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8.6 Compensation Offsetting of Disability Pension and Lump Sums

The offsetting of disability pension resulting from other compensation is not based on repaying the lump sum.  A report by the Senate Foreign Affairs, Defence and Trade Committee into aspects of the VEA and Military Compensation Scheme was tabled on 18 September 2003.  The Senate Committee did not find that the offsetting provisions deliver an unjust outcome for ex-ADF members who claim under both the VEA and the SRCA.  The Committee did not recommend any changes to the way offsets are calculated.  The report from this Committee is available at under completed inquiries.

Similarly, Chapter 19 of the 'Review Of Military Compensation Arrangements' 2011 examined alternative models to the actuarial model.  It was recommended that existing offsetting arrangements be maintained and lump sums be converted to a fortnightly equivalent using the actuary calculations.  The perceived inequities of repaying amounts in excess of the initial lump sum needs to be addressed during the communication process.  Communicating more effectively and clearly with claimants regarding the offset applied to their specific circumstances is required before any final decisions are made.





Australian Defence Force.

Veterans' Entitlements Act 1986.

Safety, Rehabilitation and Compensation Act 1988