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12.7.1.5 Conversion of VEA DP amounts from date of PI claim to date of determination

Document
Last amended 
18 December 2014

In order to work out the net DP for Step 6, for any VEA conditions that were accepted conditions on the date the person claimed MRCA PI:

(a) on VIEW determine the client’s General Rate DP % (or above General Rate) entitlement on the date of the MRCA PI claim (see under ‘Level’ heading in VIEW/Payabilities/Pensions Recurring Payability History/Payabilities);

(b) using the General Rate DP % (or above General Rate) determined at (a), apply the statutory rate payable as at Date of PI determination (Step 2).

Note that the same process should be applied where a client’s DP is being reduced due to recovery of an overpayment.  Information on whether a client’s DP is being reduced/limited can be accessed on VIEW under the Comments tab and under the ‘Adjustment Type’ heading in the Payabilities/Pensions Recurring Payability History/Payabilities folder.

Where an offset is applied because of the payment of a SRCA lump sum or because of other compensation payments, convert the actual amount of DP being paid at the date of the PI claim to a % of the General Rate on that date.  That % should then be applied to the General Rate at the date of the MRCA PI determination to calculate the amount of DP to be included in Step 6.

 

Example 1: No offset being applied to client’s DP/client’s DP is being reduced by an overpayment

PI claim date:11/02/2011

MRCA Date of Determination: 13/10/2012

  1. On VIEW determine the amount of DP being paid to the client on the MRCA PI date of claim - $232.98.
  2. If no offset applies, on VIEW determine the client’s General Rate DP % (or above General Rate) entitlement at that point in time (see under ‘Level’ heading in VIEW/Payabilities/Pensions Recurring Payability History/Payabilities) – 60% of the General Rate (1 January 2011).
  3. Using the client’s General Rate DP % entitlement at the time of the MRCA PI claim (Step 2), determine the statutory rate payable for this % as at Date of PI determination – $252.00 (20 September 2012).
  4. Then convert the DP amount above (step 3) to a weekly amount - $252.00/2 = $126.00

 

Example 2: client’s DP is being reduced by an offset due to receipt of SRCA PI Lump sum or compensation from another source

PI claim date: 25/06/2012

MRCA Date of Determination: 30/03/2013

  1. On VIEW determine the amount of DP being paid to the client on the MRCA PI date of claim - $110.31
  2. If this amount was being reduced by an offset due to the client’s receipt of a SRCA PI lump sum, determine what their General rate DP % entitlement was at that point in time - 100% of the General Rate = $410.10 (20 March 2012).
  3. Calculate the actual DP paid as a percentage of the client’s General Rate DP % entitlement amount at that time - $110.31/$410.10 =26.89%
  4. Using the client’s General Rate DP % entitlement at the time of their MRCA PI claim (Step 2), determine the statutory rate payable for this % as at Date of PI determination - $432.60.
  5. Apply the % obtained at Step 3 to the statutory rate payable for the client’s General Rate DP % entitlement as at Date of PI determination - $432.60 x 26.89% = $116.33.
  6. Then convert the DP amount above (step 5) to a weekly amount – 116.33/2 = $58.16.