﻿ 4.8 Guidelines for Apportioning the Lump Sum | Military Compensation SRCA Manuals and Resources Library, Death Handbook, Ch 4 Determining SRCA/ADB Lump Sum Entitlements

# 4.8 Guidelines for Apportioning the Lump Sum

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Last amended
13 August 2021

It is recognised that apportioning the lump sum based on individual calculations for each claim will produce quite variable decisions between claims.  In order to produce some consistency and fairness the following guidelines may be followed:

• Spouse: Should generally not get less than 75% of the lump sum.  If there is only a dependent spouse they will receive 100% of the lump sum.
• Children (when there is also a spouse):
• The sum of the compensation for all dependants other than the spouse, should generally not exceed 25% of the total of the lump sum.
• A wholly dependent child should not receive less than 5% of the lump sum (in most situations). For example: if there are more than 6 wholly dependent children then 25% of the lump sum would be split between the 6 children.
• A partly dependent child should not receive more than a wholly dependent child.
• Children (when there is no spouse):
• A partly dependent child should not receive more than a wholly dependent child.
• Dependants (other than a spouse or child): should not receive more than a wholly dependent child.

There may be cases where a spouse is not wholly dependent on the deceased veteran. In such cases the percentage portions of the lump sum outlined in the above guidelines should be varied according to the dependency of each dependant.

For example;

At the time of death, a veteran was separated from their legal spouse and also had four dependant children. Two of the children lived with the veteran, while the other two lived with the veteran's spouse.

In this case, the spouse has been assessed as partly dependent along with the two children not living with the veteran at the time of death, while the two children living with the veteran are assessed as wholly dependent dependants.  The whole S17(3) payment would be distributed amongst the eligible dependants (including the spouse) based on their dependency.

Delegates have the discretion to determine the distribution of the death lump sum between dependants as they see fit.   Delegates will need to clearly outline the reasons for how the lump sum is apportioned.