Lump Sum Bereavement Payment (LBP) 099-06000000

LBP is paid to the surviving member of a couple if:

• each member of the couple was either a pensioner for LBP purposes or a long-term Social Security recipient, or
• they receive ABSTUDY Living Allowance and the deceased met the ABSTUDY LBP qualifications

Was the deceased person a member of a couple immediately before they died?

• Yes, go to Step 2
• No, see Table 2 > Step 1

• Yes, go to Step 3
• No, go to Step 5

If the surviving partner is a DVA customer, DVA pays the LBP if the customer is entitled. See Contact after the death of a partner. Procedure ends here.

If the surviving partner is in receipt of a Centrelink payment, were they a pensioner for LBP purposes or a long-term Social Security recipient when their partner died?

• Yes, the surviving partner may be entitled to an LBP depending on what payment the deceased received from the DVA
• Create an open work item using Fast Note with the following information:
  - Select Auto text, use Generic > Enquiry > DVA Clearance/Advice Request
  - Select Confirm
  - Document action required
  - Procedure ends here
• Go to Step 4
• No, see Table 2, Step 1

• Services Australia will assess entitlement to LBP if the deceased partner was receiving:
• DVA Service Pension
• Veteran Payment
• Income Support Supplement (ISS)
• Social Security Age Pension (paid by DVA)
• Go to Step 6
• If either partner received Defence Force Income Support Allowance (DFISA), DVA may pay a DFISA LBP. See Defence Force Income Support Allowance (DFISA) for more information

When the person died:

• Was each member of the couple a pensioner for LBP purposes or a long-term Social Security recipient?
• Was the surviving partner in receipt of ABSTUDY Living Allowance and the deceased met the ABSTUDY Lump Sum Bereavement Payment qualification?

Was the answer ‘Yes’ to any of the above questions?

• Yes, go to Step 6
• No, see Table 2 > Step 1

Generally, the LBP is calculated automatically for pension customers when their partner is recorded as deceased.

If the system cannot determine eligibility and/or calculate the LBP, a manual follow-up activity will be created on the surviving partner’s record. See Calculation of an LBP. Action the MFU immediately.

If the surviving partner receives JobSeeker Payment or Youth Allowance, see Table 4, Step 1.

The LBP is only payable if Services Australia is notified of the death in time to adjust the customer's payments within the bereavement period. This is because the LBP represents the difference between the couple's member of a couple rate as if the partner had not died and the customer's single rate during the bereavement period.

If the surviving partner dies within 14 weeks of their partner and the deaths are notified at the same time, the LBP that would have been payable to the surviving partner, may be paid to an appropriate person (for example, the executor of the estate of the surviving partner). The LBP is calculated differently in these cases. See Both members of a couple die.

Note: no lump sum is payable if the survivor's new single rate is more than the previous combined member of a couple rate. In the case of an illness separated couple determine the combined member of a couple rate by referring to How to work out the CMCR for an illness separated couple.

For a surviving ABSTUDY partner who is qualified for a LBP, an MFU will be created on their record to notify that an LBP is to be calculated and paid.

An ABSTUDY customer who is not qualified for an LBP does not need to be advised unless they have enquired about their eligibility. An OLA letter (Q505) is available for ABSTUDY to advise the customer they will not receive an LBP.

If the survivor is being paid by group schedule, then the survivor's entitlement to lump sum bereavement payment will be included in the group schedule.

Procedure ends here.

• Yes,
• for CP customer, go to Step 2
• for CA customer, go to Step 4
• No, go to Step 7

Was the care receiver:

• a child
• an adult who was not a member of a couple
• an adult who was a member of a couple, whose surviving partner was not in receipt of one of the following payments when they died
• a social security benefit
• a social security pension
• DVA Service Pension
• Veteran Payment
• Income Support Supplement (ISS)

Do any of the above apply?

• Yes, go to Step 3
• No, an LBP is not payable unless the care receiver's surviving partner is entitled. Other bereavement assistance may apply. See Contact after the death of a partner. Procedure ends here

Generally, the system calculates LBP when a customer is recorded as deceased.

