C64/1997 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

Purpose of Instruction

This Departmental Instruction is to provide information about the Pounds Sterling exchange rate variation exercise.

Introduction

Following the recent variation in foreign exchange rates, the Secretary of the Department of Social Security has set a new rate for the Pound Sterling and, as a consequence, DVA will apply the new rate.

Effective Date

On payday 15 January 1998 the current exchange rate will change.

New Rate

The exchange rate will change from one Pound Sterling equals $2.3613 to one Pound Sterling equals $2.4366 being the average of the “on demand airmail buying rate” for the two weeks to 5 December 1997.  This is the same exchange rate as the Department of Social Security will be holding from 23 December 1997.

Timetable

This exercise is scheduled for processing on Monday evening, 5 January 1998.

Automatic

Superannu -ation processing

The amount recorded as BRI non-indexed or BRI indexed will be varied by applying a conversion factor.  The amount of income, in Australian dollars, 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

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

Regulation 45A Procedures

The Income Support Branch Head, Compensation and Support Division, in National Office will issue certificates in the terms of Finance Regulation 45A that will be forwarded to the Authorising Officer in your Finance Branch.

IBM GSA Implications

IBM GSA will be producing the cartridge and will forward it to the Lane Print Group Pty Ltd in South Australia.  Overseas, Special Register and cases where a change to treatment entitlement occurs will be separated  by IBM GSA and despatched to the State Office for manual distribution.

Mail out of Bulk Advices

Lane Print Group will print and prepare the advices for lodgement with Australia post by Monday 12 January 1998.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that DP pension converted to $A using the BRI exchange rate.  The resulting reassessment of their SP could vary the RA paid.  A listing of affected cases can be obtained from Murray Chynoweth, Business Delivery Unit.

Contact Officer

The Income Support Branch contact officers for the exercise will be:

Tiffany McIntyre              Telephone:   (02) 6289 6398

Murray Chynoweth         Telephone:   (02) 6289 6799