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6.6.3 Calculating the amount of debt

6.6.3.1Once the off and on rates have been established, the amount of debt is calculated using the following formula:

Total Debt

=

(Off Rate

-

On Rate)

x

number of paydays (or days as applicable) in overpayment period

The formula may need to be repeated if there are rate variations during the overpayment period.

Automatic overpayments due to DOE provisions, calculated with effective dates post 21 April 2000, may be calculated using the Pensioner Information Processing System (PIPS). If an overpayment is calculated using PIPS, the overpayment amount will be automatically transferred to the Debt Management Recovery System (DMRS). Overpayments occurring prior to 21 April 2000 must be calculated manually e.g. Excel, or a calculation sheet. Manually calculated overpayments must be recorded manually in DMRS. The DMRS System manual can be accessed via the Intranet and contains the procedures for adding a debt to DMRS manually.    

Example

Veteran was paid service pension at the rate of $200 per fortnight for the period 6 January 2003 to and including 12 May 2003 (i.e. 10 pays).

The rate of service pension which should have been paid during that period was $150 per fortnight. Accordingly total overpayment is calculated as follows:

Total Debt = ($200 - $150) x 10 = $500