A Manual Follow-up (MFU) is created when this cannot be done, with the keywords DEA, *REVIEW and @CAR. Eligibility for bereavement payment needs to be established manually and the activity will need to be completed from the Activity List (AL) screen.

See Death of an adult or child care receiver and the effect on CP.

If the CP customer dies within 14 weeks of the care receiver and the agency is advised of the deaths at the same time, the LBP payable to the CP customer may be paid to an appropriate person (e.g. their surviving partner or executor of the estate).

The CP customer's surviving partner may also be entitled to an LBP upon the death of the CP customer.

If the deceased care receiver was partnered to the CP customer, the LBP is calculated under the member of a couple rules.

Note: policy has been clarified relating to:

• the extension of CP following the death of an adult care receiver
• calculation of the LBP period for third party carers

Procedure ends here.

• If the deceased was an adult care receiver, go to Step 5
• If the deceased was a child care receiver, go to Step 6

If the carer was getting CA and an income support payment other than CP that does not qualify them for a bereavement payment, the carer may qualify for:

• a CA Bereavement Payment of up to 7 instalments of CA paid as a lump sum on notification of the death of the care receiver, and
• continuation of their CA until the earlier of:
• the day before the first available bereavement adjustment payday (Entitlement Period End Date), or
• the end of the bereavement period

There is no entitlement to the CA Bereavement Payment if a carer notifies outside the bereavement period.

For more information including shared care, see Death of an adult care receiver and the effect on CA.

A bereavement payment may be payable. The period of the payment depends on whether or not the child met the definition of a Family Tax Benefit (FTB) child of a person.

For more information, see Death of a child care receiver and the effect on CA.

Procedure ends here.

An LBP is not payable upon the death of the person.

However, other bereavement assistance may apply. See Contact after the death of a partner.

• Yes, go to Step 2
• No, go to Step 6

• Yes, go to Step 3
• No, go to Step 4

If the surviving partner is a DVA customer, DVA pays the LBP if the customer is entitled. See Contact after the death of a partner.

Procedure ends here.

If the surviving partner is in receipt of FHA payment, were they a long-term Social Security recipient when their partner died?

• Yes, the surviving partner may be entitled to an LBP depending on what payment the deceased received from DVA. Refer case via email to the DVA Clearance Team (SCS) for assessment of LBP entitlement
• No, go to Step 6

When the person died:

• Was each member of the couple receiving FHA, a pensioner for LBP purposes or a long-term Social Security recipient?
• Was the surviving partner in receipt of ABSTUDY Living Allowance and the deceased met the ABSTUDY LBP qualification?

Do any of the above apply?

• Yes, go to Step 5
• No, go to Step 6

Processing a death action for the partner of an FHA customer triggers a Social Application which assesses entitlement to LBP. The Social Application must be manually approved to issue the LBP.

The LBP is only payable if Services Australia is notified of the death in time to adjust the customer’s payments within the bereavement period. This is because the LBP is the difference between:

• the couple’s member of a couple rate as if the partner had not died, and
• the customer’s single rate during the bereavement period

See Death of an FHA customer or partner.

If the surviving partner dies within 14 weeks of their partner and the deaths are notified at the same time, the LBP that would have been payable to the surviving partner may be paid to an appropriate person (e.g. the executor of the estate of the surviving partner). The LBP is calculated differently in these cases. See Death of both members of a couple.

Other bereavement assistance may apply. See Death of an income support customer or their partner.

Note: no lump sum is payable if the survivor's new single rate is more than the previous combined member of a couple rate. For an illness separated couple, determine the combined member of a couple rate by referring to How to work out the CMCR for an illness separated couple.

Procedure ends here.

An FHA LBP is not payable upon the death of the person.

However, other bereavement assistance may apply. See Contact after the death of a partner.

