Last updated: 26 May 2008
Section 53L VEA - Survivors reassessed rate less than rate of couple
Section 53K VEA - Survivors reassessed rate equal or greater than rate of couple
Partnered Pensioner Bereavement Payment
The partner of a deceased pensioner is entitled to a bereavement payment of 98 days entitlement, based on the rate of payment on the last day of the last pension period prior to death. The 98 days entitlement of pension can be paid wholly or partly as a lump sum.
Entitlement of partner of deceased pensioner
In addition to the 98 days entitlement of pension, the partner of a deceased pensioner is entitled to a continuation of his or her pension entitlements, for the duration of the bereavement period, at the rate payable on the last day of the last pension period before his or her partner's death.
Ceiling rate rules during bereavement period
Where the partner of a deceased pensioner is a war widow/er, the ceiling rate rules do apply when calculating the bereavement payment. In cases where both members of a couple are war widow/ers, the ceiling rate will apply in respect of the survivor but the ceiling rate is ignored in respect of the deceased.
Reassessed rate greater than rate last payable to couple
If one member of a couple has a source of income that ceases upon his or her death, the partner may be entitled to a rate of pension as a single person that is equal to or higher than the combined rate payable on the last day of the last pension period before the death.
In this circumstance, the partner of the deceased pensioner is reassessed as a single person from the date of death and payment of a separate lump sum bereavement payment is not necessary.
Lump sum amounts received during the bereavement period
Lump sum amounts received by a partnered pensioner during the bereavement period are held in the pension assessment for 12 months. The date of the event for the commencement of this 12 month period is the day after the bereavement period end (day 99). This date of event then determines the date of effect for the pension change, depending on whether or not notification of the change is received within the allowed notification period.
Summary of payment arrangements
The table below summarises the entitlement of the partner of a deceased pensioner.
|
If the partner's rate, reassessed as a single person, is... |
then the partner of the deceased pensioner.. |
and the bereavement payment.. |
|
less than the combined rate last payable to the couple, |
continues to receive his or her pension entitlement for the duration of the bereavement period, at the rate payable on the last day of the last pension period before the pensioner's death and is then reassessed as a single person, |
|
|
higher than or equal to the combined rate last payable to the couple, |
is paid the reassessed rate from the date of the pensioner's death, |
is contained within those ongoing payments and is identified as a separate amount only for taxation purposes. |
Calculating the lump sum
If all or part of the bereavement payment is to be paid as a lump-sum, the amount of that lump sum can be calculated using the equation below:
Lump-Sum Bereavement Payment = (98 - D) × E
The elements of this equation are explained in the table below.
|
Element |
Represents |
|
98 |
The maximum number of days in the bereavement period. |
|
D |
The number of days that have elapsed since the date of death. |
|
E |
The daily entitlement payable to the deceased person on the last day of the last pension period before his or her death. |
DFISA and partnered bereavement payment calculations
Where the surviving partner is eligible for a bereavement payment, the calculation of that payment is based on the amount of pension or benefit plus any amount of DFISA the deceased was receiving just prior to death.
Bereavement Payments and DFISA