'Frozen' benefits

The Act envisaged that eventually, all former employees receiving compensation would receive 70% of their NWE.

Consequently recipients of benefits over 70% NWE had their compensation benefits frozen, until gradual notional increases to NWE meant that the combined benefit being paid would eventually represent 70%.

In terms of a scale, on one side was the top heavy combined benefit and on the other, NWE.  With the NWE rising, but the combined benefit staying the same, eventually the combined benefit would equal its counterpart.

From that point, benefits would commence increasing as the NWE figure increased, to maintain the 70% NWE entitlement.

Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-fourteen-1971-act-claims/part-two-incapacity/transitional-provisions-former-employees/after-01121988/frozen-benefits