DATE OF ISSUE: 21 OCTOBER 1993
EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON SERVICE PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)
INTRODUCTION
1.In line with the current administrative procedures for the determination of foreign exchange rates, the Secretary of the Department of Social Security has set a new rate for the Pound Sterling.
ADVICE LETTERS
2.The advice letters for this exercise have undergone substantial review. The aim of the review was to reduce the mailing cost and the level of pensioner complaint about the length and cost of our letters.
3.The advice letters will:
be joint - one per household (where applicable);
consist of one page (one image) only;
contain information on the exchange rate only;
be sent in pension variation cases only; and
contain no payment box.
A copy of a BRI advice in the new format is at Attachment A.
4.The decision to exclude the payment box was taken as a cost cutting measure and involves a considerable risk in the amount of enquiries it could generate. It will be important to make a judgement about the likelihood of getting the same complaints next time if we continue to leave the payment box off the advices.
EFFECTIVE DATE
5.On payday 11 November 1993 the current exchange rate will change from One Pound Sterling equals $2.3381 to One Pound Sterling equals $2.2732 being the average of the "on demand airmail buying rate" for the two weeks to 20 October 1993. This is the same exchange rate as the Department of Social Security will be holding from 4 November 1993.
TIMETABLE
6.This exercise is scheduled for processing on Wednesday night, 27 October 1993.
AUTOMATIC SUPERANNUATION PROCESSING
7.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 =$2.2732 =0.9722
old exchange rate$2.3381
8.The amount in Australian Dollars of income recorded as British Retirement Income superannuation type 08 or 09 will be multiplied by the conversion factor to find the new rate of superannuation. The pension amount will then be reassessed accordingly.
MANUAL CASES AND MS CASES
9.Cases with actions in SB or PY status will not be processed. These cases will be listed on the manual case listing for follow up action, and CMS/PIPS cases will be created automatically for Branch Office action.
REGULATION 45A PROCEDURES
10.The Assistant Secretary of both Benefits Planning and Management and IT Applications Branches in Central Office will attest to the correctness of the new exchange rate and the programs used to conduct the exercise. Certificates in the terms of Finance Regulation 45A will be forwarded to the Authorising Officer in your Finance Branch.
NCC IMPLICATIONS
11.This exercise is scheduled for processing as ($PPBFORT) on Wednesday night 27 October 1993.
12.The NCC will be printing the advices. Overseas, Special Register and cases that change treatment entitlement will be separated by NCC and despatched to the Branch offices for manual distribution.
MAIL OUT OF BULK ADVICES
13.R.L. Polk have been contracted to prepare the advices for progressive lodgement with Australia Post by 5 November 1993.
CONTACT OFFICER
14.The Benefits contact officers for this exercise will be:
Paul WoodTelephone: (06) 289 6799 (Systems)
Ric MooreTelephone: (06) 289 4739 (Policy).
KAY GRIMSLEY
ASSISTANT SECRETARY
BENEFITS INCOME SUPPORT
October 1993
THIS ATTACHMENT HAS BEEN REKEYED TO ENABLE IT TO BE INCLUDED ON THE GENERAL
ATTACHMENT
BRANCH OFFICE
21 Kirksway Place
Battery Point TAS 7004
Postal Address:
GPO Box 481 E, Hobart Tas
Telephone: ()
27 October 1993
JOHN CITIZEN — Your file Number is TPX 12345
MARY CITIZEN
24 LONDON CIRCUIT
WODEN ACT 2902
Dear Mr and Mrs CITIZEN,
VARIATION TO YOUR SERVICE PENSION
Due to variations in the exchange rate for pounds Sterling, a new rate of $2.2732 equals one pound Sterling will be used to calculate your service pension from 11 November 1993. This rate has been calculated by averaging the on-demand airmail buying rate from the Commonwealth Bank of Australia for the two weeks ending on 20 October 1993.
If you do not agree with this decision, you may apply to have it reviewed by a Delegate of the Repatriation Commission.
Any request for a review must be made in writing within three months of the day you receive this letter. Your letter should state the specific grounds for your request for review.
If you have any questions about this matter please contact this office at the address or telephone number shown at the top of this letter.
Yours sincerely,
G K Stonehouse
Deputy Commissioner as
Delegate of the Secretary