B30/1990 STATUTORY PENSION INCREASE 20 SEPTEMBER 1990 ADP PROCESSING

DATE OF ISSUE: 8 AUGUST 1990

STATUTORY PENSION INCREASE 20 SEPTEMBER 1990 ADP PROCESSING

1.INTRODUCTION

1.1 — Changes for the 20 September 1990 Statutory Increase involve variations to the following pension types:

.Disability Pensions

.War Widows' pensions

.AMS Pensions under (old) Reg. 32, 34, 35AA

.Service Pensions and Allowances, the fringe benefit income limits

.British Retirement Income notional exchange rate (a separate instruction will be issued).

2.GENERAL OPERATIONAL OUTLINE

2.1 — The processing for pension rate changes will be divided into groups of those cases which will be processed automatically and those cases which will require manual action.

2.2 — The ADP and associated Branch Office processing is discussed in the following sections. A broad timetable of events and Scheduling dates are included at Attachment 1.

2.3 — For the "DISABILITY PENSION AND ALLOWANCES PROCESSING" automatic increases to pension rates will be effected where possible using programs which apply the new rates of pension and allowances to the PMF and CDB.

2.4 — For the "SERVICE PENSION PROCESSING" income/assets details and personal assessment particulars held on the CDB will be referenced for the automatic reassessment of pension and preparation of variation transactions for update of the PMF.  Changes to other elements of assessment e.g. increase in the fringe benefits limits, will also be effected automatically.

3.SPECIAL FEATURES AND SUGGESTIONS

3.1Rates Charts

The new rates charts effective 20 September 1990 will be issued shortly.  You will notice on the Service Pensions - Income Test chart that a Taxable Amount for Immediate Annuities effective from 1 July 1990 is now included.

3.2Manual DP Listings

Manual DP cases will be listed on the same weekend as the automatic disability pension and service pension updates.  Manual DP cases require processing through the on-line pension processing system (IDPS/PIPS).  This action cannot be completed until after the cut-off for payday 6 September, AND the new rates are put into production.

3.3Fringe Benefits & Treatment Entitlement Cards

Fringe benefit income limits will increase and it is expected that some pensioners will become eligible for fringe benefits.  Issue of health cards and recall of pharmaceutical cards will be processed through the normal batch system following the SI.

3.4PMF Update/On-line System

Processing will be undertaken over the weekend 1/2 September 1990.  THE LATEST AVAILABLE PMF UPDATE WILL BE FRIDAY 31 AUGUST, at 5.00pm SYDNEY TIME.  Neither the on-line Pension Processing system (IDPS/PIPS) nor the Pension Payment update facility will be available over the weekend.

3.5Pre Increase Action

It is suggested that the following steps be undertaken prior to computer runs for the SI to help processing progress as smoothly as possible:

.minimise the number of cases in "frozen" status (SB or PY status);

.arrange an early cut-off (say one week) for processing of cases requiring "MS" submissions by pension examiners to allow time for those cases to be received and actioned by Pension Payments;

.clear outstanding "MS" cases;

.resolve any SP Compare reconciliation edits;

.arrange a cut-off date one or two days before automatic processing commences for final automatic authorities to Pension Payments;

3.6Trial Assessment Facility/War Pension Code File

The new Trial Assessment facility with the new SI rates and other assessment changes will be available by 20 August 1990.  The War Pension Code File will be available with the new SI rates from 3 September 1990.

3.7Limitation Cases

Cases for which limitations are in force will have pension increased automatically, but the limitation amount will not be adjusted.  Identification of these cases and adjustment to the limitation amount must be arranged locally.

3.8Processing Problems

Should any problems arise with either the automatic processing system or the procedures outlined, they should be advised to Central Office immediately.  The contact officer at Central Office is Glenys Bulters on telephone (06) 289-6019.

3.9PNG Pension Rates (Queensland Only)

The PNG pension rates effective from 20 September are currently unavailable.  These rates will be distributed shortly.

