B21/1991 BRITISH RETIREMENT INCOME (BRI) - EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

DATE OF ISSUE:

BRITISH RETIREMENT INCOME (BRI) - EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

INTRODUCTION

1.In line with the amendments to the Veterans Entitlements Act Division 1AA concerning the regulating of Foreign Currency, a variation to pension rates is to be implemented.  The Legislation also states the currency rate will be expressed to four decimal places.  The advice letters to beneficiaries will contain the currency rate correct to four decimal places.

EFFECTIVE DATE

2.On payday 13 June 1991 the current exchange rate will change from One Pound Sterling equals $2.4576 to One Pound Sterling equals $A2.2336 being the average of the "on demand airmail buying rate" for the month of April 1991.  This is the same exchange rate as the Department of Social Security will be holding from 20 June 1991.

TIMETABLE

3.This exercise is scheduled for processing on Saturday 25 May 1991.  Schedules and advice letters will be despatched to Branch Offices on Monday 27 May.

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=$2.2336=0.9089

old exchange rate$2.4576

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 give 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.

OUTPUT

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.

NCC IMPLICATIONS

9.This exercise is scheduled for processing Saturday, 25 May 1991.  Benefits Applications Section will advise you closer to time of the run details.  A short advice letter will be required.

CONTACT OFFICER

10.The Benefits contact officers for this exercise will be

Glenys Bulters telephone(06) 289 6019 (Business Hours)

Ken Stewart(06) 282 4794 (After Hours).

DAVID MACKRELL

ASSISTANT SECRETARY

BENEFITS PLANNING & MANAGEMENT