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9.2 Effective dates and indexation for offsetting disability pension

Lump sum compensation - Sections 30C(1) and 74(3) - The earlier of the date the lump sum is made or the date the pension becomes payable.  This may be from the initial grant of a disability pension or from a pension increase following the acceptance of the compensable condition under the VEA.  An offset used at the commencement of the process and based on the fortnightly equivalent is not indexed until the following SI run in March or September.  An offset based on the notional assessment is indexed with effect from the date of commencement of disability pension.

Lump sum compensation - Sections [glossary:30C(2), 30C(3) , 74(3A) and 74(3B)- ie Lump sum incapacity payments made under sections 30 and 137 of SRCA.  The later of the date the lump sum is made or the date the pension becomes payable.  This may be from the initial grant of a disability pension or from a pension increase following the acceptance of the compensable condition under the VEA.

Periodic compensation payments - Sections 30D and 74(2)- The date of the disability pension grant for the compensable incapacity or the date of grant of the periodic payment, whichever is the latter.

Section 25A - The later of the date of effect of the payment of the AGR pension or allowance or the date of the payment of the lump sum.  There is no provision in the [glossary:SRCA:523] to recover overpaid disability pension resulting from the application of section 25A from compensation payments made under SRCA.

EXCEPTION - Disability pensions paid for a war-caused incapacity were not subject to compensation offsetting before 21 June 1994.  Lump sums received prior to 21 June 1994 are not offset against disability pension paid for war-caused incapacity.  For conditions accepted as war-caused prior to 21 June 1994 (under Part II of VEA), the earliest date from when an offset can be applied to disability pension, resulting from a lump sum payment from another source is 21 June 1994.

A condition for which compensation has been paid from a source other than the VEA.

Veterans' Entitlements Act 1986.

The portion of the disability pension paid in respect of the compensable condition.