4.PENSION RATE CHANGES - DISABILITY PENSIONS AND/OR ALLOWANCES PROCESSING

FULL RATE CODE WITH LIMITATION

4.1 — Increases to rates of disability pensions and associated allowances, as well as certain AMS pensions and war widows' pensions, will be processed in the following three stages:

.Rates of disability pensions and allowances, war widows' pensions and certain AMS pensions will be increased automatically, except where payment is recorded under a miscellaneous code.

.Cases requiring manual processing will be selected and listed.

.Cases requiring manual processing will be examined and updated through IDPS/PIPS before cut-off for payday 20 September.

4.2Action Schedules

Action schedules of DP and British SI cases requiring manual examination and variation by examiners will be produced for the following action groups:

Group ContentsReference Number

.Composite Cases — 600

.EATS Cases — 500

.Miscellaneous code disability — 400

pension.  Some of these cases

may include an SP component;

but the DP ONLY should be adjusted.

.Miscellaneous  widows'  pension — 300

.Disability pension cases with a — 200

suspension segment and AMS

cases with a suspension segment.

Some of these cases may include

an SP component, but the suspension

and/or DP segments only should be adjusted.

NOTE:A record may belong to more than one group.  Where this happens, the case will normally be listed once with the group of the the highest reference number.

4.3General Procedure for These Manual Adjustments

Action schedules will have all disability pension segments shown at pre-increase rates.  Manual action by examiners will comprise entering the new rate in the "new fortnightly" column and where necessary, amending the pension category and/or code of the relevant segment.  If any component of a DP pension segment is to be adjusted, processing through the Interim DP system (IDPS) will be required.  Processing of the case will be as follows:

.use Classification Pension (CP) to register a payment change action;

.access Assessment Control (AC) to create an action assessment.  No effective date is required for a DP only case;

.update the new disability pension details via the Disability Pension (DP) screen;

.complete Advices (AD) screen;

.submit (SU) the case to MS/5O, write the consecutive number onto the schedule and forward to the Delegate for determination.

.For AMS cases, only update of schedules is required.

4.4Keyfast Description

MS (multiple segment) and manual transactions should be transmitted to the Computer Centre in the normal pension payment daily stream i.e. keyfast description $ PENSIO, prior to the cut-off for payday 20 September.

4.5Parameter Cards

Parameter cards and rate tables have been prepared at Central Office to effect the automatic updating of "DISABILITY PENSION AND ALLOWANCES" cases and list those requiring manual action.  These cards will be input to the computer by Central Office.

5.PENSION RATE CHANGES - SERVICE PENSION PROCESSING

5.1 — The increases to service pension and allowances will be effected automatically on the PMF wherever possible by program APPBAL.  APPBAL will detect cases from the CDB and PMF which cannot be processed automatically, and produce reports and schedules to enable manual reassessment of service pension for subsequent updating of the PMF.  These reports have been improved and rationalised for this exercise.  It is hoped that they will be easier to use.  APPBAL will also generate pension payment transactions for automatically processable cases.  Cases listed for manual action will need to be processed through PIPS before cut-off for payday 20 September.

5.2Processing of automatic cases - 31 August/1 September

Program APPBAL will generate Pension Payment transactions updating the rates of service pension and allowances for cases recorded on the CDB with an automatic method of assessment by:

.obtaining income/asset details and assessment information from the CDB;

.reassessing the service pension and allowances using the new SI rates and elements of assessment; and

.generating transactions for update of the PMF in respect of rate variations, changes in payment category and/or pension code.              APPBAL does not update the effective date, so that on display of the case, the previous effective date will be shown (ie not 20 September 1990).

5.3Outputs From Programs APPBAL

The cases which cannot be processed automatically will be reported on schedules for manual action.  Manual cases are:

.Frozen actions (i.e. cases in 'PY' or 'SB' Status);

.PMF/CDB incompatible cases;

.Manual methods of assessment (excluding Working Rule B);

.Cases suspended on the PMF;

.Manual disability pension cases;

.Assessment errors.

Other schedules which may be produced are:

.Last SI not processed;

.Old SI process codes deleted;

.Manual arrears cases;

.Data base errors detected;

.Transaction generation error schedule.

