C24/1997 INDEXATION OF BRITISH RETIREMENT INCOME (BRI) SUPERANNUATION TYPE CODE (09)

DATE OF ISSUE:  11 APRIL 1997

INDEXATION OF BRITISH RETIREMENT INCOME (BRI) SUPERANNUATION TYPE CODE (09)

INTRODUCTION

1.In April 1996 the British Government applied a 2.1% increase in line with their Retail Price Index to the National Insurance benefit paid to their beneficiaries.  The same increase applies to private British superannuation.  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, South Africa or New Zealand;

­service pensioners in receipt of a British Indexed pension (Superannuation Type Code 09) i.e. public service, navy, teachers etc., regardless of the country of residence.

EFFECTIVE DATES

Indexation

2.The 2.1% variation is to be effective from pay-day 24 April 1997.

3.The amount in Australian dollars of income recorded as British Retirement Income superannuation type 09 will be multiplied by applying a conversion factor of 1.021 to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Automatic Superannuation Processing Timetable

4.This exercise is scheduled for processing on Tuesday evening, 8 April 1997.

PRINTING AND DESPATCH OF ADVICES

5.Lane Print Group will be printing the advices and despatching them to the State Offices for manual distribution.  Advices produced for pensioners resident overseas will be separated and forwarded to the Tasmanian State Office for distribution.  Special Register cases will not have an advice produced, these cases will be listed on the exception report.  A full advice will be generated for any fringe benefit/change of treatment cases.

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 State Office action.

ADVICE LETTERS

7.An advice will be generated for those cases where a 'variation' in pension payment occurs as a result of the indexation exercise.  A standard one page advice containing the indexation information and payment information line advising pensioners of their fortnightly payment will be produced.  Where a joint advice is generated both the veteran and partner will each have a payment information line.  A copy of the advice to be produced is attached.

8.Before the advices are despatched from your State, a sample check should be carried out to ensure they contain the correct State Office address, signature block, payment information and the pensioner is a recipient of super code type 09.

OVERSEAS CASES

9.If a pensioner in receipt of British Department of Social Security Retirement pension is living in any country other then Australia, Canada, South Africa or New Zealand, the 2.1% increase should be applied and the service pension varied accordingly with an effective date of 24 April 1997.

10.If a service pensioner in receipt of a British DSS pension (Super Code 08) is holidaying outside Australia, in any country other than Canada or New Zealand, they are eligible for the increase.  The increase will be paid if the British DSS is aware of the pensioners whereabouts.  On their return to Australia these pensioners should be sent an income review to reassess their pension payment.  If the holiday was to England the pension may be increased to the level it would have been paid at if the pensioner had never left the UK.

11.Service pensioners in receipt of a British Indexed pension will have their British pension increased regardless of the country of residence.  These cases should all be recorded as super type 09 (British Indexed pension).  All such pensions should be reassessed with an effective date of 24 April 1997.

CONTACT OFFICER

12.The Income Support contact officers for this exercise will be:

Murray Chynoweth — Telephone:  (06) 289 6799 (Systems)

Premala Walsh — Telephone:  (06) 289 4737 (Policy).

MURRAY HARRISON

BRANCH HEAD

INCOME SUPPORT

     April 1997

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