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Compensation Recovery Teams (CLK) 117-01020000



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  • Compensation Recovery - Palm Beach

    General processing abbreviations and acronyms

    Table 1: This table contains standard abbreviations and acronyms used in Centrelink Compensation Recovery

    Abbreviation

    Description

    AAT

    Administrative Appeals Tribunal

    ADV

    Advance Payment

    AOC

    Arrears and other Costs

    CAP

    Compensation Affected Payment

    CARS

    Claims Assessment and Resolution Services

    CHG

    Charge

    COD

    Certificate of Determination

    CLS

    Common Law Settlement

    CMS

    Compensation Management System

    CTP

    Compulsory Third Party (Motor Vehicle Claim)

    CVS

    Corona Virus Supplement

    CWE

    Current Weekly Earnings

    DDN

    Direct Deductions

    DDB

    Dust Disease Board

    DEF

    Defendant

    DOB

    Date of Birth

    DOI

    Date of Injury / Incident

    DLP

    Date last paid periodic compensation payments

    DMO

    Debt Management Officer/ Debt Staff

    DSS

    Department of Social Services

    DTF

    Desktop Fax

    DVA

    Department of Veteran Affairs

    EFT

    Electronic Funds Transfer

    FOI

    Freedom of Information

    GLO

    Global Economic Loss Lump Sum Settlement

    FGRA

    Future Gratuitous Services

    FLOE

    Future Loss of Earnings

    FPP

    Future Preclusion Period

    JUD

    Judgement

    IB

    Impairment Benefit

    ICWA

    Insurance Commission of Western Australia

    IMP

    Impairment Payment

    IMR

    Income Maintenance Rate

    INC

    Income

    INT

    Interest

    IP

    Impairment Payment

    ISP

    Income Support Payment

    LIC

    Low Income Health Care Card (LIC)

    LOE

    Loss of Earnings

    LOEC

    Loss of Earnings Capacity

    LOAM

    Loss of Amenities

    LSPP

    Lump Sum Preclusion Period

    MED

    Medical payments

    MOA

    Memorandum of Agreement

    MOC

    Medicals only claim

    MOD C

    Compensation and Damages Form

    MVA

    Motor Vehicle Accident

    MAC

    Motor Accidents Claim

    NEL

    Non-Economic Loss lump sum settlement

    NWE

    Notional Weekly Earnings

    PGRA

    Post Gratuitous Services

    PI

    Permanent Impairment

    PIAWE

    Pre-Injury Average Weekly Earnings

    P/L

    Public Liability

    PLEC

    Past Loss of Earnings

    PLOE

    Partial Loss of Earnings

    RED

    Redemption

    REHAB

    Rehabilitation payments

    ROC

    Redemption and Other Costs

    RPCP

    Repaid Periodic Compensation Payments

    RTWSA

    Return to Work South Australia

    SET

    Settlement

    SF030

    Notice to Prepare Refund Account

    SME

    Subject Matter Expert

    SO

    Service Officer

    SOL

    Solicitor

    SS Act

    Social Security Act 1991

    SS Guide

    Guide to Social Security Law

    SS445

    Compensation Advice of Periodic Payments Form

    SS446

    Compensation Advice of Lump Sum Payments Form

    SS484

    Compensation Recovery Statement of Financial Circumstances Form

    SS485

    Compensation Personal Sickness & Accident Claim Form

    TAC

    Transport Accident Commission

    TOS

    Terms of Settlement

    VWA

    Victorian WorkCover Authority

    WCQ

    WorkCover Queensland

    Compensation Terminology – A to K Index

    Letter

    Terms

    A-K

    See also: L-Z

    Centrelink Compensation Recovery

    Claimant

    Compensation affected payment

    Compensation assessed as direct deduction

    Compensation assessed as income

    Compensation clearance

    Compensation divisor

    Compensation management system

    Compensation part

    Compensation payer

    Compensation recovery charge

    Deed of release

    Defendant

    Direct deduction

    Economic loss

    Ex-gratia payment

    Global settlement

    Gradual return to work

    Gratuitous care

    Gross lump sum settlement amount

    Implied authority

    Incident/Injury

    Income text concession

    Injured person

    Judgement

    Compensation Terminology – A to K Terms

    Term

    Description

    Centrelink Compensation Recovery

    A program delivered by Services Australia on behalf of the government, to recover Centrelink income support payments paid to an injured person in relation to an injury/illness where they have been awarded compensation.