5.4Processing of manual cases: 3 September to cut-off for payday 20 September 1990.

The processing of manual cases should be done in the above period and cases are to be processed through IDPS/PIPS.  Cases listed for manual action should be reassessed using the SI rates, updated through an action record, a D2650 produced, or a D408 or other coding sheet produced to effect the PMF variation.  If coding is done on an action schedule, the consecutive number for the IDPS/PIPS action should be noted on the schedule.

5.5Frozen Actions - when cases in 'PY' or 'SB' status are encountered by the SI program, update is prohibited because the record is 'frozen'.  The cases need to be 'unfrozen' and re-processed as follows:

.return case to 'RI' status (by using 'Cancel Determination' and 'Cancel Submission' as appropriate)

.re-process case using the SI as the last variation (if effective date is prior to the SI date enter arrears line for effective date)

.submit to 'MS' or 'DA' as appropriate and prepare D408 in 'MS' cases.

.determine case as per normal.

5.6PMF/CDB incompatible cases - cases will need to be investigated to determine the cause of the discrepancy, then the CDB or PMF corrected as necessary before the SI action can be processed.  The discrepancies will normally relate to people/suffixes on the CDB and PMF.

5.7Manual Methods of Assessment - cases need to be manually re-assessed and processed through the system as normal.  Where a case involves a suspension or a manual DP component, it should be processed through an MS submission and a D408 raised to record the manual coding.

5.8Cases Suspended on the PMF - where a service pension, "Other" or Total suspension occurs on the PMF, the SP rate and suspension rate should be re-assessed, the case processed through an 'MS' submission and the rates varied as necessary.  The schedule is produced in 'PMF transaction' format and should be used to code the adjustments.  The schedules should be endorsed with the 'MS' consecutive number generated by the system, and be signed by the Delegate - this obviates the need to prepare a D408 for these cases.

5.9Manual DP Recorded on the CDB - this schedule lists in 'PMF transaction' format cases with the following 'DP codes' on the CDB.

.EATS

.COMP (Composite/Proviso 'c')

.DIV 10 (Members of the Defence Force),

.MAN, MISC, CONVERSION DATA  (Note: these are no longer valid codes, but may still exist if the case has not been correctly coded following Conversion).

The DP should be examined, the new rates entered through the DPEN format, and the case submitted through 'MS'.Rates of both SP and DP should be varied on the schedule.

The schedules should be endorsed with the "MS" consecutive number generated by the system and signed by the Delegate - this obviates the need to produce a D408 for these cases.

5.10Assessment Errors - the assessment routine will produce information messages as an indication that certain action should be taken as a result of the re-assessment. These cases should be examined and modified as necessary, as well as processing the SI increase.

Note -Where "QA" data exists on a case which is processed manually, care should be taken to ensure that the assets data is recorded correctly because the "QA" data will not be copied into the action assessment.

6.INFORMATION/SUPPLEMENTARY PROCESSING SCHEDULES

6.1 — A number of conditions may exist on the CDB which require additional investigation beyond the normal SI processing.  The cases listed will already be "autoprocessed" or will appear for action on the schedules.  The conditions are detailed below:

.Last SI not processed - the case was not processed in the last SI that effected the case.  Check the case to ensure that appropriate A/L or SI action was taken.

.Old SI process codes deleted - before any SI processing takes place, any old SI process code (S183) will be deleted.  Action on these will depend on the reason the old process exists, but most will not require any corrective action.

.Manual arrears cases - cases where the current effective date is in advance of the SI date.  These cases need to be examined to ensure that any adjustment for the period between the SI date and the current effective date is made.

.Data Base Error detected - these cases will 'fail' SI processing, and should be referred immediately to ADP for action.

.Transaction Generation Errors - the equivalent of Interface errors in normal daily production.  Corrective action is the same as for Interface errors.

6.2 — Service pension cases submitted to 'MS' should be transmitted to the computer centre via the normal pension payment daily stream.

