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B07/1990 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING
DATE OF ISSUE: 22 February 1990
BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING
The Department of Social Security has made a variation to the exchange rate to be applied to British Retirement Income for conversion to Australian Dollars when making Service Pension reassessments.
2.On payday 22 March 1990 the current agreed exchange rate will change from 1 Pound Sterling equals $A2.00 to 1 Pound Sterling equals $A2.22.
3.The various computer runs necessary for this exercise will be made on the 10 March 1990. A processing time table is at Attachment A.
Automatic Superannuation Processing
4.The strategy for adjusting the exchange rate to be applied to BRI cases will be similar to the superannuation processing exercise. The super select (APPBSSEL) program will be run to select all cases with super type 08 (BRI) recorded on the CDB. The selected cases will then be formatted into super input transactions and the superannuation program APPBSUPR will be run to effect automatic reassessment of service pension based on the new exchange rate. Cases with actions in "IN" or "RI" status will not be processed.
The amount of type 08 super will be varied by applying a conversion factor which is calculated as follows:
new exchange rate=conversion factor
old exchange rate
e.g.$2.22 = 1.1100
The amount in $A of supertype 08 will be multiplied by the conversion factor to give the new rate of super and pension will then be reassessed accordingly.
New Cases and Reviews
5.For any new grant of service pension (involving BRI) or new grant or variation of BRI the conversion to $A must be made at the old exchange rate until the automatic runs are done on the 10 March 1990. Failure to process cases at the appropriate exchange rate will cause errors in the amount of BRI held in the pension assessment which will be further exacerbated each time the exchange rate is varied. For this reason it is suggested that there be established a processing cutoff of BRI cases for a specified period before the adjustment in exchange rate exercise is to be undertaken.
Regulation 45A Procedures
6.The Assistant Secretaries both Benefits Planning and Management and Corporate Development Branches at Central Office will test the programmes used and attest to the correctness of the new exchange rate used. Certificates in the terms of Finance Regulation 45A will be forwarded to the "Authorised Officer" in your Finance Branch.
7.The usual pension payment computer advice letters will be automatically produced for all cases where a variation in pension occurs. The variation advice reason will be "Exchange Rate Variation to $2.22" for cases with type 08 super. The advices will be forwarded direct to your branch from the NCC with the usual daily outputs.
8.The contact officer at Central Office for this exercise will be Ric Moore who can be contacted on telephone (062) 82-5494.
BENEFITS PLANNING & MANAGEMENT
(ALL RUNS ON 10 MARCH 1990)
1. $PENSBRIAPPBSSEL — To select all supertype 08 and to create a file
of all records with this supertype.
IEBGENER — Reblock file for the Super Run.
APPBSUPR — This program has a parameter for new and old exchange rates. The new exchange rate is divided by the old exchange rate which produces a conversion factor which is used to determine the new amount of BRI for the records in the file and subsequent reassessment of pension. Parameter cards are in DVA.PROD.CARDS ($PENSBRI). They are setup in BPP.PROD.CARD ($PENSBRI) and c