B14/1991 BRITISH PENSION INDEXATION

DATE OF ISSUE: 05 APRIL 1991

BRITISH PENSION INDEXATION

INTRODUCTION

1.From the 8 April 1991 the British Government, in line with their Retail Prices Index, will be applying a 10.9% increase to the National Insurance Benefits paid to their beneficiaries.  This increase affects the following pensioners paid by this Department:

.Service pensioners in receipt of British Department of  Social Security Pension who live in any country other than  Australia, Canada and New Zealand

.Service pensioners in receipt of a British Indexed Pension (i.e.  Navy, Teachers, etc) regardless of the country of  residence.

TIMETABLE

2.This exercise is now an automatic run and is scheduled for inclusion with the fortnightly processing that will take place on Thursday, 11 April 1991, with an effective date of 2 May 1991.

AUTOMATIC PROCESSING

3.This exercise will only update superannation code 09 (British Indexed Pension).

Note:Any British Indexed Pension cases incorrectly recorded under superannuation code 08 (British Retirement Income) or 99 (Miscellaneous), will need to be manually updated, and the code changed to 09 for future automatic updating.

OVERSEAS CASES

4.If a pensioner who is in receipt of British Department of Social Security Retirement pension is living in any country other than Australia, Canada or New Zealand, the 10.9% increase should be applied and the pension varied accordingly with an effective date of 2 May 1991.

5.Service Pensioners who receive British DSS pension and are holidaying in any country, with the exception of Canada and New Zealand, are eligible for the increase and should be registered under superannuation code 09 for the period of their holiday.  On their return to Australia these pensioners should be re-recorded as superannuation type 08.

6.Service Pensioners in receipt of a British Indexed Pension (i.e.  Navy, Teachers, Police, etc) will have their British pension increased regardless of the country of residence. These cases should all be currently recorded as super type 09 (British Indexed Pension).  All such pensions should be reassessed with an effective date of 2 May 1991.

STATISTICAL RECORDING

7.All reductions in pension payment for any cases processed manually can be credited to the Selective Review Program.

8.Please manually record and provide at the conclusion of the review:

.effective date for reductions if finalised after 2 May 1991

.the number of pensions reduced

.the average amount of the reduction

.the hours taken to process

.the ASO levels at which the work was undertaken.

Final figures should be sent to Paula Brown, Benefits Income Support Standards and Control Section, Central Office.

NCC IMPLICATIONS

9.This exercise is scheduled as part of the fortnightly processing to be conducted on Thursday 11 April 1991.  Benefits Applications Branch will provide you with appropriate details of the short advices to be produced, closer to the processing date.

CONTACT OFFICERS

10.The Benefits Contact Officers for this exercise are:

Paula Brown on Telephone 06 289 6436 for policy issues

Glenys Bulters on Telephone 06 289 6019 for any ADP problems.

DAVID MACKRELL

ASSISTANT SECRETARY

BENEFITS PLANNING & MANAGEMENT