When is a notional assessment required?
When disability pension is paid in respect of the incapacity from several conditions, a notional assessment is required to ascertain what portion of the disability pension is paid in respect of the compensable condition.
The but for rule
The method for calculating this notional assessment is based on a but for rule. The first step is to calculate the rate of disability pension that would be paid to the veteran but for the incapacity of the compensable condition. This requires assessing a degree of incapacity under GARP, excluding the compensable condition. Compare this rate to the actual degree of incapacity. The difference between these two rates is the portion of disability pension paid in respect of the incapacity for the compensable condition.
Several accepted conditions for the same body system
Chapter 19 of GARP explains how to apply partially contributing impairment when judging the relative contribution of a compensable condition to the medical impairment points awarded for several accepted conditions affecting the same body system.
Calculating a notional assessment
The following table provides the three steps to calculate a notional assessment.
|
Step |
Action |
Example |
|
1 |
Identify the degree of incapacity determined by the Delegate in respect of all war and defence caused injuries and diseases. |
Veteran A receives 70% disability pension per fortnight for incapacity for lower back and hearing loss. The degree of incapacity determined by the Delegate is 70. |
|
2 |
Using the but for rule, calculate the degree of incapacity, which would be awarded, if the incapacity for the compensable condition were excluded from the GARP assessment. Note: When applying the conversion table in Chapter 23 of GARP, adopt the highest lifestyle rating in the shaded area for the level of medical impairment. |
Excluding the lower back incapacity, the impairment points would be 5 combined with a lifestyle rating of 1 (the highest of the shaded area) which converts to degree of incapacity of 10. |
|
3 |
Subtract the figure at step 2 from the figure at step 1. The result represents the rate of disability pension paid in respect of the compensable condition. Note: It is possible that the rate of disability pension paid in respect of the incapacity for which the other compensation has been paid is negligible, ie NIL. |
70 less 10 equals 60 as the degree of incapacity awarded for the lower back condition. Therefore, the rate of disability pension paid in respect of incapacity from lower back condition is 60%. |