B28/1991 ISSUE OF AUTOMATIC INDEXATION ADVICES TO SERVICE PENSION RECIPIENTS FOR THE INDEXATION ADVICES PROJECT PHASE II

DATE OF ISSUE:  11 June 1991

ISSUE OF AUTOMATIC INDEXATION ADVICES TO SERVICE PENSION RECIPIENTS FOR THE INDEXATION ADVICES PROJECT PHASE II

INTRODUCTION

This Instruction is to advise Branches on the implementation of the second phase of the indexation advices strategy.

2.Phase II involves the issue of indexation advices to pensioners affected by the indexation of the income and asset test "free" areas on 1 July 1991, ie. all service pensioners in receipt of less than maximum rate service pension.  Advices will contain full obligations, payment details and details of income and assets.

BACKGROUND

3.The background to the indexation advices strategy including its aims and objectives and overall implementation arrangements  is provided in DI B16/91 issued on 15/4/91.

CASE SELECTION AND ISSUE ARRANGEMENTS

4.The run for the selection of cases has been scheduled for the weekend of 22/23 June.  Printing will commence on 24 June 1991.  The effective payday for the indexation is 11 July 1991.

5.As in Phase I, joint advices will be issued for the majority of married and defacto cases.  However, blinded veterans and their spouses will each receive a separate advice.

6.The indexation advice letters will be dated the first working day following the selection run ie. 24 June 1991.  This will ensure that the letter date represents currency of information.

BRANCH PROCESSING - DAILY ADVICES

7.To ensure that the information contained in the indexation advices is current at the time of mailing, it will be necessary to withhold daily advice letters produced by Branch action in the Branches, from the cutoff ie. 18 June 1991, until after the indexation advices have been printed and mailed out.  Central Office will advise when postal action of the dailies may commence.

BRANCH PROCESSING - EFFECTIVE DATES FOR VARIATIONS AND REDUCTIONS

8.After 22 June 1991, payday 11 July 1991 should not be used as the effective dates for action to vary or continue service pension.  Use of this date may result in the production of an advice letter which contains conflicting information - eg. letter indicates an increase in pension, whilst payment details clearly show a reduction.  Should a variation or continuation in pension be necessary between 22 June 1991 and 11 July 1991, the payday of 25 July 1991 should be used.

DATE OF LAST FULL ADVICE

9.A date will automatically be recorded on the System of the date that the last full advice was sent.  It is expected to be visible to examiners on the IQ.PA screen.  This is to be confirmed.  This date will also enable the System to specify which type of advice is to be despatched in future indexation runs, ie. if a full advice was sent in July 1991, the next action would only produce an advice containing payment details and limited obligations and would refer to the previous full obligation advice.

MANUAL ACTION

10.An exception report will be produced for each state, the only cases that require manual action by Branches are those cases involving overseas residents.  With the exception of the Tasmanian Branch (which will process all New Zealand cases) this will only include a handful of cases.  Branches will be required to complete enveloping and mailing of the advice letter.

11.Letters will not be issued automatically to special register cases in Phase II.

SCHEDULES

12.Following a request from some Branch Offices for additional copies of schedules, a request has been made to Systems for multiple copies of schedules of service pensioners who have been issued with an Advice in Phase II.  These will be supplied to Branches following the selection run.

EVALUATION

15.Comprehensive statistical information was required to be recorded for Phase I in order to assess the effectiveness of the information contained in the advices and whether or not the attempt to minimise the impact of the exercises of Branches was successful.  It will not be necessary for this type of statistical information to be recorded for Phase II.  However, general feedback and comments will be sought in relation to the effectiveness of the overall automatic advices system following implementation of Phase II.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

June 1991