8.2.3 Calculation of Disability Compensation Bereavement Payment

Calculation of disability compensation bereavement payment (formerly known as disability pension bereavement payment)

The rate of disability compensation payment to be used when calculating a bereavement payment must take into account any compensation offsetting and whether the person was receiving Specific Disability Allowance at the time of their death.

Where the veteran was receiving a reduced rate of disability compensation payment due to compensation offsetting, it is the reduced fortnightly rate of pension that is used. For example, if a veteran or former member is receiving Special Rate under the VEA and incapacity payments under the DRCA, then compensation offsetting will apply, and the veteran's Special Rate pension will be reduced. It is this reduced fortnightly rate of pension which is multiplied by six to determine the amount of bereavement payment to be paid.

This applies to disability compensation payments paid under Part II or Part IV of the VEA that are subject to compensation offsetting.

The same approach applies regardless of whether the veteran was single or a member of a couple.

Calculation of disability compensation bereavement payment for a veteran who was a member of a couple after 1 January 2005

The rules for calculating the Disability Compensation Bereavement Payment for members of a couple changed on 1 January 2005.

From 1 January 2005, the bereavement payment in respect of a veteran who was a member of a couple, and in receipt of 100 % General rate, EDA, Intermediate rate or Special Rate under the VEA, is calculated as six times the fortnightly rate of disability compensation payment that was payable on the first pay day after the Department became aware of the death.

Scenario 1: A veteran was a member of a couple and was receiving Special Rate. The rate of Special Rate payable on the first pay day after the Department became aware of the death was $1,092.90 per fortnight. The veteran's widow is therefore entitled to a bereavement payment of 6 X $1,092.90 = $6,557.40.

Scenario 2: A veteran was a member of a couple and was receiving Special Rate.  The rate of Special Rate payable at the time of the veterans death was $1,092.90 per fortnight.  The Department was not advised of the veteran's death for a month, during which a statutory increase occured.  This meant the Special Rate payable on the first pay day after the Department became aware of the death had increased to $1,113.70 per fortnight.  The veteran's widow is therefore entilted to a bereavement payment of 6 X $1,113.70 = $6,682.20.

Scenario 3: A veteran was a member of a couple and was receiving General rate. The rate of General rate payable on the first pay day after the Department became aware of the death was $388.30 per fortnight. The veteran was also receiving a Specific Disability Allowance of $43.20 per fortnight. The total amount that was payable was $388.30 + $43.20 = $431.50 per fortnight. The veteran's widow is therefore entitled to a bereavement payment of 6 X $431.50  = $2,589.00.

Note: Veterans who are blinded in both eyes as a result of a war-caused injury or war-caused disease are deemed to satisfy the criteria in section 24 of the VEA and are entitled to a pension at the Special Rate.     

Calculation of disability compensation bereavement payment for a veteran who was a member of a couple and receiving less than 100% General rate

The bereavement payment in respect to a veteran who was a member of a couple, and in receipt of less than 100 % General rate is calculated as the lower of:

• six times the fortnightly rate of the disability compensation payment that was payable on the first pay day after the Department became aware of the death (including any reductions for compensation offsetting), or
• six times the fortnightly rate of the 100% General rate in force on the first pay day after the Department became aware of the death.

Scenario 1: A veteran was a member of a couple and was in receipt of an 80% General rate pension payable at $310.64 per fortnight on the first pay day after the Department became aware of the death. The veteran was also receiving Specific Disability Allowance of $111.60 per fortnight. The total amount payable was $310.64 + $111.60 = $422.24 per fortnight. The veteran's widow is entitled to a bereavement payment of the lower of six times this rate, or six times the General rate in force on the first pay day after the Department became aware of the death. The calculation is:

6 X (80% General rate + SDA = $422.24) = $2,533.44

6 X (General rate = $388.30) = $2,329.80

The lower of these two amounts is $2,329.80 therefore the widow is entitled to a bereavement payment of $2,329.80.

Scenario 2: A veteran was a member of a couple and was in receipt of an 80% General rate pension payable at $310.64 per fortnight on the first pay day after the Department became aware of the death. The pension was reduced by $90.20 per fortnight due to compensation offsetting. The total amount payable was $310.64  - $90.20 = $220.44 per fortnight. The veteran's widower is entitled to a bereavement payment of the lower of six times this rate, or six times the General rate in force in force on the first pay day after the Department became aware of the death. The calculation is:

6 X (80% General rate – compensation offsetting = $220.44) = $1,322.64

6 X (General rate = $388.30) = $2,329.80

The lower of these two amounts is $1,322.64 therefore the widower is entitled to a bereavement payment of $1,322.64.

