Adding or updating a military invalidity pension income stream 108-24120314
Expand allSpecial Rate Disability Pension (SRDP) reduction calculation examples
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 x 10 / 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 military invalidity pension income is $2,037.72 (this should be compared to the schedule to ensure the DVA calculation is up to date)
- The exempt military invalidity pension 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 field.
- The Other Deduction Type 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 military invalidity pension may end up having nil assessable income if the Special Reduction 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