2002

Effective from 28 May 2002 the current exchange rate will change.

On pension payday 13 June 2002 (pay period 25) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 27 May 2002.

Continued on next page

Automatic superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed automatically.

Manual cases and MS cases

Cases with actions in frozen status will not be processed automatically.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 13 June 2002 – ie 28 May 2002.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will produce the cartridge and forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 3 June 2002.

Continued on next page


British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that Disability Pension converted to $A using the BRI exchange rate.  RA should be manually recalculated.  These cases can be extracted through AIS by each state.  If you have any problem please contact Andrew Purcell on the number below.

Note: If DP has already been assessed as income in determining Hardship cases it should not also be assessed as income for RA.

Contact officer

The Income Support Branch contact officer is:

Andrew Purcell           Telephone:   (02) 6289 4832

Roger Winzenberg
Branch Head
INCOME SUPPORT

27 May 2002


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

to

6 August 01

0.3803

2.6295

7 August 01

to

1 October 01

0.3701

2.7020

2 October 01

to

29 October 01

0.3430

2.9155

30 October 01

to

10 December 01

0.3588

2.7871

11 December 01

to

7 January 02

0.3709

2.6961

8 January 02

to

18 March 02

0.3612

2.7685

19 March 02

to

27 May 02

0.3723

2.6860

28 May 02

to

0.3830

2.6110