B09/1991 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

DATE OF ISSUE: 20 FEBRUARY 1991

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 4 April 1991 the current exchange rate will change from One Pound Sterling equals $2.4010 to One Pound Sterling equals $A2.4578 being the average of the "on demand airmail buying rate" for the month of January 1991.  This is the same exchange rate as the Department of Social Security will be holding from 28 March 1991.

Timetable

3.This exercise is scheduled for inclusion with the fortnightly processing that will take place on Thursday night, 14 March 1991 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=$2.4578=1.0237

old exchange rate$2.4010

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.

Note: Any beneficiary who received an advice as a result of the Deeming/SI exercise and who also have BRI, were notified in the SI advice that a new notional exchange rate for BRI would be effective from 4 April 1991.

NCC Implications

9.This exercise is scheduled as part of the fortnightly processing ($PPBFORT) for Thursday, 14 March 1991.  There may be some changes to Advices programs.  Benefits Applications Branch will advise you direct of any special requirements.

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).

DON FAGET

ACTING ASSISTANT SECRETARY

BENEFITS PLANNING & MANAGEMENT