Actioning compensation interest checks (CLK) 117-01030000

If the correspondence is from:

• customer's solicitor, go to Step 2
• compensation payer, go to Table 2
• compensation payer’s solicitor, go to Step 3

The customer's solicitor has implied consent to receive information on the effect the compensation claim has on Centrelink payments.

Go to Table 2

If the agency has an interest in the compensation claim, a copy of any notices sent to the compensation payer can be sent to their legal representatives. Sending a copy of the notices to their legal representative can be considered, providing the original letter is also sent to the compensation payer.

Notices sent to compensation payers include:

• Preliminary Notice
• Recovery Notice
• Notice of release

If the solicitor contacts by phone to discuss information about a customer (current or former), only disclose information concerning the compensation claim (for example, compensation charge). This is not general permission to disclose any protected information.

Staff must be satisfied that the solicitor is acting for the compensation payer.

Is the delegate satisfied the solicitor is acting for the compensation payer?

• Yes, go to Table 2
• No, go to Step 4

Do not disclose any information or give a copy of the notices to the solicitor. Once the interest check has been completed, fax the notices to the compensation payer only.

See Faxing letters using Outlook and Customer First.

Go to Table 2

A request can be from the:

• customer's solicitor
• a compensation payer
• a compensation payer’s solicitor

Use the Name Search (IN) screen or the Online Search (OLS) facility to search for a customer's Customer Reference Number (CRN).

Has the search found a CRN?

• Yes, go to Table 3
• No, go to Step 2

Has the search found a child record?

• Yes, complete child to person record conversion
• No, customer must be added to the system – see Adding a customer to the system.
• After creating a CRN, go to Table 3

If a document has been attached to an incorrect customer’s record, see Digital image attached to incorrect Centrelink customer record.

A compensation work item is created when a third party submits:

• Compensation Advice of Periodic Payments (SS445) form
• Compensation Advice of Lump Sum Payments (SS446) form
• other supporting documents (for example, payment schedule, settlement documents)

Check the Document List (DL) screen if the request relates to a previous request for information.

• If the
• request is not about the release of a periodic or lump sum payment (for example, solicitor seeking interest before settlement of a claim)
• claim has not settled or it is clear that there will be no interest
• go to Step 9
• Otherwise, go to Step 2

Check the documents and decide if more details are needed to assess the periodic or lump sum payment. For example, completed SS446 and supporting documents.

If an Advice of Lump Sum Payments (SS446) or Advice of Periodic Payments (SS445) form has not been provided:

• check if the questions in the forms can be answered based on the available evidence (for example, settlement documents, letters or statements)
• decide if more information is needed

Have all details have been provided?

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

Make genuine attempts to contact the third party to request the information. Attempts to contact third parties must be made over 2 or more business days.

Information that can be obtained over the phone may include, but is not limited to:

• Date last paid weekly compensation
• Confirmation of economic loss
• Claim number

Note: the decision maker must decide whether to request the information in writing. For example, if there are concerns about the accuracy of information supplied verbally.

• Can be given over the phone:
• Record the discussion in a DOC
• Go to Step 4
• Cannot be given over the phone:
• Request a completed SS446 or SS445 and missing documents to be faxed
• Record all action taken in a DOC. For example, successful contact made with compensation payer to re-fax a completed SS446 with settlement documents.
• Cancel the activity or scanned document
• Procedure ends here

• Record all unsuccessful contact attempts in a DOC including:
• Time
• Dates
• voicemail recipient name (if applicable)
• details of information required
• Cancel the activity or scanned document
• Procedure ends here

Agency interest exists if the compensation recipient and/or partner’s past, present or future social security payments or concessions will be impacted by the compensation payment. See Resources for a list of social security entitlements that may indicate agency interest.