7.British Retirement Income Processing

7.1 — A separate instruction will be issued shortly advising the new notional exchange rate.

7.2 — The new Section 37AA of the Legislation requires that a BRI exercise be conducted forthe same effective date as the SI.  As the SI is combined with a BRI exercise some cases will have fringe benefit changes as a result of the SI and further changes as a result of the BRI run.  In certain circumstances, this could invalidate the automatic payment advices and inserts (PHB/PBC cards or TRC vouchers) from both the SI and BRI exercises.  The following matrix gives details on how to action the affected cases:

7.3 — Two additional schedules will be printed to assist in identifying the BRI affected cases.  These schedules will have the following information.

.Schedule A: ALL cases with Fringe Benefit Period of Grace that have British Retirement Income (BRI) before this exercise is commenced.  Details will include file number, name, address and the end date of the Period of Grace.

.Schedule B:  All BRI cases with a change in Fringe Benefits eligibility resulting from the General Service Pension increase.  Details will include file number, name, address and FB eligibility change details.

Note:The usual BRI schedule listing all fringe benefits changes will be p;rinted after both the SI and BRI runs are completed.

7.4 — The following notes will assist in identifying the affected cases as detailed in the above matrix:

Case 1(a) - Not eligible for Fringe Benefits before/after processing

This case will not appear on any schedule.

Case 1(b) - Not eligible for Fringe Benefits before, after processing is now eligible

This case will be listed on schedule B as a FB gain

Case 1(c) - Not eligible for Fringe Benefits before, after processing has FB Period of Grace.

This case will be listed on Schedule B as a FB gain and the normal BRI Fringe Benefit Changes schedule as a FB grace on.

Case 2(a) - Fringe Benefits Period of Grace before, after processing has FB Period of Grace with the same end date.

This case will be listed on Schedule A.  Check that the system shows the "old" period of Grace end date.

Case 2(b) - Fringe Benefits Period of Grace before, after processing has Fringe Benefits with no Period of Grace.

This case will be listed on Schedule A and Schedule B as a FB grace off.

Case 2(c) - Fringe Benefits Period of Grace before, after processing has FB Period of Grace with a different end date.

This case will be listed on Schedule A, on Schedule B as a FB grace off and the normal BRI Fringe Benefit Changes schedule as a FB grace on.

Case 3(a) - Eligible for Fringe Benefits before, after processingis still eligible.

This case will not be listed on any Schedule.

Case 3(b) - Eligible for Fringe Benefits before, after processing has FB Period of Grace.

This case will be listed on the normal BRI Fringe Benefit Changes schedule as a FB grace on.

8.ADVICES

In most cases, processing BRI after the SI rune will ensure the automatic advices have the correct fringe benefit and pension details.  However, culling of the automatic advices and inserts in line with matrix outlined in paragraph 7 will be required.

DAVID HOLLAWAY

ACTING ASSISTANT SECRETARY

PLANNING & MANAGEMENT

ATTACHMENT 1

STATUTORY INCREASE - 20 SEPTEMBER 1990

TIMETABLE OF EVENTS - GENERAL

20 August 1990 — Trial assessment with the new rates will be available.

1 September 1990 — Updating of PMF for disability pension and AMS cases which               can be processed automatically.

1 September 1990 — Reassessment for all CDB records where MOA is               "automatic".

1 September 1990 — Automatic update of service pension segments on the PMF               except for those cases listed in part 5.3 of these procedures.

1 September 1990 — Production of manual schedules for disability pension and               allowances and war widows' requiring examination.

1 September 1990 — Reconciliation run on all variations to either the PMF or               CDB.

From 3 September — Examiner action on manual SP and DP schedules. to cut-off               for payday 20 September 1990.

PLEASE NOTE: BRI EXERCISE MUST BE RUN AFTER THE SI.

PROCESSING SCHEDULE

The Benefits Applications Branch will provide the NCC with a detailed processing schedule.

The Benefits contact officer (for the NCC only) is

RIC MOORE(06) 289 6398 (BH)

(06) 282 3913 (AH)