    It is a principle of the social security system that people who are unable to work because of a compensable injury should not receive income support from both the social security system and compensation systems for the same period.

    Claimant

    The person seeking compensation (plaintiff).

    Compensation affected payment

    A social security payment that can be affected by the receipt of, a lump sum compensation payment and/or periodic compensation payments.

    Compensation affects most Centrelink income support payments.

    Compensation assessed as direct deduction

    Applies where the compensation recipient was not receiving income support at the date of the compensable event, compensation is assessed as direct deduction.

    Compensation assessed as income

    An income test concession applies where the compensation recipient was receiving income support at the time of the compensable event, compensation is treated as income.

    Compensation clearance

    The CRT will investigate the customer’s compensation claim and determine if any action is to be taken, and advise Service Officers on the payability of a customer’s CAP.

    Compensation divisor

    The compensation part is divided by the income cut-out amount for a single rate of pension applying at the date of the settlement.

    Compensation management system

    The database system used by the agency to manage Centrelink compensation recovery cases, including to register a case, enter details of relevant parties and action periodic and lump sum payments.

    Compensation payer

    The person who is liable to make a payment of compensation

    Compensation part

    In ALL cases where:

    • the lump sum payment is received as SETTLEMENT of a claim, including as a consent judgement, as an interim payment, or a redemption of periodic payments, AND
    • all or part of the payment is for:
      • lost earnings, OR
      • lost capacity to earn

    then 50% or half the lump sum payment is deemed the compensation part

    In ALL cases where a compensation claim finalised after a contested hearing by a court, tribunal or arbitrator, can be known as a judgment, the specific amounts awarded for economic loss, including the arrears or advance of the periodic compensation payments, are taken to be the compensation part of the lump sum payment and the 50% rule does not apply.

    Compensation recovery charge

    A compensation recovery charge is the legally recoverable amount (debt) raised to the compensation payer or to the customer, when a customer receives a lump sum payment or periodic arrears of compensation payments, for the same period income support payments have been paid to a customer and/or partner.

    Deed of release

    Deed of release provides the terms of settlement, the amount and any other payment components, or deductions from the settlement. The deed of release must contain at least one signature either physical or electronic from the Defendant Solicitor or compensation payer and Plaintiff Solicitor or customer.

    Defendant

    The compensation payer or liable party.

    Direct deduction

    Periodic compensation is assessed as a dollar for dollar rate reduction against the CAP rate otherwise payable.

    Economic loss

    The portion (or component) of a compensation settlement for the claimant's loss of earnings or lost capacity to earn.

    Ex-gratia payment

    A payment that is made without the liability being established or admitted and treated as other compensatory in nature lump sums.

    Global settlement

    Means lump sum settlement.

    Gradual return to work

    When the customer is on a gradual return to work and is in receipt of both earned income (wages) and partial compensation payments.

    Gratuitous care

    If someone provides care for a person who has a compensation claim, this can be added to that claim (settlement).

    Gross lump sum settlement amount

    To calculate the gross lump sum settlement amount add ALL these payments together:

    • the lump sum settlement amount
    • total amount of previously paid weekly compensation payments including GST and Tax
    • all medical, hospital and rehabilitation costs
    • legal costs (known at the time of settlement)
    • advance payments
    • impairment payments
    • pain and suffering payment

    The only allowable deduction before applying the 50% rule is the gross weekly compensation that has been paid.

    Income text concession

    Applies where the compensation recipient was receiving income support at the time of the compensable event, compensation is treated as income.

    Injured person

    The individual who has suffered an injury or illness.

    Incident/Injury

    Injury, illness or disease relating to a compensation claim.

    Implied authority

    Solicitor acting on behalf of the injured worker.

    Judgement

    A ruling or judgement by a judge or tribunal after a contested hearing in finalisation of a compensation claim.

    Compensation Terminology – L to Z Index

    Letter

    Terms

    L-Z

    See also: A-K

    Medical costs

    Memorandum of Agreement

    Non-economic loss

    Periodic compensation payment

    Periodic compensation payment period

    Permanent impairment

    Plaintiff

    Preclusion period

    Redemption Lump Sum

    Redemptions and Other Costs Lump Sum

    Repaid periodic compensation payments

    Saved compensation affect payments

    Settlement

    Settlement date

    Settlement document

    Social Security payment

    Solicitor Defendant

    Solicitor Plaintiff

    Special circumstances provision

    Supplementary payments

    Compensation Terminology – L to Z Terms

    Term

    Description

    Medical costs

    Medical costs include rehabilitation, hospital and travel.

