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Payment Arrangements for Partnered Pensioner Bereavement Payment

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Last updated: 26 May 2008

VEA ?

Section 53L VEA - Survivors reassessed rate less than rate of couple

Section 53K VEA - Survivors reassessed rate equal or greater than rate of couple

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Partnered Pensioner Bereavement Payment

    

The partner of a deceased pensioner is entitled to  a bereavement payment of 98 days entitlement, based on the rate of payment on the last day of the last pension period prior to death. The 98 days entitlement of pension can be paid wholly or partly as a lump sum.

Entitlement of partner of deceased pensioner

    

In addition to the 98 days entitlement of pension, the partner of a deceased pensioner is entitled to a continuation of his or her pension entitlements, for the duration of the bereavement period, at the rate payable on the last day of the last pension period before his or her partner's death.

Ceiling rate rules during bereavement period

Where the partner of a deceased pensioner is a war widow/er, the ceiling rate rules do apply when calculating the bereavement payment.  In cases where both members of a couple are war widow/ers, the ceiling rate will apply in respect of the survivor but the ceiling rate is ignored in respect of the deceased.

Reassessed rate greater than rate last payable to couple

    

If one member of a couple has a source of income that ceases upon his or her death, the partner may be entitled to a rate of pension as a single person that is equal to or higher than the combined rate payable on the last day of the last pension period  before the death.

In this circumstance, the partner of the deceased pensioner is reassessed as a single person from the date of death and payment of a separate lump sum bereavement payment is not necessary.

Lump sum amounts received during the bereavement period

Lump sum amounts received by a partnered pensioner during the bereavement period are held in the pension assessment for 12 months. The date of the event for the commencement of this 12 month period is the day after the bereavement period end (day 99). This date of event then determines the date of effect for the pension change, depending on whether or not notification of the change is received within the allowed notification period.

Summary of payment arrangements

The table below summarises the entitlement of the partner of a deceased pensioner.

If the partner's rate, reassessed as a single person, is...

then the partner of the deceased pensioner..

and the bereavement payment..

less than the combined rate last payable to the couple,

continues to receive his or her pension entitlement for the duration of the bereavement period, at the rate payable on the last day of the last pension period before the pensioner's death and is then reassessed as a single person,

  • consists of a lump sum payment, or

  • a continuation of the deceased pensioner's entitlement , or

  • a combination of both.

higher than or equal to the combined rate last payable to the couple,

is paid the reassessed rate from the date of the pensioner's death,

is contained within those ongoing payments and is identified as a separate amount only for taxation purposes.

Calculating the lump sum

    

If all or part of the bereavement payment is to be paid as a lump-sum, the amount of that lump sum can be calculated using the equation below:

Lump-Sum Bereavement Payment  =  (98  -  D)  ?  E

The elements of this equation are explained in the table below.

Element

Represents

98

The maximum number of days in the bereavement period.

D

The number of days that have elapsed since the date of death.

E

The daily entitlement payable to the deceased person on the last day of the last pension period before his or her death.

DFISA and partnered bereavement payment calculations

Where the surviving partner is eligible for a bereavement payment, the calculation of that payment is based on the amount of pension or benefit plus any amount of DFISA the deceased was receiving just prior to death.    

More ?

Bereavement Payments and DFISA

Section 5.9.5

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Bereavement period, as defined in section 53H of VEA, in relation to a person's death, means the period of 98 days starting on the day on which the person died.

 

 

A bereavement payment is an amount payable in respect of a deceased pensioner that represents a continuation of the pensioner's entitlement for a period following the death (the bereavement period).

The payment can be made as:

  • a lump sum in advance, or
  • a continuation of the deceased person's pension instalments, or
  • a combination of both, or
  • a portion of the rate of pension payable to the surviving member of a couple identified as a separate amount only for taxation purposes.

According to subsection 5Q(1) (b), of the VEA a pension period is a period of two weeks that starts two days before a payday (i.e. Tuesday) and ends two days before the next payday (i.e. close of business Monday).

 

 

A bereavement payment is an amount payable in respect of a deceased pensioner that represents a continuation of the pensioner's entitlement for a period following the death (the bereavement period).

The payment can be made as:

  • a lump sum in advance, or
  • a continuation of the deceased person's pension instalments, or
  • a combination of both, or
  • a portion of the rate of pension payable to the surviving member of a couple identified as a separate amount only for taxation purposes.

Bereavement period, as defined in section 53H of VEA, in relation to a person's death, means the period of 98 days starting on the day on which the person died.