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8.4 Concepts to Explain to a Claimant Affected By Lump Sum Payments
It is important that the following two concepts are clearly explained to veterans or dependants before they accept a lump sum or proceed with a claim or application which is effected by Section 25A:
- The initial offset amount will increase by CPI at the same time as their Disability Compensation Payment is increased and
- The offset is not a repayment of the lump sum and
- The offset will remain on their Disability Compensation Payment for the whole of their life, regardless of how long they live (except for lump sums paid under s30 of DRCA.