B41/1990 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

DATE OF ISSUE:  09 NOVEMBER 1990

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

Introduction

In line with the amendments to the Veteran's 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.  However on the pensioner advices the currency rate will be expressed in dollars and cents.  No rounding to the nearest cent will take place.

Effective Date

2.On payday 13 December 1990 the current exchange rate will change from 1 Pound Sterling equals $A2.615 to 1 Pound Sterling equals $A2.4081, being the average of the "on demand airmail buying rate" for the month of October1990.

Timetable

3.The various computer runs necessary for this exercise have been included in the fortnightly processing scheduled for Thursday 22 November 1990.

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=$2.4081              =              1.0648 old exchange rate

$2.2615

5.The amount in $A of income recorded as British Retirement Income super-type 08 or 09 will be multiplied by the conversion factor to give the new rate of super. Pension will then be reassessed accordingly.

Manual Listings

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 procesing.

Regulation 45A Procedures

7.The Assistant Secretary of both Benefits Planning and Management and Corporate Development Branches at 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 together with the schedule which identifies cases with fringe benefit changes will be forwarded direct to your Branch from the NCC with the usual daily outputs.

Contact Officer

11.  The contact officer at Central Office for this exercise will be GLENYS BULTERS telephone (06) 289 6019.

DAVID HOLLAWAY

ACTING ASSISTANT SECRETARY

BENEFITS PLANNING & MANAGEMENT