B20/1992 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

DATE OF ISSUE: 8 JUNE 1992

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 Part 3 Division 9 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.

EFFECTIVE DATE

2.On payday 25 June 1992 the current exchange rate will change from One Pound Sterling equals $2.4044 to One Pound Sterling equals $2.2815 being the average of the "on demand airmail buying rate" for the month of April 1991.  This is the same exchange rate as the Department of Social Security will be holding from 18 June 1992.

TIMETABLE

3.This exercise is scheduled for inclusion with the fortnightly processing that will take place on Thursday night, 4 June 1992.

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=$2.2815 = 0.9489

old exchange rate$2.4044

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 five 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.

NCC IMPLICATIONS

9.This exercise is scheduled as part of the fortnightly processing ($PPBFORT) for Thursday, 4 June 1992.  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

TRACEY CUNNINGHAMtelephone(06) 289 6398 (Business Hours)

KEN STEWARTtelephone(06) 2824794 (After Hours).

DAVID MACKRELL

ASSISTANT SECRETARY

BENEFITS PLANNING AND MANAGEMENT