Lump sum compensation payments (CLK) 117-02000000

Lump sum compensation payments are:

• single or multiple payments for the same compensable claim
• aggregated to calculate the effect on a customer's social security payments

Assess a separate preclusion period for each compensable claim if:

• payments contain an economic loss component
• the amount has been paid wholly or partly for lost earnings or lost capacity to earn
• a single lump sum payment covers multiple compensable claims

The amount paid for each compensable claim is used for calculations. Apportion the lump sum across the claims where this information is not available.

Do not aggregate a single lump sum payment for multiple compensable events. Aggregation includes compensation lump sums for both economic (for example, lost wages) and non-economic loss made for the same compensable claim.

A lump sum paid solely as arrears of periodic payments is not treated as a lump sum.

Preclusion periods apply to prevent customers receiving income support from both the social security and compensation systems for the same period.

The Government expects customers to use part of their compensation lump sum payment to provide their own income support during the preclusion period.