Coding periodic compensation payments and raising debts 117-03010020

If the compensation claim in CMS is:

• open (active)
• select the incident to view the current rate of compensation income
  Note: STP Paid Leave - Worker's Compensation income can be viewed on the STP Employer Wage Items (EMGI) screen in Process Direct
• go to Step 2
• closed, no periodic compensation is currently recorded, or action cannot be completed for another reason, go to Step 10

To:

• change existing ongoing rate of periodic compensation, go to Step 3
• stop ongoing periodic compensation, go to Step 6
• stop ongoing periodic compensation from a future date, go to Step 9

Go to Compensation Management Summary in Workspace and select:

• Periodic payments
• the relevant Claim ID
• Change Details under Ongoing Details

The following fields will display in edit mode, however some can only be changed by Compensation Recovery Team (CRT) staff:

• Compensation Payer Incident Reference ID, key the compensation payer’s reference number if required
• Incident after CAP grant, can only be changed by CRT:
• Yes, treat as ordinary income
• No, treat as direct deductions
• Compensation paid in Australian currency, defaults to 'Yes'. If the change is for a Foreign Periodic Compensation claim, refer to CRT for action, go to Step 10
• Change To Date and From Date:
• To Date: end date the previous rate and add a line for new details
• From Date: the actual date the rate changed
• Leave the end date blank
• Gross Amount: the gross rate of the periodic payments
• Payment Frequency: select from the dropdown box
• Reason ceased: select from the dropdown box
• Recipient Assessment/Pension Rate and Recipient Assessment CAP Qualified: can only be changed by CRT. See Resources page for coding
• Complete Source and Receipt date
• Select Continue, the Assessment Results (AR) screen will display any positive or negative adjustments

If an arrears payment has been created:

• determine if arrears are payable. See Payment of arrears after reassessment and stopping a payment
• adjust or suppress arrears, if required

Will customer and/or partner’s CAP be rejected, cancelled or reduced?

• Yes,
• make genuine attempts to contact the customer and any affected party prior to finalising the activity. See Advising verbally of an unfavourable decision
• there are language and interpreter services available for customers who may need an immediate telephone interpreter or indigenous language interpreter. See Interpreter Services
• record details of each contact attempt on a DOC
• go to Step 5
• No,
• select Finalise
• if the AR screen does not show the option to Finalise, go to Step 5
• record the details of the update on a DOC
• procedure ends here

If the AR screen does not show the option to Finalise

• select the started activity on the Activity List (AL) screen
• go to the CMMAR screen
• press [Enter] until AR presents
• select Finalise
• select Continue

Has a debt been created?

• Yes, record the details of the update on a DOC and transfer the debt shell to Compensation Recovery region code CTN
• No, record the details of the update on a DOC

Procedure ends here.

Before stopping ongoing periodic payments:

• the customer must provide a reason why the payments have stopped to ensure they are not in breach of section 1166. See the Resources page of Reasonable action to claim compensation
• if it’s not clear why the payments have stopped, complete a Periodic compensation update required Fast Note for the Compensation Recovery Team (CRT) to investigate further, go to Step 10
• ask the customer to provide supporting documents, for example, a letter from the compensation payer advising payments have ceased, the reason and showing the date they were paid up to and including
• scan supporting documents to the customers record

Go to Compensation Management Summary in Workspace:

• Select:
• Periodic Payments
• relevant Claim ID
• Change Details under Ongoing Details
• Update the following fields:
• To Date: date compensation was paid up to and including
• Reason Ceased: select from the dropdown box
• Complete Source and Receipt Date
• Select Continue, the Assessment Results (AR) screen will display any positive or negative adjustments

If an arrears payment has been created:

• determine if arrears are payable. See Payment of arrears after reassessment and stopping a payment
• adjust or suppress arrears, if required

Select Finalise and Continue, the CMS screen will display.

If the AR screen does not show the option to finalise:

• select the started activity on the Activity List (AL) screen
• go to the CMMAR screen
• press [Enter] until AR presents
• select Finalise and Continue

Record details on a Fast Note.

Procedure ends here.

Periodic compensation coding cannot be completed for a future end date. Set a review to code the periodic compensation end date the day after the payments stop.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: CMM
• Review Reason: FOR
• Due Date: day after periodic payments are due to stop
• Source: INT
• Date of Receipt: today's date
• Notes: 'Periodic payments paid up to DD/MM/YYYY'
• Keywords: CMM0054
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: CTN

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. Record all action taken on Periodic compensation update required Fast Note.

Scan any supporting documents to customer record, for example, a letter from compensation payer advising payments have ceased.

Procedure ends here.

Create a Fast Note requesting that Compensation Recovery Team (CRT) assess the new periodic payments. Use Fast Note – select Auto text, use Compensation > Referral to Compensation Team > Periodic compensation update required.

Include:

• Source: Where has the information come from
• Date of Receipt: date of the 'Source' document or information was received
• Reason: enter comments on why this has been referred rather than being completed in the first instance. for example:
• CMS record is closed
• no periodic payments previously recorded
• compensation coding cannot be completed for another reason

Scan supporting documents to the customer record, for example:

• Compensation and damages (Mod C)
• letter from the compensation payer advising payments have commenced, changed or ceased
• Compensation remittance/Payment advice

Procedure ends here.

If the compensation claim in CMS has a status of:

• closed, go to Step 2
• active, go to Step 3

To reactivate a closed compensation claim, see Reactivating a compensation claim.

Once the claim is active, go to Step 3.

To:

• change existing ongoing periodic compensation, go to Step 4
• stop ongoing periodic compensation, go to Step 6
• correct the record where compensation has been declared as earnings, go to Step 9
• add new ongoing periodic compensation, go to Step 10
• add new arrears of periodic compensation, see Table 3
• code foreign periodic compensation, go to Step 13
• code arrears from a retrospective rate increase, see Table 3

Go to Compensation Management Summary in Workspace and select:

• Periodic Payments
• the relevant Claim ID
• Change Details under Ongoing Details

The following fields will appear in edit mode and can be changed:

• Compensation Payer Incident Reference ID: key the compensation payer’s reference number if required
• Incident after CAP grant:
• Yes, treat as ordinary income
• No, treat as direct deductions
• Compensation paid in Australian currency: defaults to 'Yes'. If 'No' is selected, go to Step 13
• Change To Date and From Date:
• To Date: end date the previous rate and add a line for new details
• From Date: the actual date the rate changed
• Leave the end date blank
• Gross Amount: the gross rate of the periodic payments
• Payment Frequency: select from the dropdown box
• Reason ceased: select from the dropdown box
• Recipient Assessment/Pension Rate and Recipient Assessment CAP Qualified, see Resources page for coding
• Complete Source and Receipt date
• Select Continue, the Assessment Results (AR) screen will display any positive or negative adjustments

Determine if any arrears or calculated debt are correct. Consider adjusting the AR screen, taking into account any previously suppressed arrears for the same period.
See:

• Payment of arrears after reassessment and stopping a payment, or
• Explaining and actioning negative adjustments on the Assessment Results (AR) screen

If a debt is expected but is not created within the AR screen, a manual debt shell may need to be created.

Is the assessment result, including any calculated debt correct?

• Yes, see Table 4, Step 4
• No, see Table 4, Step 1

Periodic compensation coding cannot be completed for a future end date. Set a review to code the end date the day after the payments stop.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: CMM
• Review Reason: FOR
• Due Date: day after periodic payments are due to stop
• Source: INT
• Date of Receipt: today's date
• Notes: 'Periodic payments paid up to DD/MM/YYYY’
• Keywords: CMM0054
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: CTN

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. Record all action taken on Compensation Progress Doc Fast Note.

Before stopping ongoing periodic payments:

• ask the customer the reason why payments have stopped to ensure they are not in breach of section 1166. See Resources page of Reasonable action to claim compensation
• ask the customer to provide supporting documents, showing the date they were paid up to and including

Go to Compensation Management Summary in Workspace:

• Select:
• Periodic Payments
• relevant Claim ID
• Change Details under Ongoing Details
• Update the following fields:
• To Date: with the date compensation was paid up to and including
• Reason Ceased: select from the dropdown box
• Complete Source and Receipt Date
• Select Continue, the Assessment Results (AR) screen will display any positive or negative adjustments

If an arrears payment has been created:

• determine if arrears are payable. See Payment of arrears after reassessment and stopping a payment
• adjust or suppress arrears, if required

Select Finalise and Continue, the CMS screen will display.

If the AR screen does not show the option to finalise:

• select the started activity on the Activity List (AL) screen
• go to the CMMAR screen
• press [Enter] until AR presents
• select Finalise and Continue, the CMS screen will display

Staff must:

• investigate if there is a breach of section 1166
• consider if preliminary notice is required to be issued
• record details on a Fast Note

Procedure ends here.

If a customer has reported compensation income as employment income:

• correct the earnings prior to recording any periodic payments. See Recording and correcting employment income details

If an arrears payment is created:

• supress the arrears. See Payment of arrears after reassessment and stopping a payment

Record all earnings changes on a DOC.

If a customer and/or partner are only claiming or renewing a Low Income Health Care Card (LIC), record periodic payments on CMS. Income is assessed over an 8 week period for Low Income Health Care Cards.

Where a customer and/or partner have claimed or received a Compensation Affected Payment (CAP), record periodic payments.

• If periodic payments commenced before the start date or date of lodgement of claim for CAP, record:
• from the start date of CAP, or
• from the date of lodgement of claim, or
• from an earlier date if backdating provisions apply. See Backdating provisions for claim lodgement
• If periodic payments commenced after the start date or date of lodgement of a claim for a CAP, record:
• from the date periodic payments commenced
• If further information is required to confirm historic periodic compensation payments:
• request the required information. See Actioning a compensation clearance for information on requesting compensation information
• code current periodic compensation from date paid to plus one (DPT+1) of the CAP

Go to Compensation Management Summary in Workspace and select:

• Periodic Payments
• relevant Claim ID
• Add New Ongoing Details

The following fields will appear in edit mode and can be changed:

• Compensation Payer Incident Reference ID: key the compensation payer’s reference number if required
• Incident after CAP grant:
• Yes, treat as ordinary income
• No, treat as direct deductions
• Compensation paid in Australian currency: defaults to 'Yes'. If 'No' is selected, go to Step 13
• Change To Date and From Date:
• To Date: end date the previous rate and add a line for new details
• From Date: the actual date the rate changed
• Leave the end date blank
• Gross Amount: the gross rate of the periodic payments
• Payment Frequency: select from the dropdown box
• Reason ceased: select from the dropdown box
• Recipient Assessment/Pension Rate and Recipient Assessment CAP Qualified, see Resources page for coding
• Gradual return to work: defaults to ‘No’. Change to ‘Yes’ and add the relevant start date if required
• Complete Source and Receipt date
• Select Continue, the Assessment Results (AR) screen will display any positive or negative adjustments

Determine if any arrears or calculated debt are correct. Consider adjusting the AR screen, taking into account any previously suppressed arrears for the same period.
See:

• Payment of arrears after reassessment and stopping a payment, or
• Explaining and actioning negative adjustments on the Assessment Results (AR) screen

If a debt is expected but is not created within the AR screen, a manual debt shell may need to be created.

Is the assessment result, including any calculated debt correct?

• Yes, see Table 4, Step 3
• No, see Table 4, Step 1

Components of foreign payments may not be compensation and must be coded elsewhere, for example:

• on the Foreign Income/Asset Details (FID) screen, enter family allowance components of Italian INAIL payments as Type 'OIN'
• see Foreign income and assets

Make sure the Compensation paid in Australian currency field is 'No'.

Go to Compensation Management Summary in Workspace and select:

• Periodic Payments
• the relevant Claim ID
• Change Details under Ongoing Details
• Add a new line for extra lines

Complete the following fields:

• Compensation Payer Incident Reference ID: key the compensation payer’s reference number if required
• Incident after CAP grant:
• Yes, treat as ordinary income
• No, treat as direct deductions
• Compensation paid in Australian currency field: 'No'
• Country of Payment: select the country from the dropdown box
• From date: the start date of the periodic payments
• To date
• Foreign Amount: the amount paid in foreign currency
• Select Retrieve Exchange Data. This will convert the foreign payment amount into Australian dollars
• Exchange Rate: the system will populate
• Gross Amount: the system will populate in $AUD
• Payment Frequency: select from the dropdown box
• Recipient Assessment Benefit/Pension Rate and Recipient Assessment CAP Qualified fields: see the Resources page for coding
• Complete Source and Receipt date
• Select Continue. The Assessment Results (AR) screen will display any positive or negative adjustments

Historical exchange rates can be located on the Foreign Exchange Summary (RDFXS) screen. See Foreign currency and exchange rates.

The customer will get a Compensation Foreign Exchange letter every 3 months. It shows the exchange rates used.

Determine if any arrears or calculated debt are correct. Consider adjusting the AR screen, taking into account any previously suppressed arrears for the same period.
See:

• Payment of arrears after reassessment and stopping a payment, or
• Explaining and actioning negative adjustments on the Assessment Results (AR) screen

If a debt is expected but is not created within the AR screen, a manual debt shell may need to be created.

Is the assessment result, including any calculated debt correct?

• Yes, see Table 4, Step 3
• No, see Table 4, Step 1

Has the customer and/or partner received a Compensation Affected Payment (CAP) in the period the arrears payment represents?

• Yes, go to Step 2
• No:
• do not record arrears of periodic payments on the Periodic Payment Details screen
• record the details on a Fast Note
• record the end date of the periodic payment on the Claim Details screen
• send a Q928 nil charge notice to the Compensation Payer
• procedure end here

Go to the Claim Summary and select the relevant Claim ID.

Check the following screens and update if necessary:

• Clearance Details
• Incident Details
• Claim Details
• Solicitor Details
• Compensation Payer

Make sure the compensation payer's details are correct and, includes their reference number.

For non-current customers, ensure the customer address is current and correct. See Updating address details.

Go to Compensation Management Summary in Workspace and select:

• Periodic Payments
• relevant Claim ID

Check the Arrears Details screen:

• if there are periodic payments recorded for the same period, see Changing and deleting periodic compensation debt details. Procedure ends here
• if there are no periodic payments recorded for the same period, go to Step 3

Is the compensation recipient partnered, and only the partner received a Compensation Affected Payment (CAP) during the period the arrears payment represents?

• Yes, go to Step 5
• No, go to Step 4

• Yes, go to Step 5
• No, contact the compensation payer to determine if funds have been released to the customer:
• If funds have been released, send a Q928 Nil charge letter to the compensation payer and raise the debt to the customer under Section 1184F. Go to Step 5
• If funds have not been released, change the preliminary notice advice issued field to manual, go to Step 5

Go to Compensation Management Summary in Workspace and select:

• Periodic Payments
• relevant Claim ID
• Add New Arrears Details

Note: CMS does not allow breaks between arrears periods. If there is a break between periodic compensation arrears periods, each period must be coded in a separate activity to create a separate debt activity.

The following fields will appear in edit mode and can be changed:

• Compensation Payer Incident Reference ID: key the compensation payer’s reference number if required
• Incident after CAP grant:
• Yes, treat as ordinary income
• No, treat as direct deductions
• Compensation paid in Australian currency: defaults to 'Yes'. If 'No' is selected, see Table 2, Step 13
• From Date: key the start date of the arrears
• To Date: end date the previous rate and add a line for new details.
• The final line of the To Date must be:
• the end date of the arrears if the periodic payments are not continuing
• the date of receipt or date paid to of the CAP, whichever is later, if the periodic payments are continuing and customer and/or partner are no longer in receipt of a CAP
• the date paid to of the CAP, if the periodic payments are continuing, and customer and/or partner are currently in receipt of a CAP
• Gross Amount: the gross rate of the periodic payments
• Payment Frequency: select from the dropdown box
• Recipient Assessment/Pension Rate and Recipient Assessment CAP Qualified, see Resources page for coding
• Issue Advice: select from the dropdown box, see Resources for coding
• S1184H debt: select 'Yes' if the compensation payer is in breach of an earlier notice. An automatic section 1184H debt advice will go to the compensation payer
• Complete Source and Receipt Date
• If periodic compensation is continuing, and customer and/or partner are in receipt of a CAP:
• record ongoing payments in Ongoing Details
• code From Date as date paid to plus one of the CAP
• Select Continue, the Assessment Results (AR) screen will display any negative adjustments

See Compensation and Supplementary payments for information about which payments are included in compensation calculations.

Is the calculated debt correct?

• Yes, and it is a:
• payer charge, see Table 4, Step 3
• customer debt, see Table 4, Step 4
• partner debt only, go to Step 7
• No, see Table 4, Step 1

Send a Q928 Nil charge letter to the compensation payer and raise debt to the partner under section 1223(1) of the Social Security Act.

