﻿ Example 4 - Single Service Pensioner on Reduced Rate due to Non-financial Assets | Compensation and Support Reference Library, Overpayment Management Manual, Ch 7 Recovery and Other Methods of Finalising Debts , 7.21 Examples

# Example 4 - Single Service Pensioner on Reduced Rate due to Non-financial Assets

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A single service pensioner on reduced rate of service pension (due to non-financial assets). No other income.

 Reduced rate Service pension \$50.00 Total \$50.00
##### Calculation
 Step Action 1 Calculate the total income from all sources. Write the total income at (a) (a) \$50.00 2 Is the amount at (a) ? the maximum basic rate (MBR)? If yes, write the MBR at (b) if no, copy (a) to (b) (b) \$50.00 3 Multiply (b) by 14% and copy (c) (c) \$7.00 4 Is the amount at (a) ? MBR? If yes, write \$0 to (d) If no, subtract the MBR from (a), and write the amount to (d) (d) \$0.00 5 Is the amount at (d) ? the income free area (IFA)? if yes, copy the IFA to (e) if no, copy (d) to (e) (e) \$0.00 6 Multiply (e) by 55% and write the amount at (f) (f) \$0.00 7 Is the amount at (d) ? IFA? If yes, write \$0 to (g) If no, subtract the IFA from (d), and write the amount to (g) (g) \$126.80 8 Multiply (g) by 27.5% and write the amount at (h) (h) \$0.00 9 Add up the amounts at (c), (f) and (h) to determine the formulated rate. \$7.00

Thus the Limitation Rate (rounded down to the nearest dollar) is \$7.00 per fortnight.