B25/1991 ANNUAL ASSETS REVIEW PROCESSING

DATE OF ISSUE: 31 May 1991

ANNUAL ASSETS REVIEW PROCESSING

Departmental Instruction B05/91 stated that an effective date of 13 June 1991 was to be used for any asset-tested case where the annual assets review will result in a reduction in pension.

2.As previously advised, the effective date for reductions resulting from the Asset review exercise is now 11 July 1991.

3.It has now become apparent that the new effective date for Assets Test reductions creates a problem with the July issue of indexation/obligation advices to all less than maximum rate pensioners.  If the assets cases are submitted after the advices are produced the pensioner will receive two full advice letters for payday 13 July, neither of which will be correct.

EFFECTIVE DATES

4.All asset reduction cases are to be submitted prior to the application of the new BAL rates to the system (currently scheduled for 19 June).  Cases are to be submitted for an advance payday of 11 July (ie payday code 531), and preferably after the BRI/Deeming run on 25 May.  The automatic daily advice should be suppressed on submission for these cases only.

5.Note that assets cases resulting in a cancellation still cannot be submitted until after the new rates are on the system as the new BAL may be sufficient to keep them in payment.

ADVICES

6.The indexation advice will include a specific paragraph for asset-tested cases referring to the new rate being the result of a review of their assets as well as of the indexation of BAL.  Systems are presently investigating the possibility of identifying those cases which are reduced as a result of their assets increasing and further refining the advice paragraph for these cases.

7.The contact officer for the "assets" reviews will be Ann Molloy on telephone (06) 289 6440

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS