Adding or updating a defined benefit income stream 108-05060060

Type

Description

Special Rate Disability Pension (SRDP)

The Maximum SRDP payable amount is reduced first by:

• any Permanent Impairment compensation payable, then
• Commonwealth superannuation, and
• possible debt repayments

The maximum possible Commonwealth superannuation reduction is 60% of the available Commonwealth superannuation.

Example of how DVA may express the SRDP assessment:

SRDP payable amount per week

• Maximum SRDP rate $721.60
• less MRCA PI offset $237.82
• less DRCA PI offset $0.00
• less 60% Superannuation offset $611.32
• less VEA DP offset $0.00

SRDP payable = $0.00

In this example, the superannuation offset is $611.32. At 60%, this offset was generated from $1,018.86 per week superannuation. $611.32 x10 / 6 = $1,018.86.

However in this example, $611.32 was not required to reduce the SRDP payment to nil. After reducing for the Permanent Impairment offset ($721.60 - $237.82), only $483.78 was used to offset the SRDP to 0.00. Which at 60%, required only $806.30 per week of the superannuation. i.e. ($483.78 x 10/6 = $806.30).

Convert any weekly SRDP figures back to fortnightly.

• The defined benefit income is $2,037.72 (this should be compared to the schedule to ensure the DVA calculation is up to date)
• The exempt defined benefit income is a reduction of $1,612.60 per fortnight for the amount used in the SRDP assessment and is to be coded under Other Deduction Amount/Other Ded Amount field
• The Other Deduction type/Other Ded Amount Method field should be coded with ‘S’ unless there is also a Family Law Split allowed reduction to be added to the SRDP reduction and then it would be ‘B’

Note:

• The defined benefit may end up having nil assessable income if the Tax-free component (TFC) amount together with the Other Deductions equal or exceed the gross payment. It should still be coded and updated, so it continues to be updated with later CPI changes