B12/1990 BRITISH PENSION INDEXATION

DATE OF ISSUE:  27 March 1990

BRITISH PENSION INDEXATION

Introduction

From 9 April 1990 the British Government, in line with their Retail Prices Index, will be applying a 7.6% increase to the National Insurance Benefits paid by them.  This increase affects two categories of pensioners paid by this Department:

a)Service pensioners in receipt of British Department of Social Security Pension who live in any country other than Australia, Canada, or New Zealand, and

b)Service pensioners in receipt of a British Indexed Pension (ie Navy, Teachers etc) regardless of the country of residence.

Method of Processing

2.In order to reassess these pensions it will be necessary to examine all cases with superannuation payments recorded under type 08 (British Retirement Income) or 99 (Indexed Miscellaneous Superannuation).

3.Where a pensioner with a British Department of Social Security Retirement pension is living in any country other than Australia, Canada or New Zealand, the 7.6% increase should be applied and the pension varied accordingly with an effective date of the first convenient payday after 9 April 1990.  The pension should then be recorded as superannuation type 09 (British Indexed Pension).  Any case recorded as superannuation type 09 can be auto increased next year.

4.Please note that Service pensioners who receive British Department of Social Security pension and are holidaying in any country, with the exception of Canada and New Zealand, are eligible for the increase and should be registered as in receipt of 09 superannuation type for the period of their holiday.  On their return to Australia these pensioners should be re-registered as superannuation type 08.

5.Service Pensioners in receipt of a British Indexed Pension (ie Navy, Teachers, Police etc) will have their British pension increased regardless of the country of residence.  These pensions may currently be recorded as either 08 or 99.  All such pensions should be reassessed with an effective date of the first convenient payday after 9 April 1990 and re-recorded as 09 (British Indexed Pension).

Statistical Recording

6.All reductions in pension payments from these cases can be credited to the Selective Review Program but in order to do this it will be necessary for you to keep manual statistics.

7.Please record and provide at the conclusion of the review:

.the number of pensions reduced,

.the average amount of the reduction,

.the hours taken to process, and

.the ASO levels at which the work was undertaken.

Final figures should be sent to Martin Dibb, Selective Review Manager, Benefits Income Support Standards and Control, 68 Dundas Court Phillip.

7.The Central Office contact officers for this exercise are Jeanette Ricketts on telephone (06) 282 5196, and for technical or ADP problems Ric Moore on telephone (06) 282 5494.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS