B42/1991 MANAGED INVESTMENTS - FORTNIGHTLY AUTOMATIC PROCESSING

DATE OF ISSUE

MANAGED INVESTMENTS - FORTNIGHTLY AUTOMATIC PROCESSING

The purpose of this instruction is to outline the arrangements related to the implementation of the initial automated fortnightly processing run for managed investments for 1991/92.

Introduction

2.The primary objectives and operational aspects of the Managed Investment System's (MINVS) capability to automatically reassess, via fortnightly runs, Service Pensions where managed investments are held in a veteran's financial record and data relating to those investments alters, were outlined in DI B15/90 and remain broadly as stated.

3.During 1990/91, fortnightly MI runs were only run intermittently due largely to some system difficulties which centred around the generation of an unnecessarily high number of manual cases. Generally these manual cases were generated as a result of product cross-referencing (including product closures) in the System being inoperative, thereby forcing the production of manual cases.

4.However, at the Investment Policy Officer's Conference in May 1991 a firm agreement was reached between Central Office and the IPO's that, subject to certain modifications being made to the System, fortnightly MI runs would be undertaken on a regular basis during the 1991/92 financial year. The modifications which were called for were principally aimed at reducing the quantity of the above-mentioned manual actions and manual arrears cases generated by the System upon the initiation of a fortnightly run.

5.Enhancements have now been made to the System to prevent the generation of the above-mentioned manual cases. Manual cases which are now generated by the System should basically be for genuine manual arrears cases resulting from MLI (Market Linked Investment) percentage return adjustment.

Schedule for initial fortnightly managed investment run

6.The initial fortnightly run for the MINVS for 1991/92 is scheduled for 29 August 1991. The manual processing cut-off date for this run has been set at COB 10 September ie., 8 working days after run initiation.

Schedule for fortnightly managed investment runs subsequent to initial run

7.At this stage further MINVS runs have been scheduled as follows:

MINVS RUN DATE — MANUAL PROCESSING CUT-OFF DATE

26 September 1991 — COB 8 October 1991

10 October 1991 — COB 22 October

Monitoring of processing for initial managed investment run & impact on subsequent runs

8.It is expected that the first three to four MINVS fortnightly runs will generate an unusually high workload of manual arrears cases. This is due to the fact that the System has not been run for some time (up to 6 months in some States) and that there will therefore have been a considerable number of MLI percentage return adjustments during this period. It will therefore be necessary for all States to carefully monitor the rate at which the manual arrears cases generated as a result of the first run are processed and finalised. This information should be passed on to Martin Dibb (Income Support, Central Office) within the first five processing days of the first run to allow an assessment as to whether all cases can be finalised before the cut-off date of 10 September and to assess if the 26 September run should be postponed.

Date of effect for manual arrears processing

9.The date of effect for manual arrears cases is generally the date on which the MLI percentage return adjustment occurred. Please see Attachment 1 to this Instruction for further detail.

Processing guide-lines

10.At Attachment 1 please find a guide to assist staff processing cases listed on the manual case schedule generated for MINVS fortnightly runs.

System acronym change

11.Please note that the Managed Investment System should be referred to as MINVS if abbreviated to an acronym. It has been noted that the previously used acronym "MIS" duplicated the acronym for the TSO resident Management Information System and was therefore likely to cause confusion amongst officers when being referred to in conversation or correspondence.

Contact officer

12.The contact officer for further general enquiries is Martin Dibb, Income Support, telephone (06) 2896439. ADP related enquiries should be directed to Glenys Bulters, Benefits ADP, telephone (06) 2896019

FELICITY BARR

A/g NATIONAL PROGRAM DIRECTOR (BENEFITS)

ATTACHMENT 1

MANAGED INVESTMENT FORTNIGHTLY AUTO RUNS

- MANUAL SCHEDULE PROCESSING GUIDE

Note: this guide should be read in conjunction with the sample manual schedule printout at Attachment 2.

1.To locate the product concerned

Use the "SEG VAL" on the printout, as it will tell you which product has caused the case to be listed for manual action eg., "SEG VAL 03" indicates that the 3rd MI recorded on the MI screen is the cause of the manual case generation.

2. Effective dates

a) MLI % changes (ie., Service Pension increases) - use the effective date shown on the II screen next to the MLI % rate change.

b) Other SP increases - use the payday after the week that the auto run was scheduled for.

c) SP reductions - use the CRD current reduction date.

3. Reasons printed on schedules - action required

a) Performance

.Locate the product on the MI screen and look it up on II.

.Check the change in MLI % and note the effective date for arrears.

.The file will also be required whilst processing a performance action as these cases involve MLI rates which have been reduced on appeal and the payment of arrears.

.Be sure to refresh all other MI's after processing the on/off rates for arrears.

ATTACHMENT 1 - continued

b) Product closed

.Locate product concerned on MI screen.

.Note that the product should only show as being closed due to redemption of investment by client.

.Contact the client and ascertain how the funds resulting from redemption of the product were disposed of.

.Check if investment was assessable upon realisation or not. If yes, calculate profit.

.Finally, refresh all other MI's on the MI screen using "C" for change.

c) Fees ceasing

.Locate the product with the fee anniversary due.

.Delete the applicable fees on the MI screen and refresh all other MI's on the screen (using "C" for change).

d) Product type code change

.Seek advice from your Investment Policy Officer (IPO) for specific instructions on how to handle the change in product classification.

.Be sure to use the file in these cases and to refresh all other MI's during the action.

e) Required value missing

.Locate the product on the MI screen and identify which piece of data is missing. The most common problem is a buyback noted on the screen with no units showing or vice versa.

.Correct the error and refresh all other MI's.

!If you are in doubt or unclear on any matter relating to the processing of manual schedule MI cases, seek advice from your IPO.

ATTACHMENT 2

MANUAL SCHEDULE SAMPLE