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3.3.3 Compensation Affected Pension Payability
Compensation to be claimed
Compensation affected pensions may not be payable if the person or their partner fail to take reasonable action to claim, or obtain the compensation to which they may be entitled.More ?
Compensation in the form of a lump sum
If a person receives compensation in the form of a lump sum, a compensation affected pension is not payable to the person for the lump sum preclusion period[glossary:.:] If the person is a member of a couple and that person, or their partner, received the compensation before 20 March 1997, a compensation affected pension is not payable to the person or their partner for the lump sum preclusion period.More ?
A payment to make amends for loss or injury to a person or property, or as a recompense for some deprivation (such as compensation to the owner for compulsory acquisition of their property).
According to subsection 5NB(1) of the VEA a compensation affected pension means:
- an invalidity service pension payable to a person who has not reached pension age; or
- a partner service pension payable to a person who has not reached pension age; or
- an income support supplement payable to a person who has not reached qualifying age.
The lump sum preclusion period is the amount of time that a person or their partner is ineligible to receive the pension after receiving compensation in the form of a lump sum. Refer to Subsections 59Q(3) to 59Q(8) of the VEA to determine the lump sum preclusion period