PAYE13030 - coding: coding: general principles: automatic coding of state pensions and benefits

This subject is presented as follows

General

Computer action

Exception Lists

Using percentage increase for following year

General

State pensions and benefits are increased in April each year. The DWP supplies the uprating details on magnetic tape, which gives the revised details for

• Only those pensioners within the uprating service

And

• All cases where the code includes a deduction for Incapacity Benefit (IB)

When the uprating details are available, the computer carries out the Automatic National Insurance benefit coding. The computer

• Reviews records which include a National Insurance Benefit (NIB) in coding

And

• Revises the deduction

The review usually takes place towards the end of January, after the Annual Coding Main Review. The Annual Coding business Guidance Note (BGN) gives the exact dates each year.

The computer reviews all live and leaver records which include a deduction in the coding for NIB or IB. It ignores those where

• The deceased or permanent cessation signal is set

Or

• The record type is P204

Computer action

The computer identifies cases where the following year's coding includes a deduction for NIB or IB. It

• Revises the deduction
• • Using the new annual rate on the DWP uprating tape
  • Or by
  • Increasing it by the correct percentage increase announced by the Government
  • Unless
  • You have completed the code for CY+1 by entering ‘Y’ in the OK? field

• Automatically sets
• • The NIBACT or IBACT signal, where it uses the DWP uprating amount
  • Or
  • The NIBEST or IBEST signal, where it uses the percentage amount

You can set both these signals manually during day to day work in COP Function CD.

Exception Lists

After the uprating, the computer will list certain cases for you to review, NIL lists are not printed. NIB and IB cases appear on the same list.

The following tells you what the Exception Lists are and why they are produced ( there is no Exception List Type 1).

• EXCEPTION LIST TYPE 2 - CODED AMOUNT EXCEEDS DSS AMOUNT
• • The computer compares the current year's National Insurance benefit deduction with the amount on the DWP Uprating tape. This list is produced where the discrepancy exceeds a set amount decided for the year

• EXCEPTION LIST TYPE 3 - INCORRECT NINO
• • The NINO on the two records do not match

• EXCEPTION LIST TYPE 4 - CASE NOT SHOWN ON DSS LIST
• • There is a deduction for NIB in the coding but no corresponding entry on the DWP list

• EXCEPTION LIST TYPE 5 NIB/IB INDICATORS NOT CONSISTENT
• • The benefits on the two records do not match (that is, NIB is shown on one and IB on the other). If both NIB and IB are coded out only the IB will be uprated

The Annual Recoding Business Guidance Note (BGN) will tell you what action to take each year.

Using percentage increase for following year

The computer always makes a percentage increase if any of the following apply

• A Temporary Reference Number, rather than a NINO, is present
• The NINO on the record and on the DWP list do not match
• The NIB deduction for the current year exceeds the DWP amount for that year ( this check is not carried out for IB cases)
• There is a NIB deduction in the coding, but the case is not included on the DWP tape ( this check is not carried out for IB cases)
• The benefit description does not match

The computer will set the NIBEST or IBEST signal for these cases.