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C03/2001 INDEXATION OF BRITISH RETIREMENT INCOME (BRI)
DATE OF ISSUE: 20 APRIL 2001
INDEXATION OF BRITISH RETIREMENT INCOME (BRI)
1.The British Government has announced that the National Insurance benefit will rise in April 2001 by 3.3% in line with their Retail Price Index. The pensions effected are listed below and should be recorded on PIPS/PC as superannuation income (Indexed BRI):
service pensioners in receipt of British Department of Social Security pension who live in any country other than Australia, Canada, South Africa or New Zealand;
service pensioners in receipt of a British Indexed pension i.e. public service, navy, teachers etc., regardless of the country of residence.
- The date of effect for the 3.3% variation is 17 April 200 to be available on payday 3 May 2001.
The amount, in Pounds Sterling, of income recorded as British Retirement Income Indexed BRI will be multiplied by applying a conversion factor, to find the new rate of superannuation. The conversion factor is calculated as follows:
The variation percentage
----------------------------- + 1 = Conversion factor
The pension amount will then be reassessed accordingly.
The conversion factor for this indexation is 1.033.
AUTOMATIC SUPERANNUATION PROCESSING TIMETABLE
4.This exercise is scheduled for processing on Thursday evening 19 April 2001.
MANUAL CASES AND MS CASES
5.When cases are in frozen status they will be lifted for subsequent manual processing by state office staff.
IBM GSA IMPLICATIONS
6.IBM GSA will be printing the advices and despatching them to the State Offices for manual distribution. Special Register cases will not have an advice produced, these cases will be listed on the exception report. A full advice will be generated for any fringe benefit/change of treatment cases.
7.An advice will be generated for those cases where a 'variation' in pension payment occurs as a result of the indexation exercise. A standard one page, 2 sided, advice containing the indexation information and payment information line advising pensioners of their fortnightly payment will be produced. Where a joint advice is generated both the veteran and partner will each have a payment information line.
8.Before the advices are despatched from your State, a sample check should be carried out to ensure they contain the correct State Office address, signature block, payment information and the pensioner is a recipient of Indexed BRI.
PENSIONERS VISITING OVERSEAS COUNTRIES
9.If a service pensioner in receipt of a British DSS pension is holidaying outside Australia, in any country other than Canada, South Africa or New Zealand, they are eligible for the increase. The increase will only be paid if the British DSS is aware of the pensioners whereabouts. On their return to Australia these pensioners should be sent an income review to reassess their pension payment.
10.Service pensioners in receipt of a British Indexed pension will have their British pension increased regardless of the country of residence. These cases should all be recorded as British Indexed pension. All such pensions should be reassessed with an effective date of 3 May 2001.
11.The Income Support contact officers for this exercise will be:
Lucy BergerTelephone: (02) 6289 6013(Business Operations &
Nasreen Haque Telephone: (02) 6289 1125 (Business Operation &
Kevin ChapmanTelephone: (02) 6289 6749(Systems Delivery)