7.11.1 Lump Sum payable to 'Other Dependants'

A maximum amount is available for distribution amongst all 'other dependants' who meet the eligibility criteria described in chapter 7.5.1 (section 263(1) of the MRCA).

In addition to there being a maximum amount set for the total compensation payable to all dependants, there is also an upper limit to the amount payable to each individual dependant (section 263(1)(a) of the MRCA). Both current upper limits are available in the Compensation & Support reference library - Payment Rates

Because it may be necessary to distribute a fixed amount amongst a number of dependants, delegates should do everything possible to ensure that all the dependants who are entitled to claim have done so.

Section 263(2) of the MRCA sets out how to determine the amount of compensation.  The amount of compensation payable to each 'other dependant' is the amount that the Commission determines is reasonable. The amount payable to each dependant must be within the set limit and is assessed having regard to:

• the financial losses suffered by each dependant as a consequence of the member's death (other than compensation paid or payable under the MRCA which is not to be taken into account);
• the degree of their dependency on the member; and
• the length of time the dependant would have remained dependent on the member but for the member's death.

Put simply, the dependant must have either been in receipt of some form of payment from the member, been reliant on the member economically or received regular services from the member which can be translated into an economic value.

No other factors may be taken into account.  As mentioned above, the amount is limited by the maximum payable to an individual and the total amount payable to all other dependants.This limitation on the amount of compensation payable reinforces the need for the payments to be appropriately allocated to all dependants based on the level of dependence and time of dependence for each recipient as at the member's death. The maximum figure payable can be located in the Compensation & Support reference Library - Payment Rates.

Calculating the Rate of Payment for Other Dependants

When calculating the rate of payment, each case will need to be considered on its own merits. Once the delegate is satisfied that the person meets the eligibility criteria for 'other dependant', they are then required to determine the weekly value of the economic support being provided and apply the figure in accordance with section 263 of the MRCA.

The amount of compensation available to a dependant is determined on a case-by-case basis, taking into consideration:

• any financial loss suffered by the dependant as a result of the veteran’s death;
• the degree to which the dependant was reliant on the deceased veteran; and
• the length of time that the dependant would have been dependent on the veteran.

Any actuarial or conversion methodology applied must be consistent with current legislative instruments and guidance. The Actuary Tables Used For Age Adjusting Lump Sum Payments are available here.

For example, a veteran, prior to death, was making regular payments to a parent to assist with general living expenses. Evidence indicates the payments would have continued but for the veteran’s death. The delegate determines the weekly value of that support and applies the relevant legislative methodology to determine a reasonable lump sum amount within statutory limits.

Whilst the above example is relatively straightforward and will not reflect the often complex nature of ongoing dependency (and the fact that there can be multiple 'other dependants'), it is intended to provide a basic overview of the calculation methodology only.  More complex matters should be referred to the relevant business area or via the Delegate Support Framework for further guidance if required.

Flowchart 

The following image is a flowchart of the steps to be taken in determining whether a person is an 'other dependent' who may be entitled to compensation under the MRCA.