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Changing compensation debt details for customers in special circumstances 117-04020020

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This document outlines how to change the debt after being paid lump sum compensation.

Special circumstances

When special circumstances exist, section 1184K allows the Compensation Recovery Team (CRT) to treat all or part of a compensation payment as:

  • not having been made or
  • not liable to be paid

Recalculate the lump sum preclusion period and any debt.

Disregarded compensation

The CRT decides how much compensation is to be disregarded.

For consent settlements the new compensation part will be half of the reduced lump sum amount.

For adjudicated awards consider how much economic loss will need to be taken into account.

Code the amended economic loss value on the Compensation Management System (CMS) once determined. The system then recalculates the debt on the customer's social security pension or social security benefit.

The Resources page contains a link to the Notice to prepare a Refund Account (SF030).

Special circumstance provisions for customers receiving compensation payments

Changing compensation preclusion period details for customers in special circumstances

Calculating a charge for lump sum compensation payments

Calculating the compensation part of a lump sum payment

Calculating a compensation debt for out of court settlements

Calculating a compensation debt for judgements

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