The following examples demonstrate the effect of multiple interim payments on a person's entitlements based on a single accepted impairment. The examples are based on the following set of information:
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
|
Interim A
|
2-7-2008 |
36 |
18 points |
0 |
0.159 x $275.86 = $43.86 per week |
|
Interim B
|
2-7-2009 |
37 |
30 points |
0 |
0.265 x $286.07 = $75.81 per week |
|
Final
|
2-7-2010 |
38 |
50 points |
3 |
0.509 x $292.08 = $148.67 per week |
Example 1 – Male choosing lump sum, periodic, periodic
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
Election |
|
Interim A |
2-7-2008 |
36 |
18 points |
0 |
A = 0.159 x $275.86 = $43.86 per week $43.86 x 1232.4 = $54,053.06 lump sum
|
Takes lump sum of $54,053.06 |
|
Interim B |
2-7-2009 |
37 |
30 points |
0 |
B = 0.265 x $286.07 = $75.81 per week A1 (current equivalent of Interim A payment) = 0.159 x $286.07 = $45.49 per week $75.81 (B) - $45.49 (A1) = $30.32 per week
|
Takes periodic payment of $30.32 per week |
|
Final |
2-7-2010 |
38 |
50 points |
3 |
Final = 0.509 x $292.08 = $148.67 per week A2 (current equivalent of Interim A payment) = 0.159 x $292.08 = $46.44 $148.67 (final) – $46.44 (A2) = $102.23 per week
|
Takes new periodic payment of $102.23 per week |
In this example (1), the current weekly equivalent of the lump sum taken at Interim A is subtracted before the final calculation of weekly payments.
Example 2 – Male choosing periodic, lump sum, periodic
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
Election |
|
Interim A |
2-7-2008 |
36 |
18 points |
0 |
A = 0.159 x $275.86 = $43.86 per week
|
Takes periodic payment of $43.86 |
|
Interim B |
2-7-2009 |
37 |
30 points |
0 |
B = 0.265 x $286.07 = $75.81 per week A1 = 0.159 x $286.07 = $45.49 per week $75.81 (B) - $45.49 (A1) = $30.32 per week $30.32 x 1218.1 = $36,932.79
|
Takes lump sum of $36,932.79 and continues periodic payment of $43.86 (indexed) per week |
|
Final |
2-7-2010 |
38 |
50 points |
3 |
Final = 0.509 x $292.08 = $148.67 per week ($30.32 ? $286.07) x $292.08 = $30.96 (current equivalent of $30.32) $148.67 (final) – $30.96 = $117.71 per week
|
Takes new periodic payment of $117.71 per week |
In this example (2), the weekly equivalent of the lump sum taken at Interim B is subtracted before the final calculation of weekly payments.
Example 3 – Male choosing lump sum, periodic, lump sum
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
Election |
|
Interim A |
2-7-2008 |
36 |
18 points |
0 |
A = 0.159 x $275.86 = $43.86 per week $43.86 x 1232.4 = $54,053.06 lump sum
|
Takes lump sum of $54,053.06 |
|
Interim B |
2-7-2009 |
37 |
30 points |
0 |
B = 0.265 x $286.07 = $75.81 per week A1 = 0.159 x $286.07 = $45.49 per week $75.81 (B) - $45.49 (A1) = $30.32 per week
|
Takes periodic payment of $30.32 per week |
|
Final |
2-7-2010 |
38 |
50 points |
3 |
Final = 0.509 x $292.08 = $148.67 per week A2 = 0.159 x $292.08 = $46.44 $148.67 (final) – $46.44 (A2) = $102.23 $102.23 x 1221.5 = $124,873.94 $124,873.94 – (52 weeks x $30.32) = $123,297.30
|
Takes lump sum of $123,297.30 ($124,873.94 minus Interim B already paid as periodic payments). Periodic payments will cease. |
In this example (3), the weekly equivalent of the lump sum taken at Interim A is subtracted before the final calculation of weekly payments, which is converted to a lump sum. Also, the equivalent of the periodic payments paid for the 52 weeks between July 2009 & July 2010 is subtracted from the final lump sum calculation.
Example 4 – Male choosing periodic, periodic, lump sum
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
Election |
|
Interim A |
2-7-2008 |
36 |
18 points |
0 |
A = 0.159 x $275.86 = $43.86 per week
|
Takes periodic payment of $43.86 |
|
Interim B |
2-7-2009 |
37 |
30 points |
0 |
B = 0.265 x $286.07 = $75.81 per week
|
Takes new periodic payment of $75.81 per week |
|
Final |
2-7-2010 |
38 |
50 points |
3 |
Final = 0.509 x $292.08 = $148.67 per week $148.67 (final) x 1221.5 = $181,600.41 $181,600.41 – (52 weeks x $43.86 (A) + 52 weeks x $75.81 (B)) = $175,377.57
|
Takes lump sum of $175,377.57 ($181,600.41 minus total of Interim A & B already paid as periodic payments). Periodic payments will cease |
In this example (4), the final assessment of weekly payments is converted to a lump sum.
Example 5 – Male choosing periodic, lump sum, lump sum
|
Payment |
Date |
Age |
Impairment |
Lifestyle |
Calculation (warlike/non-warlike) |
Election |
|
Interim A
|
2-7-2008 |
36 |
18 points |
0 |
A = 0.159 x $275.86 = $43.86 per week |
Takes periodic payment of $43.86 |
|
Interim B
|
2-7-2009 |
37 |
30 points |
0 |
B = 0.265 x $286.07 = $75.81 per week A1 = 0.159 x $286.07 = $45.49 per week $75.81 (B) - $45.49 (A1) = $30.32 per week $30.32 x 1218.1 = $36,932.79 |
Takes lump sum of $36,932.79 and continues periodic payment of $43.86 (indexed) per week |
|
Final
|
2-7-2010 |
38 |
50 points |
3 |
Final = 0.509 x $292.08 = $148.67 per week ($30.32 ? $286.07) x $292.08 = $30.96 (current equivalent of $30.32) $148.67 – $30.96= $117.71 per week $117.71 x 1221.5 = $143,782.76 $143,782.76 – (52 weeks x $43.86 (A) + 52 weeks x $45.49 (1)) = $139,136.56 |
Takes lump sum of $139,136.56 ($143,782.76 minus the total of Interim A already paid as periodic payments). Periodic payments will cease |
In this example (5), the current weekly equivalent of the lump sum taken at Interim B is subtracted from the final calculation of weekly payments, which is converted to a lump sum. The final lump sum calculation also takes account of the periodic payments which were paid for 52 weeks at the 2008-2009 rate and 52 weeks at the 2009-2010 rate.
Ceasing periodic payments: In examples 3, 4 and 5, the person's periodic payments effectively cease. This is due to the final amount being converted to a lump sum. The 'special circumstances' provision in section 78(4) would need to be used to allow the person to choose to convert to a lump sum all PI compensation payable to them that has not previously been converted to a lump sum.
This provides additional flexibility to the claimant, otherwise, the amount that could be converted would be limited to the difference between the interims paid and the final assessment.