Impact of prior compensation for incapacity to work
During the period a person is being compensated for incapacity for work, by one of the following payments:
- [glossary:T&PI:Def Special Rate (T&PI)] under the VEA
- TTI under the VEA
- intermediate rate under the VEA
- loss of earnings allowance under the VEA
- temporary incapacity allowance under the VEA
- incapacity payments under SRCA
that person cannot be compensated for subsequent incapacity to work from another condition, as the person has lost the capacity to work and cannot suffer a further loss of capacity due to another condition. [Dawkins v Metropolitan Coal (1947)]
In practice this means a person cannot receive T&PI under the VEA for one condition and incapacity payments under the SRCA for another condition. A person may receive intermediate rate for one condition and incapacity payments for another condition, however the SRCA provides that the partial capacity to work be taken into account when calculating the rate of incapacity payments payable.
Offsetting earnings-related payment and incapacity payment
A person can receive an earnings-related payment under the VEA and incapacity payments under the SRCA for the same incapacity, with the VEA offsetting provisions applied to the disability pension. The method for calculating the offset amount is identical to that applied to General Rate pensions, except for where section 25A VEA applies. That is the but for rule method.