Calculating the lump sum
If all or part of the bereavement payment is to be paid as a lump-sum, the amount of that lump-sum can be calculated using the equation below:
Bereavement Payment = (98 - D) x (OE - NE)
The elements of this equation are explained in the table below.
|
Element |
Represents |
|
98 |
The maximum number of days in the bereavement period. |
|
D |
The number of days that have elapsed since the date of death. |
|
OE |
The old entitlement, which is the pensioner's daily entitlement of pension on the last day of the last pension period prior to the death of the child |
|
NE |
The new entitlement, which is the pensioner's daily entitlement of pension as reassessed following death of the child. |
Change in rate of child related components
If there would have been any change to the rate of child related components of pension because of indexation or the age of the child, had the child not died, the change of rate should be included in the calculation of the rate payable during the bereavement period.
Identification of bereavement payment for taxation purposes
Where the child related components of pension are incorporated into regular pension payments, the amount representing the bereavement payment is identified as a separate amount only for taxation purposes.