International Data Exchange Program and auto indexation of foreign pensions 106-08040000

The exchange of information with agreement countries under Australia's international social security agreements is authorised under s208(1)(b)(iii) of the Social Security (Administration) Act 1999. A Memorandum of Understanding (MOU) with the United Kingdom (UK) operates under Public Interest Certificate under s208(1)(a) of the Social Security (Administration) Act 1999.

The International Program in Services Australia has negotiated bulk exchanges of foreign pension rates and deaths with a number of agreement countries and the UK.

Files are exchanged via secure electronic protocols with most being on an annual basis in line with regular indexation. An automated daily two-way exchange applies with New Zealand. See Agreement liaisons, NZ CICs and exchange of information.

As certain countries apply regular indexation of pensions, an auto-update of known percentage increases may be applied to previously confirmed rates of foreign pensions. The increases are received from official sources and may be a fixed percentage, linear or sliding scale increase.

Information received via data exchange or a rate updated via auto-indexation is considered to be accurate as it is received from the paying authority and further updates to this data may be restricted to staff in International Services (CIS).

DEX and CPI activity is limited to foreign pension or death action and is not a full review of the customers’ circumstances. Reviews for foreign pensions or deceased customers that are not covered by DEX or CPI are handled by other compliance measures such as Payment Accuracy Reviews (PAR) or Proof of Life Certificates.

Information exchanged between the agency and other organisations must be matched against records. After this information is matched, staff can run the relevant business process on the matched record. For example, death action or foreign pension updates.

Matching is highly effective but in rare cases, mismatches may occur.

If a Service Officer identifies a mismatch, they must:

• fix any incorrect updates that have been applied at point of contact
• use the DEX escalation process to refer the record to International Program. This will ensure records are updated to prevent the mismatch reoccurring

Auto-indexation increases (CPI) are applied from the 1st of the applicable month. The updates are applied prior to the monthly exchange rate revaluation process. The exception is United Kingdom (UK) increases, which apply from early April each year.

For the date of effect when the system runs the DEX death action, it uses the:

• date of death, if known, and
• date of receipt of the information,

Note: if the date of death is not known, a referral is generated for investigation.

DEX foreign pension processing uses a Date of Event (DOV) and Date of Receipt (DOR) of 'T' for today for ongoing rates of foreign pensions.

New foreign pension coding may result in an arrears debt referral, and if arrears information is provided, the DEX process may record an arrears lump sum. This will generate a debt shell that staff will investigate.

For more information on the date of effect of determinations, see:

• Death of an income support customer or their partner
• Dates of effect for review of decision outcomes
• Using the correct date of effect when raising debts
• Date of receipt

The International Program is responsible for:

• coordinating the updates to customer records based on information exchanged
• referring death notifications and arrears debts to International Services (CIS)
• responding to DEX escalations

Staff with the appropriate skills tags will get follow-up work because of a DEX update. This work may involve:

• Investigation and processing of death advice
• Investigation of arrears debts, and
• Negotiation of debt repayments

International Services (CIS) is responsible for handling customer enquiries related to DEX and CPI.

Note: the social security authority in the relevant country, not Services Australia, determines entitlement to a foreign pension, including the rate of payment. Customers need to discuss entitlement or rates of payment with the social security authorities in the other country.

Contact details for foreign pension authorities are available on the Reference Data Enquiry (CODES) screen.

A DEX update may create a referral when:

• a death notification is received and:
• a partial or no date of death is provided, or
• the full date of death is provided and the death action:
  - can be run and results in a debt for investigation, or
  - cannot be run
• New foreign pension coding reduces the rate paid to the customer or their partner to check for any debt for failing to declare in time or arrears debt may exist
• Arrears lump sum is updated and results in a debt for investigation

Where a customer contacts us about a data exchange or auto-indexation issue, Service Officers should immediately attempt to fix any issues at point of contact or refer to a Service Officer who has the skills to do so.

However, Service Officers must escalate all data exchange issues to International Program to ensure corrective action is taken and to prevent issues reoccurring.

Regardless of any data exchange or auto-indexation, customers are still required to meet their obligations to the agency under social security law to notify of changes in their circumstances, including changes in foreign pensions.

In some circumstances, staff may ask a customer to supply a copy of their statement from the paying authority even though information has been received via the data exchange program. Service Officers should still accept foreign pension statements presented by customers.

Customers are also required to notify the paying authorities of other countries of changes in their circumstances that might affect their foreign pension. Staff should:

• help customers using their communication channels as much as they can
• not tell customers they do not have to advise the foreign pension paying authority directly

Contact details for foreign pension authorities are available on the Reference Data Enquiry (CODES) screen.