PBV is paid to the surviving member of a couple if the customer:

• is receiving JSP or YA when they advise their partner’s death. For a claimant, the customer needs to be eligible for JSP or YA when they advise of partners death, and when the claim is granted, JSP or YA is payable
• and their deceased partner were Australian residents when the partner died
• or their correspondence nominee has notified of the partner’s death
• has not re-partnered when they notified of the death
• notified of the death within the 14 week bereavement period or within the duration of the pregnancy if the pregnancy is more than 14 weeks from the partner’s death

Customers who are also eligible for an LBP must relinquish the LBP in writing. This includes customers already paid LBP who want to receive PBV instead.

Dependent YA customers whose partner has died are also eligible for PBV, even though their records may not be linked.

LBP is paid to the surviving member of a couple if both members of the couple were either a pensioner for LBP purposes or a long-term Social Security recipient.

Some JSP and YA customers may be eligible for both PBV and LBP, but they can only receive one of the bereavement payments. If a customer is eligible for both bereavement payments, an MFU will generate on their record after their partner’s death action is done, advising staff of next steps required.

If the JSP or YA customer is eligible for both PBV and LBP, they must lodge a Partner Bereavement Payment Application (SA490) relinquishing their LBP entitlement in writing before they can be paid PBV.

Is the customer eligible for both LBP and PBV?

• Yes, go to Step 3
• No, go to Step 7

• If a third party has notified of the partner’s death, go to Step 4
• If the customer or nominee has notified the partner’s death, calculate LBP and PBV amounts using:
• the Bereavement Payment Calculator in Process Direct, or
• manually using Calculation of an LBP and Calculation of a PBV

If LBP is:

• lower than PBV, go to Step 5
• higher than PBV, go to Step 7

An LBP can be issued to eligible JSP and YA customers. PBV is not payable until the customer or their correspondence nominee has lodged a completed SA490.

After processing the death action, the Service Officer should calculate the LBP and estimate the PBV amounts using:

• the Bereavement Payment Calculator in Process Direct, or
• manually using Calculation of an LBP and Calculation of a BPV

If LBP is:

• lower than PBV, go to Step 6
• higher than PBV, go to Step 7

• If the customer or their correspondence nominee has notified the death by phone or in person, after processing the death action discuss the 2 bereavement payments if they are present:
• Advise how much each bereavement payment is estimated to be
• Explain that a PBV (SA490) form will need to be lodged within bereavement period
• Advise that evidence of pregnancy will need to be provided if pregnant
• Inform customer that LBP will be paid now and PBV top-up will be paid when the SA490 is lodged
• If the customer or their correspondence nominee has notified the death using the Advice of death form (SA116) (or another form) or is no longer present, do not contact the customer. Go to Step 6.

• Select MFU and go to the Newstart Miscellaneous (NMIS) screen. The Event Date and Date of Partner Death fields will prefill from death action on partner’s record
• Process the Bereavement Payment by coding the following fields in Customer First:
• Event date: the date of notification of death
• Date of Notification: the date the death was notified, by any source
• Notified by: CUS (Customer), NOM (Correspondence Nominee) or OTH (Other)
• Go to the OOP screen to issue LBP. For help, see Calculation of an LBP
• Issue SA490 with Q150 letter. Select the option to invite to apply for PBV
• DOC record with details

Procedure ends here.

As the LBP is higher than PBV, the customer does not need to be advised of the lower paying PBV.

• Select MFU and go to the Newstart Miscellaneous (NMIS) screen. The Event Date and Date of Partner Death fields prefill from death action on partner’s record
• Code fields:
• Event date: the date of notification of death
• Date of Notification: the date the death was notified, by any source
• Notified by: CUS (Customer), NOM (Correspondence Nominee), or OTH (Other)
• Bereavement payment type: select BLS (Lump Sum Bereavement Payment)
• Source, DOR and Action
• Go to the OOP screen to issue LBP. For help, see Calculation of an LBP
• Send Q150 letter and DOC record with details. The customer should not be invited to apply for PBV
• DOC record with details

Procedure ends here.