Where a payment is made by way of compensation or damages the method of calculating the overpayment is described in ss 74(3)(c) & (d) and ss30C (1) to (3).
STEP | ACTION |
1 | Calculate the amount to be offset and the date of effect of the offset. |
2 | Calculate the overpayment by multiplying this offset amount by the number of paydays between the pension effective date and the first available (advance) payday from when a regular offset will commence. |
3 | This is the amount to be recovered from any amount of other compensation to be paid. |
Note 1 – Section 115 in the DRCA allows for the recovery of overpaid Disability Compensation Payments from compensation payable under DRCA. Section 115 does not allow for recovery of AGR Disability Compensation Payments or allowances offset as a result of s25A of the VEA.
Note 2 –Indexation of a fortnightly equivalent does not begin until after the first regular payday from when the offset is put in place.