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2.7.1 Loss of basic eligibility

2.7.1.1Loss of basic eligibility for Disability Compensation Payment (DCP) can occur where it becomes apparent that a veteran granted DCP in respect of a war-caused, or defence-caused injury or disease does not actually suffer from the particular disability.

2.7.1.2For example, where DCP is granted at the intermediate rate (section 23 VEA) or at the special rate (T&PI) (section 24 VEA) on the basis of a false statement or misrepresentation made by the person. This may include where it is established that a special rate pensioner has been working for periods aggregating more than 8 hours per week.

2.7.1.3An overpayment of DCP may also arise where a temporary payment continues to be paid beyond the appointed period - e.g. failure to reduce temporary payment at special rate to a lower percentage rate. This would normally be caused by administrative error and waiver of the overpaid amount would be considered (refer to this manual's Section 2.6.4 Administrative Overpayments).

Note: Waiver of DCP overpayments should be considered under the same conditions as those for income support overpayments. Please refer to this manual's Section 7.18 Waiver for guidelines.