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B31/1990 BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING
DATE OF ISSUE: 16 AUGUST 1990
BRITISH RETIREMENT INCOME (BRI) EFFECT UPON SERVICE PENSION OF VARIATIONS IN THE EXCHANGE RATE OF POUNDS STERLING
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.
2.On payday 20 September 1990 the current exchange rate will change from 1 Pound Sterling equals $A2.18 to 1 Pound Sterling equals $A2.2615, being the average of the "on demand airmail buying rate" for the month of July 1990.
3.The various computer runs necessary for this exercise and the Statutory Pension Increase processing have been scheduled for the weekend of 1/2 September 1990. These runs will be conducted AFTER the Statutory Increase processing to enable the pensioner advices to contain the correct pension rate and fringe benefit details. THIS INSTRUCTION MUST BE READ IN CONJUNCTION WITH THE SI INSTRUCTION (B30/90).
Automatic Superannuation Processing
4.The programs for adjusting the exchange rate to be applied to BRI cases have been re-written to allow more flexibility and ease of use. Cases with actions in "SB" or "PY" status will not be processed.
5.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=$2.2615=1.0374
old exchange rate$2.18
6.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.
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.
8.The schedule which identifies cases with fringe benefit changes, normally produced after BRI processing, will be needed to identify cases requiring manual action. A matrix of affected cases and the action required is included in the Statutory Increase Departmental Instruction No B30/90.
Impact of Statutory Pension Increase Processing
9.It should be noted that as a result of the SI processing effective from the same payday, there could be duplication of cases where a change has occurred as a result of SI and a further change as a result of the BRI run.
10. The advices will be forwarded direct to your Branch from the NCC with the usual daily outputs. Culling of advices as per the matrix mentioned in paragraph 8 will need to be carried out.
11. The contact officer at Central Office for this exercise will be GLENYS BULTERS telephone (06) 289 6019.
ACTING ASSISTANT SECRETARY
BENEFITS PLANNING & MANAGEMENT