DATE OF ISSUE: 13 SEPTEMBER 1994
PART II DISABILITY PENSIONS - OFFSETS FOR OTHER COMPENSATION
This instruction is to notify the arrangements for limiting the amount of a disability pension granted under Part II of the VEA, to offset compensation paid from another source for the same disability .
Issuing this instruction was delayed because it was intended to include the outcome of a review of the current offsetting arrangements in Section 74. This review is taking longer than expected and its outcome will be advised separately.
Essentially, the existing offsetting provisions in Part IV have now been mirrored in new sections 30A through to 30P in Part II. Limitations on Part II disabilty pensions will be calculated in the same manner used for part IV disability pensions.
Background
Offsetting provisions in respect of Defence and Peacekeeping Service were first introduced in Repatriation legislation 1973. Until now there have been no similar provisions for dual payments of compensation under Part II.
To ensure consistency and fairness, it is necessary to insert similar offsetting provisions
for veterans who receive a Part II Disability Pension. There is now an increasing number of these veterans who, because of continuing service, may become eligible for further compensation for the same condition under the recently introduced Military Compensation Scheme.
Operation of Changes
The new Part II provisions are intended to operate in the same way as they do in Division 4 of Part IV. However, in keeping with principles of plain English legislative drafting, they have been recast in an effort to make them easier to understand and apply.
The changes were contained in the Veterans' Affairs Legislation Amendment Act 1994 (Act No 78 of 1994).
Sections 2 and 3 of the Amendment Act provide that these changes will apply from the date of Royal Assent, which was 21 June 1994. Offsetting calculations will include any relevant payments made on or after that date. The changes will not operate retrospectively and compensation payments or awards made before the date of Royal Assent will be disregarded when considering any offsetting.
Section 3 of the Amendment Act further deals with partial payments and later adjustments to payments for a period commencing before and ending after Royal Assent. In short, only the portion for the time after Royal Assent is to be counted for offsetting.
TONY ASHFORD
NATIONAL PROGRAM DIRECTOR (BENEFITS)