As an alternative to 'money in', the employee has the option to elect to make repayment in one of two ways:
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lump sum 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 hardship, 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 has received an incorrect overpayment of $100.00 per fortnight for the past 3 months. He was overpaid $600.00. |
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As the employee is not in a financial position to repay the money personally, or from his next benefit payment as a lump sum, he elects to have the amount recovered over subsequent pays from the direct payment system. |
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Offsetting commences at $100.00 per pay until the repayment is fully deducted. |