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DI-06-2020 Indexation of British Official Public Service and Armed Forces Pensions
Indexation of British Official Public Service and Armed Forces Pensions
|Amends DI No:||N/A|
|Replaces DI No:||N/A|
|Purpose||The purpose of this Departmental Instruction is to advise of processing arrangements for the automatic indexation of British Official Public Service and Armed Forces pensions (formerly Indexed BRI, code 09). The reason for the change of terminology was explained in DI C04/2004 British Income.|
Increase in Public Service Pensions
The British Government has announced that British Public Service Pensions will rise in April 2020 by 1.7% 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):
|Date of effect|
The date of effect to be used for the variation is Tuesday 7 April 2020, for payday 23 April 2020.
|The conversion factor for this indexation is 1.017||The new amount of pounds sterling to be recorded will be calculated as follows:|
The variation percentage (1.7%)
----------------------------- + 1 = Conversion factor
The Australian dollar amount will then be reassessed accordingly.
The conversion factor for this indexation is 1.017.
|Date of processing run|
The processing run for this exercise will take place on 6 April 2020.
|Manual cases||Cases that are in investigation, submission or determination status at the time of the run will be frozen and listed for subsequent manual processing.|
An 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 NSW.
Indexation of British war pensions
British war pensions (British DP) will also increase by 1.7% on 7 April 2020. A separate Departmental Instruction will be issued about the application of this increase to:
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.
The Income Support contact officers for this exercise are Jennifer Payne (x470392) and Caitlin Frost (x483374)
27 March 2020