Agency interest does not exist when:

• The compensation payment does not result in a debt
• The compensation payment does not result in a future preclusion period
• Arrears of periodic compensation represents a period in the past, and
• the compensation recipient and/or partner did not get Compensation affected payments (CAP) or concession during the entire period the arrears represents, and
• the compensation recipient and/or partner are not currently getting a CAP
• Lump sum preclusion represents a period in the past, and
• the compensation recipient did not get a CAP or concession during the entire period the preclusion represents, and
• the compensation recipient and/or partner are not currently getting a CAP

Check the following screens and decide if the compensation recipient and/or partner is receiving an income support payment or concession:

• Payment Summary (PS)
• Benefit Status (XBS)
• Allowance/Benefit History (ABH)
• Pensions Status History (PNSH)
• PPP Change History (PGCH)
• Concession Entitlement Summary (MCCS)
• LIC Assessment Summary (LIAS)
• Payment List screen in Customer First for Farm Household Allowance (FHA) payments

Is the compensation recipient and/or partner receiving any payment or concession with a current (CUR) status?

• Yes, go to Step 7
• No, go to Step 5

If the request relates to arrears of periodic payments, go to Step 6.

Check the documents provided and decide if there will be a future preclusion period. Complete a provisional calculation. See Compensation lump sum preclusion periods and Calculating the compensation part of a lump sum payment.

Will there be a future preclusion period?

• Yes, go to Step 7
• No, go to Step 6

Check the start and end dates of the periodic payment or lump sum preclusion period and decide if a compensation affected payment (CAP) was received in the period.

If the compensation recipient and/or partner has:

• received a CAP in the period, or has an undetermined claim for a Low Income Health Card (LIC), go to Step 7
• not received a CAP in the period or has only received a LIC and the request is:
• for a claim which has settled, and from a compensation payer or customers solicitor, go to Step 8
• for a claim which has not settled, go to Step 9
• for a deceased compensation recipient, go to Step 10

If no compensation record exists in CMS for the incident date, create a record. See Coding compensation and damages (Mod C) to request a clearance.

If a compensation record exists in CMS and the request is about:

• periodic payments, see Coding periodic compensation payments and raising debts
• lump sums, see Assessing lump sum compensation payments and calculating debts
• judgement order, see Calculating a compensation debt for judgement

If the payments are found not to meet the definition of compensation, record the payments on the relevant screens on the customer's record. See:

• Recording other income on the Other Income (OIN) screen
• Assessing superannuation

Procedure ends here.

Check the Debt List (OPDL) screen for outstanding debts and consider garnishee. See Garnishee of compensation payments to recover debts.

Staff must:

• Send Q999 letter to the customer’s solicitor, see Resources for text
• Send Q928 nil recovery notice to the compensation payer, and a copy to their solicitor if required
• Do not code details onto CMS
• Cancel the activity or scanned document
• Record all action taken in the No Interest Fast Note

If a fax number has been provided for the compensation payer and/or their solicitor, fax the notices in one transaction. See Faxing letters using Outlook and Customer First

Procedure ends here.

When a determination has been made that there is no agency interest and/or notification has been received from the recipient’s solicitor, compensation payer (or their solicitor) about a claim that has not settled yet, check if the compensation recipient has received a compensation affected payment (CAP) since their date of injury.

If the compensation recipient's solicitor is only asking for a preclusion period estimate, go to Step 11.

If the compensation recipient:

• has received a CAP since their date of injury, consider sending a Preliminary Notice. See Actioning a compensation clearance
• has not received a CAP since their date of injury:
• Send Q922 Claim for compensation to the compensation recipient’s solicitor
• Either send Q928 to the compensation payer and a copy to their solicitor (if required) for periodic compensation arrears cases, or
• Send Q999 to the compensation payer and/or their solicitor for all other cases, see Resources for text
• Do not code details on CMS
• Cancel the activity or scanned document
• Record all action taken in the No Interest Fast Note

Procedure ends here

Do not send any letter to, or care of, the executor of the deceased estate or personal representative.

If the compensation payer is seeking clearance for a deceased compensation recipient:

• Do not create a record in the name of the Executor of the Estate
• Do not code details on CMS
• Do not send an automatic release notice
• Send Q928 nil recovery notice to compensation payer
• Cancel the activity or scanned document
• Record all action taken in the No Interest Fast Note
• Note: if a lump sum has settled for a deceased compensation recipient, and the preliminary notice was sent before the death of the compensation recipient, see Assessing lump sum compensation payments and calculating debts.

Procedure ends here.

Contact the solicitor and refer them to the Compensation Online Estimator (CLK).