8.2.5 Reductions to DVA Bereavement Payments and Recovery of Overpayments from DVA Bereavement Payments

The tables below show which DVA Bereavement Payments may be reduced or utilised to repay existing overpayments and provides the legislative provisions and policy position in regard to the consent that is required to recover overpayments from each of the DVA Bereavement Payments.

The overarching policy position can be stated as follows:

• Although there is legislative authority in some cases to recover overpayments from the Bereavement Payment of a surviving spouse with their consent (for example from the Disability Compensation Payment Bereavement Payment), as a matter of policy no attempt should be made to recover the overpayment from the Bereavement Payment of the surviving spouse and the surviving spouse should not be approached in this regard.
• The debt belongs to the Estate of the deceased and, provided it is an appropriate course of action, recovery in the first instance should be sought from the Estate.
• However, where there is legislative authority to do so (e.g. for a single veteran), recovery can be made directly from the Bereavement Payment before it is paid to the Estate.

• Where an Estate does not exist because the veteran dies intestate, the delegate should consider waiving the debt.

   

MRCA - Bereavement Payments: based on incapacity payments, SRDP and PI

*Other Acts include the MRCA, VEA and the Social Security Act 1991 (SSA)

Please Note:

• Where the incapacity/PI/SRDP payment has been paid beyond the date of death, resulting in an overpayment, subsection 425(2) precludes recovery of the overpaid amount from any entitlement to bereavement payments. However, the debt exists and is recoverable against the estate of the deceased member or former member. 
• For existing overpayments of MRCA or for any existing overpayments under any other Act, recovery is sought from the Estate.

VEA – Disability Compensation Bereavement Payment (DCBP)

*Other Acts include the MRCA, VEA and the Social Security Act 1991 (SSA)

Please Note:

• Single Veteran – The overpaid DCP released after the death can deducted from the DCBP and balance paid to Estate, as per section 205(2)(c) of the VEA. This also applies for other overpayments under the VEA. Existing overpayments under any other Act, may only be recovered from the Estate.  

VEA – Income Support Bereavement Payment (ISBP)

*Other Acts include the MRCA, DCRA, VEA and the Social Security Act 1991 (SSA)

Please Note:

• Members of a couple - Overpaid Income Support under the VEA or SSA in the pension period of a veteran’s death or made following the veteran’s death when there are delays in notifying DVA may be result in a recalculation of the ISBP – see section 53NAA(e) of the VEA.
• Members of a couple - Existing overpayments under the VEA, SSA and overpayments of compensation under the MRCA listed at Section 205(1) and (1AB) should be recovered the Estate. 
• Single Veteran – The overpaid Income Support released after the death can be deducted from the ISBP and balance paid to the Estate. Existing overpayments under the VEA can be recovered from the ISBP, as per section 205(2)(c) of the VEA. Overpayments under other Acts must be recovered from the Estate.