12.7.2.8 Chapter 25: 7-step example calculation

Chapter 25: 7-step example calculation

Chapter 25 of GARP M provides the 7-step formula for determining transitional permanent impairment claims for veterans with accepted conditions under the MRCA as well as the VEA and / or the DRCA. 

In cases where veterans have accepted conditions arising from different service types, as is common in transitional scenarios, the combined ratings (weighted compensation) formula in Chapter 23 of GARP M will be used to find the CF final in the formula.  An example is as follows:

Following on from the example at Chapter 12.7.4 of the MRCA Transitional Provisions Policy Manual, Warrant Officer Smith has 4 accepted service-related conditions:

  • a mental health condition (A) resulting from MRCA warlike service assessed as 20 impairment points.

    • a lumbar spine condition (A) resulting from VEA warlike service as 10 impairment points.  This condition is also accepted under the DRCA and is therefore treated as warlike.

    • a tinnitus condition (B) resulting from MRCA peacetime service assessed as 10 impairment points.

    • a knee condition (B) resulting from MRCA peacetime service assessed as 10 impairment points. 

 

Step 1: 

Use GARP M to assess, as at the date of the MRCA determination, the combined effect of:

  1. all MRCA conditions, and

  2. all VEA / DRCA accepted conditions 

to work out the resulting compensation that would notionally be payable under MRCA.

Step 1(a) is 35 points using Table 18.1 of GARP M. Step 1(b) is 10 points.  The combined rating of all conditions at Step 1 is 42.

CF (w)               0.461 

CF (p)                0.258

CF (final)          0.380 

CF final is multiplied by the maximum weekly rate under the MRCA to find the notional amount payable under the MRCA for all conditions. 

Please refer to the full Chapter 23 formula in GARP M for more information and Chapter 12.7.4 for a full example of the calculations to find the CF final using the combined ratings (weighted compensation) formula. 

Step 2:             

Assess whether, under GARP M, the MRCA accepted conditions at Step 1(a) contribute at least 5 points to the overall impairment rating.  If yes, go to step 3.

As noted at Step 1 above, the MRCA conditions (Step 1(a)) is 35 points, which is more than a 5-point contribution to the overall points of 42. Therefore, proceed to step 3.

Step 3:             

Work out the amount payable under the MRCA for the VEA / DRCA conditions, referred 

to at step 1, as if those conditions were MRCA conditions.

              CF (w)               0.213

              CF (p)                0.119

              CF (final)          0.120 

CF final is multiplied by the maximum weekly rate under the MRCA to find the

notional amount payable under the MRCA for VEA / DRCA conditions.

Step 4: 

Subtract the dollar amount at step 3 from the dollar amount at step 1.

Step 5:

The amount payable at step 4 is the amount payable, subject to proviso at step 6.

Step 6:

The amount payable cannot take the total of the following payments above the MRCA PI maximum rate:

  1. the amount worked out at step 4; and

  2. the weekly VEA DCP; and

  3. the converted** DRCA lump sum to weekly.

If it does exceed the MRCA PI maximum rate, step 7 applies.

** DRCA permanent impairment lump sums at (c) are converted using the formula in Section 6 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020

Step 7:

The amount payable is equal to the amount at Step 4 minus the MRCA PI ‘excess’.

The MRCA PI ‘excess’ is:

  1. the dollar amount at step 6(b), plus

  2. the dollar amount at step 6(c), minus

  3. the current MRCA PI maximum rate.

 

Source URL: https://clik.dva.gov.au/node/86607