Scenario 3: A veteran was a member of a couple and was in receipt of a 40% General rate disability compensation payment payable at $155.32 per fortnight on the first pay day after the Department became aware of the death. The pension was reduced by $155.32 per fortnight due to compensation offsetting, resulting in nil payability on the first pension pay day after the Department became aware of her death. The surviving partner is entitled to a bereavement payment of the lower of six times this rate, or six times the General rate in force on the first pay day after the Department became aware of the death. The calculation is:

6 X (40% General rate – compensation offsetting =0) = $0

6 X (General rate = $388.30) = $2,329.80

The lower of these two amounts is $0 therefore, no bereavement payment is payable.

Calculation of disability compensation bereavement payment prior to 1 January 2005

Prior to 1 January 2005 if a veteran who was a member of a couple died, the total amount of disability compensation bereavement payment payable is calculated as six times the lesser of:

• the deceased's fortnightly disability compensation payment; or
• 100% of the General rate of disability compensation payment.

The rates of disability compensation payment used are those payable on the first pay day after the Department became aware of the death.

Calculation of disability compensation bereavement payment for a single veteran

From 1 July 2008, bereavement payments may be paid to a single veteran where the veteran:

• was in receipt of EDA, or
• was in receipt of Special Rate pension under the VEA, and
• died in indigent circumstances.

The bereavement payment in respect of a single veteran is calculated as six times the fortnightly rate of disability compensation payment that was payable on the first pay day after the veteran died. If the disability compensation payment is reduced due to compensation offsetting, it is the reduced rate that is used for the bereavement payment calculation. If Specific Disability Allowance was payable on the first pay day after the veteran died, then this must be included in the bereavement payment calculation.

Scenario 1: A single veteran died in indigent circumstances. He was receiving EDA of $603.30 per fortnight on the first pension pay day after he died. He was also receiving Specific Disability Allowance of $29.10. The total rate payable on the first pay day after death is $603.30 + $29.10 = $632.40 per fortnight.  A bereavement payment of 6 X (EDA + SDA = $632.40) = $3,794.40 can be made to the veteran's estate.

Scenario 2: A single veteran died in indigent circumstances.  He was receiving Special Rate of $1,092.90 per fortnight on the first pension pay day after he died. His pension was reduced by $598.50 per fortnight due to compensation offsetting. The total rate payable on the first pay day after death is $1,092.90 - $598.50 = $494.40 per fortnight. A bereavement payment of 6 X $494.40 = $2,966.40 can be made to the veteran's estate.

Payments included in calculation of disability compensation bereavement payment

The following payments are included when calculating the rate of disability compensation payment for a bereavement payment:

•  disability compensation payment up to 100% of the General rate payable on the first pay day after death for single veterans or the first pay day after the Department becomes aware of the death for partnered veterans;
•  for deaths occuring after 1 January 2005, disability compensation payment up to 100% and the margin above 100% of the General rate for EDA, Intermediate and the Special Rate pension;
•  Specific Disability Allowance in payment at the time of death.

If any instalments of these pensions have been released after the veteran's death, they may have to be deducted from the disability compensation bereavement payment unless the partner does not have access to them.    

Pensions excluded from calculation of disability compensation bereavement payment

The following pensions are not included when calculating the rate of disability compensation bereavement payment. If any of these pensions have been paid after the death of the veteran they must be recovered from the disability compensation bereavement payment:    

• the margin above 100% of the General rate to EDA, Intermediate rate or Special Rate for deaths occurring prior to 1 January 2005;
•  Service pension;    
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  Income support bereavement payments

  Chapter 8.1

   

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•  Income support supplement;    
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  Income support bereavement payments

  Chapter 8.1

   

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• War widow's/widower's pension;
• a disability compensation payment paid by an overseas authority;
• overseas portion of an Empire Air Training Scheme or Composite case pension.

Allowances excluded from calculation of disability compensation bereavement payment

None of the allowances and payments in Part VI of the VEA, Veterans Supplement or Energy Supplement are to be used in the calculation of disability compensation bereavement payment. If any of these allowances and payments have been paid after the death of the veteran they must be recovered from the disability compensation bereavement payment.     

Prisoner of War Supplement is also not included in the calculation of the disability compensation bereavement payment and has its own rules for payment following the death of the veteran.     

Claim for disability compensation payment determined after death of claimant

When a claim for disability compensation payment is determined after the death of the claimant, disability compensation bereavement payment may need to be calculated. The table below illustrates the situations where this occurs.