DI-6-2019 Indexation of British Official Public Service and Armed Forces

Increase in Public Service Pensions

The British Government has announced that British Public Service Pensions will rise in April 2019 by 2.4% in line with their Retail Price Index. The pensions affected are listed below and should be recorded on PIPS as foreign superannuation (British Official Public Service/Forces):

• British Official Public Service Pension as listed at https://www.gov.uk/government/publications/public…

• British Armed Forces pension (ie Royal Army, Royal Navy or Royal Air Force).

The conversion factor for this indexation is 1.01

The new amount of pounds sterling to be recorded will be calculated as follows:

The variation percentage (2.4%)

-----------------------------     +  1  =  Conversion factor

100     

The Australian dollar amount will then be reassessed accordingly.

The conversion factor for this indexation is 1.024.

Advice Letters

A one-page advice will be generated for all clients who have a variation to their rate of DVA pension payment because of the indexation exercise.  All advices produced from this processing exercise will be printed as batch advices on printers in the State locations.

Please check advice schedules to reconcile Group Destination cases, and check all advices before they are sent to ensure they contain correct information.

Indexation of British war pensions

British war pensions (British DP) will also increase by 2.4% on 9 April 2019. A separate Departmental Instruction will be issued about the application of this increase to:

• British war pension in assessments of income support supplement, rent assistance and age pension;
• Empire Air Training Scheme (EATS) and other composite cases.

Indexation of British social security pension

British social security pensions will not be indexed automatically.  See Part 10, Chapter 1, Section 5 of the CLIK Policy and Procedure Libraries for more information.