C13/2012 Action to be taken in cases where the outcome of an application for increase in disability pension would be a reduction in pension

Amends DI No.

N/A

Replaces DI No.

N/A

Purpose of Instruction

The purpose of this Departmental Instruction (DI) is to remind delegates of the approach approved by the Repatriation Commission in cases where a client submits an application for increase (AFI) in disability pension under the Veterans' Entitlements Act 1986, but the subsequent investigation of the claim indicates that (whether as a result of an improvement in the condition or the receipt of compensation under another Act) the outcome of the application would in fact be a reduction in pension.

Background

The question of how to deal with claims in relation to which the outcome described above is likely is a long-standing and complex policy and legal issue.  In view of the continuing investigations resulting from the Review of Military Compensation Arrangements (“the MRCA Review”) into possible approaches to the matter of permanent impairment compensation where eligibility exists under multiple Acts, it was considered appropriate to issue a DI to restate the Commission's preferred approach in these cases.

Commission's current position

The policy currently in force around cases involving AFIs leading to a potential reduction in disability pension is based on a decision made by the Repatriation Commission on 7 October 2011.  The Commission's decision was that, until the consideration of possible approaches to the problem following the MRCA Review is complete, no client should be disadvantaged.  In effect, the Commission authorised the withdrawal of claims where a reduction in pension is the likely outcome.

Policy Implications

In accordance with this decision, where a case arises in which the reassessment of a client's pension is likely to result in a reduction, the delegate may advise the client of this probable adverse outcome.  If the client wishes to withdraw the claim, this should be allowed, with no further action to be taken.

Further advice will be provided in the event of any change to this policy in association with the implementation of the outcomes of the MRCA Review.

Contact

The contact officer is Martin Page, A/g Director, Liability and Service Eligibility on
(02) 6289 6309.