B11/1993 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING

DATE OF ISSUE:  18 February 1993

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

INTRODUCTION

1.In line with the current administrative procedures for the determination of foreign exchange rates,  the Department of Social Security has set a new rate for the pound Sterling.

EFFECTIVE DATE

2.On payday 4 March 1993 the current exchange rate will change from One Pound Sterling equals $2.2297 to One Pound Sterling equals $2.1245 being the average of the "on demand airmail buying rate" for the two weeks to 11 February 1993.  This is the same exchange rate as the Department of Social Security will be holding from 25 February 1993.

TIMETABLE

3.This exercise is scheduled processing on Wednesday night, 17 February 1993.

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 = $2.1245 = 0.9528

old exchange rate$2.2297

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 find 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 for processing as ($PPBFORT) on Wednesday 17 February 1993.  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

Murray Chynoweth telephone              (06) 289 6799 (Business Hours)

Ric Mooretelephone              (06) 282 3913 (After Hours).

KAY GRIMSLEY

ASSISTANT SECRETARY

BENEFITS INCOME SUPPORT