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12.7.3 Taking account of previous MRCA PI lump sums or periodic payments
When a previous MRCA PI lump sum has been paid, the additional amount of PI payable is calculated by converting the lump sum paid to an equivalent weekly amount and subtracting this from the total weekly amount of PI payable at Step 4 or 7 of GARP M, whichever is applicable. When converting the lump sum to an equivalent weekly amount, the delegate is essentially finding the indexed weekly amount the veteran would be receiving now, if they had not converted their payment to a lump sum. This is discussed in more detail in Chapter 5.6.2 of the MRCA PI Policy Manual.
If the person is in receipt of periodic compensation the additional amount of PI payable is calculated by subtracting the previous periodic payment rate from the amount calculated in Step 4 or 7 of GARP M.
Where the client has received both periodic and lump sum MRCA payments, both the converted weekly amount of the lump sum/s and the periodic amount are deducted from the newly assessed rate to determine the additional amount of PI payable.