External

The hard copy SRC Act dated September 1997 should be used to assist with recovery of superannuation overpayments, as it reflects recent changes to the legislation.  Past hard copy Acts should therefore not be used.

Overpayment of compensation is common when superannuants retire. Compensation continues to be paid at the pre superannuation rate while the employee's superannuation fund calculates the superannuation entitlement.

Once a superannuation payment is made, it is backdated to the date of effect of retirement.  This then overlaps with the higher compensation rate that has been paid to the employee.

Consequently, an overpayment of compensation occurs.

Retain copies of all communication on the claim file and/or PRACSYS.

  •       Be alert to situations where retirement is imminent.
  •       Create diaries as reminders to follow up issues with the employer about:
  •      a date of retirement; and
  •      the name of the superannuation fund used by the employee.
  •       Do not reduce the employee's compensation entitlement.
  •       Contact the fund and employee using letters at Appendices 12 and 13.
  •       Add comments to PRACSYS about the commencement of recovery action through the fund.
  •       Create a diary to be generated the following month as a reminder to follow up any fund responses.
  •       Note the following things from the response from the fund:
  •      whether payment has already been received by the employee2;
  •      if payment has been deferred3;
  •      how the employee elected to have superannuation monies paid;
  •      the specific amounts of superannuation, and how they are split between employee and Government (or Employer) components; and
  •      the date payment commenced.
  •       Using the date of retirement (or date superannuation payment commenced if different), calculate the correct entitlement and any overpayment.
  •       Notify the fund within two working days of when the fund provided superannuation details about the overpayment.  The letter at Appendix 14 should be used.
  •       Concurrently, advise the employee about the amount of the overpayment and how recovery is being undertaken.  The letter at Appendix 15 should be used.
  •       Set up the PRACSYS superannuation fund details using the 'Change Employee Super Details function in Claims Management.
  •       Alter existing incapacity records to take into account superannuation.  This will automatically generate the overpayment recovery account.
  •       Activate the recovery record and indicate in comments that the overpaid monies have been requested from the fund.  The scheme of arrangement must be entered.  It will be 'money in'.
  •       Create a diary to be generated within the next month to check progress on cheque receipt from the fund.