    Memorandum of Agreement

    The purpose of the Memorandum of Agreement is to have a formal understanding of the agreement between parties and is legally binding.

    Non-economic loss

    Non-economic loss compensation refers to personal injury compensation that is NOT made in respect of lost earnings or lost capacity to earn.

    Non-economic loss compensation can include pain and suffering and impairment payments, which can be paid under workers' compensation, motor vehicle accident, public liability and criminal compensation schemes.

    Periodic compensation payment

    Periodic Payments are made on a regular basis, for example weekly or fortnightly,

    Periodic payments are deemed to be received from the date they become payable. These payments affect social security income support payments on a dollar for dollar rate reduction basis (most compensation recipients), or as ordinary income depending on the circumstances (some compensation recipients and all partners of compensation recipients). For partners of compensation recipients, the excess periodic compensation is treated as other ordinary income.

    Periodic compensation payment period

    A series of payments made on a regular basis:

    • The period to which a periodic compensation payment, or a series or periodic compensation payments, relates; or
    • In the case of a payment of arrears of periodic compensation payments, the period to which those payments would have related if they had not been made by way of arrears payment.

    Permanent impairment

    A permanent impairment payment is a non-economic loss compensation payment for personal injury that is NOT made in respect of lost earnings or lost capacity to earn.

    Plaintiff

    The plaintiff is the injured person claiming compensation, also known as the compensation recipient.

    Preclusion period

    A compensation preclusion period is a calculated period of self-support during which a lump sum compensation recipient cannot be paid a compensation affected payment and must repay previously received social security payments if part or all of the lump sum preclusion period falls in the past.

    Redemptions and Other Costs Lump Sum

    Arrears or advances of periodic payments may be included in a lump sum settlement with other compensation components such as, pain and suffering, medical costs, interest etc. Do not separate the periodic payment components to calculate their individual effects under the Social Security Act. Assess the entire settlement as a lump sum. The only exception is arrears of periodic payments with interest only. Assess this as periodic payments in the period they are paid.

    Redemption Lump Sum

    A redemption is where the injured person and compensation payer agree to a single lump sum payment instead of paying ongoing weekly compensation payments for a specified fixed or non-fixed period.

    Repaid periodic compensation payments

    Repaid periodic compensation payment (RPCP) is equal to the periodic compensation payments received.

    Payback between two insurers, has no bearing on the amount the compensation recipient received for lost earning (wages).

    Saved compensation affect payments

    A saved compensation affected payment (SCAP) is a social security pension, benefit or allowance, which was granted before that payment type became a compensation affected payment.

    Settlement

    Where an agreement has been reached either by a consent judgement or other in finalisation of a compensation claim.

    Settlement date

    For Consent Judgements the date the Deed of Release is signed by the Defendant Solicitor or compensation payer and the Plaintiff Solicitor or customer (the earlier of the two dates).

    Settlement document

    For Judgements the date the arbitrator or the court has sanctioned or ratified the decision

    Settlement Documents include deed of release and must contain at least one signature either physical or electronic from the Defendant Solicitor or compensation payer and Plaintiff Solicitor or customer. The signature legally binds an individual to the information in the document.

    Social Security payment

    One of the following types of payments paid under the Social Security Act 1991:

    • A social security pension
    • A social security benefit
    • An allowance

    Solicitor Defendant

    Appointed by the compensation payer or liable party to act on their behalf. Defendant Solicitor provides documentation and other correspondence relating to the compensation case.

    Solicitor Plaintiff

    Appointed by the injured person or claimant to act on their behalf. Plaintiff’s Solicitor provides documentation and other correspondence relating to the compensation case.

    Special circumstances provision

    In situations where the compensation provisions could lead, or have led to extreme hardship or created an inequitable, unjust or unreasonable situation.

    Due to the unforeseen, exceptional or extreme situations, special circumstances provisions can be applied to treat the whole or part of a compensation payment as not having been made or not liable to be made.

    Generally, the provisions are applied to a lump sum compensation payment with the result that all, or part, of a preclusion period is reduced. This may also reduce, or negate altogether, any associated compensation debt.

    Supplementary payments

    Supplementary payments or add-on payments are included in the calculation of a periodic or lump sum charge where the underlying payment is a CAP.