The employee has the option to elect to make repayment in one of three ways:
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'money in'. This may be in the form of a lump sum one off payment or may occur over a period of time. 'Money in' as a longer-term repayment method is probably not a preferred option in this overpayment circumstance;
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offset. Depending on the size of the overpayment, offsetting the overpayment in one lump sum amount from the next incapacity payment may not be reasonable;
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periodic offset. In many instances, offsetting over two or three pay periods may be required.
A most reasonable approach, excluding financial difficulty, would be to recoup the overpayment by the same amount as it was initially paid.
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Example |
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An employee received an extra $100.00 per fortnight over 3 months prior to superannuation being paid. He was overpaid $600.00. |
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His Superannuation Fund provided the employee with a pension and lump sum of all backdated amounts. |
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As the employee no longer had the lump sum figure to use as repayment, he elected to have the amount recovered over subsequent pays from the direct payment system. |
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Offsetting commenced at $100.00 per pay until the repayment was fully recouped. |