DATE OF ISSUE: 01 March 1990
CHANGES TO THE PIPS INCOME SCREEN TO ALLOW ENHANCED SUPERANNUATION RECORDING
INTRODUCTION
This instruction is to advise of changes on the Income Screen (IN) for the recording of Superannuation type codes.
SCOPE
This instruction covers the changes to type code but not the changes to the recording of a `Deductible Amount' for superannuation income assessment purposes. Details of the DA changes will be given in a separate instruction.
BACKGROUND
The number of clients receiving superannuation payments has been increasing over recent years. Under the current system it is impossible to accurately record the correct superannuation codes for clients receiving private superannuation payments, and some British and State superannuation. To improve the method of recording payment of superannuation and initiate a system to record overseas income, we have changed the method of recording this information.
This enhancement uses the two digits available in (up to 99 codes) PIPS to store the superannuation type code. The PMF previously limited the number of codes to 9. Superannuation will no longer be shown on the 90 category code.
The advantages of the new system are:
.superannuation funds to allow for possible tape matching of data;
.variations and CPI increases to be automatically applied;
.not increase and so do not need regular reviews;
.change the superannuation fund code;
Conversion
The conversion will take place on 17 March 1990. From Monday 19 March the new codes will need to be used.
The system will automatically transfer all the current miscellaneous (09) clients to the new code of 99 and convert other codes as shown on the following table.
CURRENT — CURRENT
SUPER — SUPERANNUATION — CONVERTED TO
TYPE — STATE — DESCRIPTION — NEW CODE
01 NSW MINERS 11
01 VIC LASB 18
01 QLD MINERS 29
01 WA MINERS 99
02 NSW STATE 10
02 VIC STATE 17
02 QLD STATE 28
02 WA STATE 38
02 SA STATE 32
02 TAS STATE 40
03 ALL C/WEALTH 03
04 ALL DFRB 04
05 NSW RETIREMENT 10
05 VIC HOSPITAL 20
05 SA ETSA 33
06 NSW RAILWAYS 12
06 VIC SEC 21
06 SA SA POLICE 34
07 ALL O/SEAS 59
08 ALL BRI 08
09 ALL MISC 99
MANUAL ACTION
The exercise does not involve any immediate manual action. Conversion of existing clients from the new miscellaneous (codes 99, 59 and 08) to the unique code for their superannuation fund or overseas source will be at the discretion of each Branch Office (probably when next performing a client review).
METHOD OF USING NEW SYSTEM
The new system is still very similar to the current system but allows greater flexibility. The field previously called the "Paying Authority" is now a free form text area for all superannuation types. It was previously free form for the miscellaneous superannuation types. The examiner can input (to Super Type) either a numeric code or a variety of alternative words to select a particular superannuation fund. For example,
Input of the number '10' and the System will return to the type code field 'NSW STATE'
.Input of the word 'NSW STATE' and the System will return tothe type code field 'NSW STATE'.
.Input of the word 'ELCOM' and the System will return to the type code field 'NSW STATE'.
.Input of the word 'RETIREMENT' and the System will return to the the type code field 'NSW STATE'.
A list of the principal and alternative descriptors which can be used by the examiner to obtain a particular superannuation code are at Attachment A.
The Help Facility lists the expanded meaning of the various superannuation funds. A copy of this list is at Attachment B.
Attachment C is a comprehensive list in numeric code order of the administrative details of the paying agencies for both the private and public authority funds.
OVERSEAS INCOME
The changes to allow the specific recording of various foreign incomes is required by the introduction of legislation on the subject of notional exchange rates (DIV 1AA) of the VEA.
Cases with income recorded on superannuation type 07 (overseas income) will be converted to code 59. The recoding of overseas income on the Superannuation Screen records an income value only, no asset value. Div 1AA of the VEA requires regular exchange rate review of income only. Any foreign property that has a significant asset value should not be recorded on the IN(Super) screen. The free form text area is to be used to record the details of foreign income.
MISCELLANEOUS CODE 99
Cases that have income from funds other than those recorded on the schedule at Attachment C will be recorded on code 99 if the superannuation payment is indexed, or 98 if not indexed. The name of superannuation fund is to be recorded in the Super Description free form field (as under the current system). A uniform method of recording miscellaneous funds will aid any subsequent review of those cases.
To assist with uniform recording the following rules should be used:
.Do not use ditto signs
.Do not use full stops, etc
.Do not use Pty Ltd or similar
.Do not use the words Retirement, Employees Fund, Provident, Super Board, Pension, State Name, Society or any other unnecessary words
For example: Tooth does not need & Co, Breweries, Pty Ltd, Super Fund, etc.
SUPER SELECT
The Superannuation Type Selection Run jobs will operate in a similar manner to the current system but will allow the selection of up to 6 types at once.
A new Processing Summary Report detailing the number of clients selected will be produced.
Details of the other schedules produced have not been finalised, but will be improved.
ADVICES
The advices produced have been changed and details of those changes will be given in separate instructions.
The contact officer for this exercise is RIC MOORE on (062) 825494.
DAVID HOLLAWAY
DIRECTOR
BENEFITS ADP SYSTEMS