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11.3.5 Notice to superannuation scheme administrator

Once an actual or potential overpayment has been identified by the delegate, section 418 requires the delegate to write to the administrator of the relevant Commonwealth-funded superannuation scheme.   That notification should:

  • inform the administrator that the MRCC has made or could make an overpayment of compensation to the retiree; and
  • require the administrator to inform the MRCC whether any pension or lump sum monies have been made to the retiree arising from their entitlements under the superannuation scheme, or whether the retiree's benefits have been deferred.

Where no payments have been received by the retiree and no benefits have been deferred, the MRCC may require the administrator to:

  • cease payments until the MRCC forwards a notice under subsection 420(2); and
  • provide the MRCC with details of the amounts payable to the retiree under the scheme.

It is the delegate's responsibility to examine these particulars and if necessary to implement a new rate of payment.

The delegate has an obligation to advise the retiree of this decision and if necessary to negotiate appropriate terms for recovery of any overpayment.

[A legal advice was prepared by the Legal Services in May 2010 which confirms that an overpayment may be deducted from either a lump sum entitlement at the time of payment or from fortnightly pension entitlements as those entitlements accrue.]