Income stream indexation review 110-02060030

Indexation review letters issue automatically to customer with lifetime, lifetime pooled, life expectancy or term income streams. The letter issues on the indexation date recorded on the Pension/Annuities Details Variable (SUPV) screen.

• If the Indexation Method has a value of either 'SAL', 'CPI' or 'OTH'
• The review activity (Super index form review) appears on the Future Activity List (FAL) screen and the review reason is 'SNI'.

If the Indexation Method is 'FIX', Service Officers must not update the gross income amount. The system will automatically increase the gross income amount by the indexation percentage on the indexation date.

To process customer based indexation letters, see Income stream customer reviews - defined benefit or military invalidity pension income streams.

All returned reviews are scanned onto the customer's record, for processing.

• Payment is suspended FSS (No reply to income stream review), or manually FRC (Fail to reply to correspondence) check suspension DOC, go to Step 2
• Review letter has been returned for an income stream, go to Step 3
• Customer contacts regarding the review letter, go to Step 4

If there has been no update or reply 28 days after the initial review letter has been sent to a customer a reminder letter will be issued.

If there has been no update or reply 28 days after the reminder letter, the customer's payment will be automatically suspended.

Note: payments may be manually suspended FRC (Fail to reply to correspondence) if they have not responded to the review or the reminder letter. See Cancellation, suspension and rejection reason codes for Newstart System (NSS).

If the customer is contacting to:

• Provide the details, restore the payment via the Benefit Action (BA) screen and update the relevant income streams within the same activity. See Table 2, Step 1
• Advise they previously provided the details, but it has not been actioned, check the information has been provided. If the provided information has:
• already been applies, restore the payment via the BA screen. Go to Step 6
• not been applied, restore the payment via BA screen and update the relevant income streams within the same activity. See Table 2, Step 1

If the required details cannot be located, request that it be provided again. Procedure ends here until the required information is received.

Do not cancel any 'CAN'cellation review off the FAL screen. When the 'CAN'cellation review matures, the system will check if the customer's payment is current. If current, the review will automatically cancel.

Has the customer given full details needed for the indexation review?

• Yes, see Table 2, Step 1
• No, contact the customer to obtain the full details.
• If the customer is unable to provide the full details, create a review for the return of the requested details within 14 days. Record details of the customer contact on a DOC. Procedure ends here
• If customer is able to provide details verbally, see Table 2, Step 1

If the customer:

• Wishes to provide details verbally, go to Step 5
• Advise that details are already provided, go to Step 6

Can the customer give full details verbally for the income stream?

• Yes, see Table 2, Step 1
• No, tell the customer to return the review letter to Centrelink. Record details of the customer contact on a DOC. Procedure ends here

Is it certain that all the required details have been previously supplied and the new gross income and the correct new indexation date have been updated on the SUPV screen and a DOC has been recorded?

• Yes, select the future activity (SNI) on the FAL screen and finalise the review. Procedure ends here
• No, see Table 2, Step 1

• If the review activity is not already on the Activity List (AL) screen, select the correct income stream review (SNI) from the FAL screen. This will transfer it to the AL screen.
  Note: for Manual Follow-up (MFU) action and if the form has been scanned at the Records Management Unit (RMU), the review activity will be on the AL screen
• If the form was scanned, view the scanned image
• Run the Income Stream Review workflow to process the details
  If the workflow is unavailable, select the activity on the AL screen
  The Pension/Annuities Summary (SUPS) screen will display
• Select the appropriate line and the Pension/Annuities Identification (SUPI) screen will display. Check correct product selected

Note: if the product is jointly owned, remember to halve the gross income.

To update the income stream, go to the SUPV screen and update the changed details. The fields that need updating are:

• Event date: field - use the date the customer provided the requested details
• Gross Income: field - the new gross income amount
• Income Frequency: field - the frequency of the payment (if changed)
• Next Indexation Date: field - for CPI indexed income streams:
• This is usually the anniversary of the purchase date. It is not 1 year from the Event Date (date of receipt of requested information) or the date when the income is updated
• Input the date as included in the schedule. Note: if the income stream is from a SMSF or SAF and the indexation date reported is 1 July, it can be accepted
• If this date is blank in the schedule, input the next anniversary of the purchase date
  The annual reviews and updates will now generate correctly
  If an error generates stating that the ‘next indexation date cannot be more than a year in the future’, leave the indexation fields blank. Add a new page with today’s date and replicate the latest data
  Code the indexation details on this most recent page
• If there are existing other deductions, review to determine if they will also need updating with the indexation of the gross income amount as based on a percentage of the Gross Income
• Source: DOR: and Action: fields
• Press [Enter]
• Check the SUPS screen displays the updated income stream details
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC

Note: if there is more than one income stream product, repeat this step for each of them. Where there are already later event dates, review those dates to determine if any new details (for example, the gross income), should also be coded for any later Date of Event (for example, as part of the same financial year) and amend as required.