See Raising periodic compensation charges for partnered customers.

Record the details on a Fast Note.

Procedure ends here.

A manual debt calculation may be required when:

• the arrears period is before 20 September 2001
• the Assessment results (AR) screen has a before the limiting date (BLD) line
• no debt on the AR screen where one is expected
• calculated debt is incorrect, for example, previously suppressed arrears have been incorrectly included

All debts that can be calculated via the system and explained using Debt Explanation (ADEX) must be calculated in that manner:

• A reassessment or refresh activity can be coded on the Benefit Action (BA) screen, which may trigger the overpayment to auto calculate
• In some cases, the Limiting Date may be moved to allow the system to calculate the debt:
• check the Limiting Date (LMTD) screen
• see Resources for information on moving limiting dates.
  Note: in cases where the limiting date can be moved, the CMS activity will need to be cancelled prior to LMTD coding
• If there is NIL entitlement to income support payments due to the rate of compensation:
• the PS Tool may be used calculate the overpayment
• see Rates and Thresholds index

If these steps are unsuccessful, complete a manual calculation, see Using the Multical debt calculator.

When calculating a new debt, consider previously investigated debts where the debt periods overlap.

Staff must review:

• all previously investigated debts on the Debt List (OPDL) screen, and
• debts listed in the Debt Explanation (ADEX) as a related activity

Once calculated:

• manually adjust the AR screen where practical, considering any previously suppressed arrears for the same period
• see Explaining and actioning negative adjustments on the Assessment Results (AR) screen

Where it is not practical to adjust the AR screen or the system has not created a debt:

• a new debt record will need to be created
• see Create a new debt record manually on the Debt Management and Information System (DMIS)

For a compensation payer charge, a manual recovery notice will need to be issued. Change CMS advice issue to Manual.

Garnishee can be considered to recover outstanding debts. See Compensation garnishees to recover debts.

An unfavourable decision is a decision that is adverse to the customer and/or partner. This includes:

• rejection of a claim
• cancellation of payment
• rate reduction
• raising a customer and/or partner debt

Will the assessment result in an adverse decision?

• Yes, and:
• adverse decision relates to a debt only, go to Step 6
• all other adverse decisions, go to Step 5
• No, go to Step 6

Prior to finalising the activity:

• make genuine attempts to contact to the customer and/or partner. See Advising verbally of an unfavourable decision
• there are language and interpreter services available for customers who may need an immediate telephone interpreter or indigenous language interpreter. See Interpreter Services
• consider any vulnerabilities or sensitivities that may impact the customer. See Identifying customer vulnerability and risk issues
• record details of each attempt on a Fast Note

Compensation Recovery Team (CRT) staff must avoid placing a customer in financial hardship. When arrears of periodic compensation have not yet been released staff must consider:

• when the compensation payer will release the arrears to the customer, and
• when the next income support payment is due to be paid, and
• placing activity on hold until after the next entitlement period of the Compensation Affected Payment (CAP)

If compensation is ongoing:

• customer must be advised not to report periodic compensation payments as earnings, and
• report any changes in the rate of compensation, including gradual return to work

• Select Finalise
• Select Continue, the CMS screen will display
• record the details on a Fast Note

If the Assessment Results (AR) screen is not displayed:

• select the started activity on the Activity List (AL) screen
• go to Next
• press [Enter] until AR presents
• press [Enter]

Consider if a preliminary notice is required to be issued.

Do not send a preliminary notice if the compensation recipient:

• has ongoing periodic payments, and
• claims or is getting a Compensation Affected Payment (CAP)

This is because the compensation payer has already accepted liability.

If the periodic compensation has ceased, finalise the compensation claim in CMS. See Finalisation of compensation claims (CLK).

Do not finalise a claim when the:

• periodic payments are continuing into the future, and
• CAP continues to be paid to the customer and/or their partner, or a Low Income Health Care Card (LIC) is current

This will allow the rate of periodic compensation to be changed.

Letters to third parties are issued according to the service they are registered for:

• CBOS (Centrelink Business Online Services)
• Fax
• Mail

See Compensation letters for further information about sending compensation recovery letters to third parties.

Customer contact may be required prior to debt raising. See Debt raising support for customers for contact requirements.

See General debt raising information for further information about actioning debt activities.