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Calculating bereavement lump sum
Helen was caring for a relative, Jacob (aged 10) and received Double Orphan Pension (DOP) and Family Tax Benefit for Jacob. Jacob died on 05/01/2016. The funeral director advised the local Service Centre on 16/01/2016. Helen's last payment of DOP was on 12/01/2016.
The bereavement lump sum is calculated as follows:
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Work out the rate at which DOP was payable immediately before the first available bereavement adjustment payday. The result is called the continued rate
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Work out the number of Helen's days in the bereavement period
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Multiply the daily rate by the number of days obtained in Step 2. The result is the amount of the lump sum payable to the person under this section
Calculate bereavement lump sum for Helen
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The daily rate is the fortnightly rate divided by 14
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The bereavement lump sum period is from 26/01/2016 to the end of the bereavement period (14 weeks from date of death) 13/04/2016, which is 78 days
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The bereavement lump sum is the daily rate x 78. (Daily rate calculation is necessary due to additional rate payments)
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