B29/1993 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON SERVICE PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

DATE OF ISSUE: 4 June 1993

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

INTRODUCTION

1.In line with the current administrative procedures for the determination of foreign exchange rates, the Secretary of the Department of Social Security has set a new rate for the Pound Sterling.

EFFECTIVE DATE

2.On payday 24 June 1993 the current exchange rate will change from One Pound Sterling equals $2.1308 to One Pound Sterling equals $2.2227 being the average of the "on demand airmail buying rate" for the two weeks to 2 June 1993.  This is the same exchange rate as the Department of Social Security will be holding from 17 June 1993.

TIMETABLE

3.This exercise is scheduled for processing on Tuesday night, 8 June 1993.

AUTOMATIC SUPERANNUATION PROCESSING

4.The amount recorded as super type 08 or 09 will be varied by applying a conversion factor which is calculated as follows:

new exchange rate = $2.2227      = 1.0431

old exchange rate      $2.1308

5.The amount in Australian Dollars of income recorded as British Retirement Income superannuation type 08 or 09 will be multiplied by the conversion factor to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

MANUAL CASES and MS CASES

6.Cases with actions in SB or PY status will not be processed.  These cases will be listed on the manual case listing for follow up action, and CMS/PIPS cases will be created automatically for Branch Office action.

REGULATION 45A PROCEDURES

7.The Assistant Secretary of both Benefits Planning and Management and IT Applications Branches in Central Office will attest to the correctness of the new exchange rate and the programs used to conduct the exercise.  Certificates in the terms of Finance Regulation 45A will be forwarded to the Authorising Officer in your Finance Branch.

ADVICE LETTERS

8.The pensioner advice letters will contain the correct pension rates and the new notional exchange rate correct to four decimal places.  The two BRI schedules which identify if a beneficiary received a long or short advice will be forwarded direct to your Branch from the NCC with the usual daily outputs.

9.A new paragraph explaining the period over which the exchange has been averaged is included in the advice letters.  Cases where super type 08 and 09 are paid together will no longer get two almost identical paragraphs in their advice letter.

10.The new introductory paragraph in the advices reads:

"Your income in pounds Sterling has increased as a result of exchange rate variations.  The exchange rate that now applies for Service Pension assessment purposes is $2.2227 equals one pound Sterling.  This rate has been calculated by averaging the on-demand airmail buying rate from the Commonwealth Bank of Australia for the two weeks ending on 2 June 1993."

MAIL OUT OF BULK ADVICES

11. R.L. Polk have been contracted to print and prepare the advices for progressive lodgement with Australia Post by Friday 18 June 1993.

NCC IMPLICATIONS

12.This exercise is scheduled for processing as ($PPBFORT) on Tuesday,

8 June 1993.  There may be some changes to Advices programs.  ITA, Benefits Applications Section will advise you direct of any special requirements.

13 — NCC is to print and despatch to Branch Offices all advices for overseas and Special Register cases and the cases that change treatment entitlement.

EXCHANGE RATES SINCE APRIL 1987

14.At attachment A is a schedule of exchange rates since 23 April 1987 which has been included for your convenience.  In the first six months of 1990 there were some incorrect rates published which may account for discrepancies in lists already in your office.  We believe these rates to be those specified in the Legislation applying at the time and should be used for any future action.

CONTACT OFFICER

15.The Benefits contact officers for this exercise will be:

Murray Chynoweth Telephone  (06) 289 6799 (Business Hours)

Mobile Phone 018 487 489

Ric Moore    Telephone  (06) 289 4739 (Policy).

HARRY STEPHEN

ASSISTANT SECRETARY

BENEFITS INCOME SUPPORT

ATTACHMENT A

POUND STERLING EXCHANGE RATES

Foreign exchange periodExchange rate

£$

23 April 87 — to — 24 Feb 88 — 2.25

25 Feb 88 — to — 29 Jun 88 — 2.50

30 Jun 88 — to — 24 Aug 88 — 2.22

25 Aug 88 — to — 22 Feb 89 — 2.10

23 Feb 89 — to — 22 March 89 — 2.04

23 March 89 — to — 5 April 89 — 1.92

6 Apr 89 — to — 18 Oct 89 — 2.08

19 Oct 89 — to — 21 March 90 — 2.00

22 March 90 — to — 17 April 90 — 2.22

18 April 90 — to — 27 June 90 — 0.4513 — 2.2156

28 June 90 — to — 19 Sept. 90 — 0.4575 — 2.1858

20 Sept. 90 — to — 12 Dec. 90 — 0.4423 — 2.2608

13 Dec. 90 — to — 19 March 91 — 0.4165 — 2.4010

20 March 91 — to — 12 June 91 — 0.4069 — 2.4576

13 June 91 — to — 19 Sept. 91 — 0.4477 — 2.2336

20 Sept. 91 — to — 25 Dec. 91 — 0.4720 — 2.1186

26 Dec. 91 — to — 19 March 92 — 0.4643 — 2.1538

20 March 92 — to — 24 June 92 — 0.4159 — 2.4044

25 June 92 — to — 19 Sept. 92 — 0.4383 — 2.2815

20 Sept. 92 — to — 25 Nov. 92 — 0.3914 — 2.5549

26 Nov. 92 — to — 3 March 93 — 0.4485 — 2.2297

4 March 93 — to — 14 April 93 — 0.4707 — 2.1245

15 April 93 — to — 12 May 93 — 0.4910 — 2.0367

13 May 93 — to — 23 June 93 — 0.4693 — 2.1308

24 June 93 — to — 0.4499 — 2.2227