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2.7.5 Administrative overpayments

2.7.5.1Incorrect action or lack of action may constitute administrative error. As with service pension, an overpayment of DP may be caused or compounded by departmental error - e.g. if a pension is to be reduced from temporary payment at special rate to a lower percentage rate from a certain date, but for some reason the reduction is not actioned from the specified date.

2.7.5.2Overpayments caused by administrative error which require manual processing may be waived - recovery from the pensioner is not always sought. For more information on waiver, refer to this manual's Section 7.18 Waiver.

2.7.5.3CRASS automatically calculates overpayments and invokes DMRS which allows for the automatic generation of advice letters and recovery action, all overpayments raised on the system are recovered except where the pensioner is no longer in payment. Where the pensioner is no longer in payment a $50 threshold has been set.

2.7.5.4Overpayments that are not subject to automatic recovery may be subject to the same rules that applied before the introduction of automated debt recovery systems. Therefore, ministerial waiver provisions still apply where debts require manual calculation, data entry and advice letters. An overpayment caused by administrative error, which requires manual processing, is usually not calculated unless it appears that the overpaid amount will be $200 or more. These overpayments are waived without calculation as per subparagraph 206(1) (b)(ii) VEA.