»Ê¹ÚÌåÓýapp

This subject is presented as follows

General
System action
Work items
Using percentage increase for following year

General

State pensions and benefits are increased in April each year. »Ê¹ÚÌåÓýapp 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 employment and support allowance or incapacity benefit

When the uprating details are available, the computer carries out the Automatic state pension / benefits coding. »Ê¹ÚÌåÓýapp system

• Reviews records which include a state pension / benefits in coding
  And
• Revises the deduction

»Ê¹ÚÌåÓýapp review usually takes place towards the end of January, after the Annual Coding Main Review. »Ê¹ÚÌåÓýapp Annual Coding Business Guidance Note (BGN) gives the exact dates each year.

»Ê¹ÚÌåÓýapp system reviews all live and leaver records which include a deduction in the coding for state pension / benefits and incapacity benefit. It ignores those records where the deceased indicator is set.

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System action

»Ê¹ÚÌåÓýapp system identifies cases where the following year's coding includes a deduction for state pension / benefits or incapacity benefit.

Where an individuals tax code contains more than one benefit type NPS will only allow one benefit type to be carried forward to CY+1.

To do this NPS will use the following priority order to determine which benefit should remain

• 1 State Pension will be coded above Employment and Support Allowance and Incapacity Benefit
• 2 Employment and Support Allowance will be coded above Incapacity Benefit
• 3 Incapacity Benefit will be coded where no other benefits are held

When the benefit to be carried forward has been determined

• »Ê¹ÚÌåÓýapp deduction will be revised

• Using the new annual rate on the DWP uprating tape
  Or by
• Increasing it by the correct percentage increase announced by the Government
• It will not update cases which have the static state pension / benefits indicator

Automatically sets

• »Ê¹ÚÌåÓýapp actual state pension / benefits indicator or the actual employment and support allowance or the actual incapacity benefit indicator, where it uses the DWP uprating amount
  Or
• »Ê¹ÚÌåÓýapp estimated state pension / benefits or estimated employment and support allowance or estimated incapacity benefit indicator, where it uses the percentage amount

You can set both these indicators manually during day to day work in the income, allowances, benefits and deductions area.

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Work items

After the uprating, the system will generate work items for you to review.

»Ê¹ÚÌåÓýapp following tells you what the work items are and why they are produced.

Work item	Created
183 - Annual Coding - update NIB -IB shown	Generated when the DWP file shows state pension / benefits to be updated but the individual’s record has incapacity benefit in the CY+1 tax code. »Ê¹ÚÌåÓýapp work item Action Guide is at PAYE13014.
184 - Annual Coding - update IB - NIB shown	Generated when the DWP file shows incapacity benefit to be updated but the individual’s record has state pension / benefits in the CY+1 tax code. »Ê¹ÚÌåÓýapp work item Action Guide is at PAYE13015.
187 - Annual Coding - update NIB - primary EMPT live at (This content has been withheld because of exemptions in the Freedom of Information Act 2000)Ìý	Generated when the DWP file shows state pension / benefits to be updated but the individual's primary employment is live at (This content has been withheld because of exemptions in the Freedom of Information Act 2000). »Ê¹ÚÌåÓýapp work item Action Guide is at PAYE13016.

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Using percentage increase for following year

»Ê¹ÚÌåÓýapp system always makes a percentage increase if any of the following apply:

• A temporary reference number, rather than a National Insurance number is present
• »Ê¹ÚÌåÓýapp National Insurance number on the record and on the DWP list do not match
• »Ê¹ÚÌåÓýapp state pension / benefits deduction for the current year exceeds the DWP amount for that year (this check is not carried out for Incapacity Benefit cases)
• »Ê¹ÚÌåÓýappre is a state pension / benefits deduction in the coding, but the case is not included on the DWP tape (this check is not carried out for Incapacity Benefit cases)
• »Ê¹ÚÌåÓýapp benefit description does not match

»Ê¹ÚÌåÓýapp system will set the estimated state pension / benefits or estimated incapacity benefit indicator for these cases.