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2.6 Fortnightly Incapacity Payments Redeemed Under Section 137 of the DRCA

Section 137 applies to people referred to as former employees.  Former employees were in receipt of incapacity payments on 1 December 1988, being the commencement date of the DRCA.  This section allows these people, in certain circumstances, to request that their periodic payments be redeemed in favour of a lump sum.  Former employees are eligible to receive incapacity payments past the age of 65 years with this factored into the calculation of the lump sum.  These people are deemed to have been in receipt of the fortnightly equivalent amount as described above, however, the offset on the Disability Compensation Payment is not lifted at age 65, it continues for their entire life.