Once the total DCBP is calculated, the payment is paid to the surviving spouse (for couples) or to the estate (for singles).
DCP payable in the pension period of a veteran's death
From 1 July 2026, VEA subsection 121(4) is subjected to the exception in new subsection 121(4AA), which allows the DCP to be paid to the date of death to estate.
Where there is a delay in notifying the Department of a veteran's death, the Department may not have the opportunity to cease the DCP before it is released, resulting in a small overpayment of DCP for the relevant pension period.
Recovering overpaid DCP
The following table illustrates how delegates should deal with amounts of overpaid DCP from the pension period of a veteran's death and for any pension period following the death of the veteran. Note that overpaid DCP must not be recovered from a surviving spouse's DCBP unless express consent is provided.
| If... | And... | And... | Then... |
| The DCP in the pension period of the veteran's death or for any pay periods following the death is paid before it can be stopped | There is a surviving spouse | The Executor of the Estate does not give the Department consent to recover overpaid DCP from the DCBP | The full DCBP must be calculated and paid to the surviving spouse. The Department may recover the overpaid DCP from the veteran's estate. |
| The DCP in the pension period of the veteran's death or for any pay periods following the death is paid before it can be stopped | There is a surviving spouse | The Executor of the Estate does give the Department consent to recover overpaid DCP from the DCBP | The Department may recover the overpaid DCP from the surviving spouse's DCBP and pay the balance to the surviving spouse. |
| The DCP in the pension period of the veteran's death or for any pay periods following the death is paid before it can be stopped | There is a surviving spouse | The DCP was being paid to a residential care facility | The full DCBP must be calculated and paid to the surviving spouse. The Department may recover the overpaid DCP from the residential care facility. |
| The DCP in the pension period of the veteran's death or for any pay periods following the death is paid before it can be stopped | The veteran is single | The overpaid DCP is deducted from the DCBP and the difference is paid to the veteran's estate. | |
| The DCP in the pension period of the veteran's death or for any pay periods following the death is paid before it can be stopped | The veteran is single | The DCP was being paid to a residential care facility | The full DCBP must be calculated and paid to the veteran's estate. The Department may recover the overpaid DCP from the residential care facility. |
Other Payments and Supplements
VEA
Currently, subsection 121(4) of the VEA provides that a pension is not payable in relation to the pension period in which the person died. Subsection 121(7) of the VEA provides that a pension includes an energy supplement under 62A or 62B, veterans supplement under Part VIIA, or a VEA allowance other than loss of earnings allowance. Therefore, subsection 121(4) of the VEA currently prevents the payment of DCPs (noting the exception at the new 121(4AA)), energy supplements, veterans' supplement or VEA allowances (other than loss of earnings allowance), for the pension period in which a person dies.
MRCA
The MRCA is not specific about when payment of supplements or allowances ceases when a veteran dies.
Therefore, the policy is that those in receipt of a supplement under the MRCA such as MRCA Supplement or Energy Supplement linked to the payment of PI periodic payments, SRDP or ADA would be paid up to the date of death in line with the primary payment they are linked to.
Prisoner of war recognition and decoration supplement would also be payable to date of death in line with other MRCA periodic payments.
Bereavement Payments - Reductions and Recovery
VEA
Where the VEA payment (e.g. DCP) has been paid beyond the date of death, resulting in an overpayment, subsection 205(2) allows recovery of the overpaid amount. The overpayment can be required from the DCBP of the surviving spouse but only if the surviving spouse agrees to this course of action.
Otherwise, steps would need to be taken to recover any such amounts from the late veteran's estate.
| If there is an overpayment... | |
| And... | Then... |
| The surviving spouse has given consent to recover | Recover the overpayment from the DCBP. |
| The surviving spouse has not given consent to recover | Recover the overpayment from the estate of the late veteran. |
| The surviving spouse has not given consent to recover | Attempt to recover the overpayment from the estate. If unable, pursue usual steps of recovery such as write off or waiving the debt. |
MRCA
Please refer to CLIK Compensation & Support Policy Library 7.10 for further information on what DVA overpayments may reduce the amount of Bereavement Payment payable or overpayment amounts that can be recovered from DVA Bereavement Payments.