Departmental Instruction




The British Government has announced that the National Insurance benefit will rise in April 2002 by 1.7% 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.

Date of Effect

The date of effect for the 1.7% variation is 16 April 2002 to be available on payday 2 May 2002.

The conversion factor for this indexation is 1.017

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 1.017

Date of processing run

This exercise is scheduled for processing on Tuesday evening 16 April 2002.

Manual cases and MS cases

When cases are in frozen status they will be lifted for subsequent manual processing by state office staff.

IBM GSA implications

IBM GSA will be printing the advices and despatching them to the State Offices for manual distribution.  Special Register cases will 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.

Advice letters

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.

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

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.

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 16 April 2002.

Contact officer

The Income support Branch contact officer for the exercise will be:

Nasreen HaqueTelephone:(02) 6289 1125


Branch Head

Income Support

12 April 2002