<Employee name>
Dear <Employee title and surname>
Your employer has advised that you have ceased your employment and are entitled to a superannuation benefit from the <name of superannuation fund>. The purpose of this letter is to advise you of the necessary steps required to redetermine your compensation entitlement.
Pursuant to section 114 of the Safety, Rehabilitation and Compensation Act 1988 (the Act), Comcare is obliged to now write to your superannuation fund requesting details about how you have elected to have your superannuation benefit paid. This will, in turn, affect your compensation entitlement.
As the Act specifies that Comcare cannot reduce your compensation payment while seeking information from your superannuation fund, it is likely that an overpayment of compensation will occur.
When an employee leaves the Commonwealth and is entitled to a superannuation benefit, this must be taken into account where concurrent payments of compensation are made.
However, until the amount of the superannuation benefit is known, compensation payments must remain at their previous level. Once details are received from the fund, a backdated determination is then made, taking into account the following:
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75% of your normal weekly earnings; less
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superannuation.
While the specific formula used to calculate your new compensation payment will rely on how you have elected to have your superannuation paid, in all cases except where superannuation is not payable, your compensation payment will reduce, creating an overpayment for the period between the date of separation from employment and the date that superannuation advice is received.
The Act provides that your superannuation fund is to pay the amount of the overpayment of compensation direct to Comcare from payments of superannuation as follows:
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if the amount of any payment of pension/lump sum that would have been made is less than or equal to the adjusted overpayment, that amount is to be paid to Comcare instead of to you; or
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if the amount of any payment of pension/lump sum that would have been made is greater than the adjusted overpayment, so much of that amount as is equal to that of the overpayment is to be paid to Comcare instead of to you. Any residual amount is then paid to you.
The Act further provides that the superannuation fund must comply with the requirements of section 114B, despite the provisions of relevant superannuation legislation.
Please note that, in circumstances where superannuation has already been received by an employee, we are required to seek recovery of the overpayment from the employee rather than his or her fund.
Therefore, if you have already received your superannuation benefit, you will need to contact me as soon as possible to arrange for repayment of any overpaid compensation.
I would be happy to discuss this letter with you. Please contact me on <phone number> if you would like clarification on any issues this letter may have raised.
Yours sincerely
<Claims Manager>
Comcare
<Date>