The following steps demonstrate the method of establishing the notional assessment for a case where pension is assessed at the Special Rate for only one condition.
STEPS | EXAMPLE |
Step 1 - Identify the dollar amount of Disability Compensation Payment paid in respect of the incapacity. | Step 1 - Veteran A receives $1,143.80 (SR) Disability Compensation Payment per fortnight for incapacity from PTSD, the only accepted condition. |
Step 2 - Identify the fortnightly amount of other compensation paid. | Step 2 - Veteran A is also receiving $1,250.60 (gross) incapacity payments per fortnight for PTSD. |
Step 3 - The above two dollar amounts are compared and the lesser is the amount by which the Disability Compensation Payment is offset. | Step 3 - Disability Compensation Payment is fully offset as the incapacity payments exceed the Disability Compensation Payment payable. |
Step 4 - The offset amount is manually entered into Process Direct, Disability Compensation Payment Summary Screen. CPI increases this initial offset amount at the same time as Disability Compensation Payment is increased. | Step 4 - The amount of $1,250.60 is manually entered into Process Direct, Disability Compensation Payment Summary Screen in the ‘Adjustment Amount’ field and ‘PTIV Non-Indexed’ field (if required). By recording the full incapacity payment in the non-index field will prevent small amounts of Disability Compensation Payment being paid should MTAWE be higher than CPI. Note. The non-indexed field is used to record periodic compensation when this amount is less than the notional assessment amount. Indexation then only occurs by manual intervention at variation of DRCA incap, or other periodic payment. |