DI-06-2020 Indexation of British Official Public Service and Armed Forces Pensions

Indexation of British Official Public Service and Armed Forces Pensions

Amends DI No:	N/A
Replaces DI No:	N/A

Purpose	The purpose of this Departmental Instruction is to advise of processing arrangements for the automatic indexation of British Official Public Service and Armed Forces pensions (formerly Indexed BRI, code 09). The reason for the change of terminology was explained in DI C04/2004 British Income.
Increase in Public Service Pensions	The British Government has announced that British Public Service Pensions will rise in April 2020 by 1.7% in line with their Retail Price Index. The pensions affected are listed below and should be recorded on PIPS as foreign superannuation (British Official Public Service/Forces):  British Official Public Service Pension as listed at https://www.gov.uk/government/publications/public…  British Armed Forces pension (ie Royal Army, Royal Navy or Royal Air Force).
Date of effect	The date of effect to be used for the variation is Tuesday 7 April 2020, for payday 23 April 2020.
The conversion factor for this indexation is 1.017	The new amount of pounds sterling to be recorded will be calculated as follows: The variation percentage (1.7%) ----------------------------- + 1 = Conversion factor 100 The Australian dollar amount will then be reassessed accordingly. The conversion factor for this indexation is 1.017.
Date of processing run	The processing run for this exercise will take place on 6 April 2020.
Manual cases	Cases that are in investigation, submission or determination status at the time of the run will be frozen and listed for subsequent manual processing.
Advice Letters	An advice will be generated for all clients who have a variation to their rate of DVA pension payment because of the indexation exercise. All advices produced from this processing exercise will be printed as batch advices on printers in NSW. Please check advice schedules to reconcile Group Destination cases, and check all advices before they are sent to ensure they contain correct information.
Indexation of British war pensions	British war pensions (British DP) will also increase by 1.7% on 7 April 2020. A separate Departmental Instruction will be issued about the application of this increase to: British war pension in assessments of income support supplement, rent assistance and age pension; Empire Air Training Scheme (EATS) and other composite cases.
Indexation of British social security pension	British social security pensions will not be indexed automatically. See Part 10, Chapter 1, Section 5 of the CLIK Policy and Procedure Libraries for more information.
Contact officers	The Income Support contact officers for this exercise are Jennifer Payne (x470392) and Caitlin Frost (x483374)

Janice Silby

Assistant Secretary

Income Support

27 March 2020

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2020/di-06-2020-indexation-british-official-public-service-and-armed-forces-pensions