Last amended: 12 April 2012
Subsection 17(3) of the SRCA provides for a single lump sum that is divided among dependants of the deceased employee as a death benefit. The SRCA gives a Delegate the discretion to divide and disburse the lump sum as appropriate to the circumstances of the case. In practice most SRCA lump sums are paid to a spouse and dependent children. The apportionment of the lump sum is a policy issue with lump sums to children being paid into an administered fund until the child reaches 18 years. For the purposes of compensation offsetting the whole of the lump sum, irrespective of whether it is shared between more dependants or paid to one dependant is converted into a single fortnightly equivalent and offset against the relevant DVA pension/s.
Offsetting Provisions When Pension is Payable to More Than One Dependant
Where a pension is payable to more than one dependant under the VEA, the payment of the widow/er is preferred over a dependent child. Subsections 30C(8) - 30C(12), 30D(5) - 30D(8), and 74(9) - 74(12) of the VEA define the rank in which a pension should be reduced to nil by compensation offsetting as follows:
- The younger child
- The older child
- The war widow/er