You are here

11.3.2 Overpayment recovery from retired persons (Division 2)

Section 416 states that any retiring member who contributes to a Commonwealth Superannuation Scheme and receives (or is entitled to) compensation under the MRCA must provide a witten notice to the MRCC with the following details within 14 days after the person retires:

  • stating that the person has retired; 
  • specifying the date of the retirement; and
  • identifying the Commonwealth Superannuation Scheme which the person contributed to immediately before retirement.

The 14 day period allows the MRCC to make any necessary adjustments to avoid an overpayment to the retiree.

Failure by a retiree to comply with section 416 is an offence of strict liability attracting significant penalties.

In practice, Section 416 only affects persons who are receiving incapacity (for work) payments, or Special Rate Disability Pension (SRDP) under Chapter 4 of the MRCA.

It is important that a person's obligations under section 416 are reiterated whenever a claim for incapacity payment or SRDP is accepted or reviewed.