Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p5
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 5/35)
Character Range: 48812–51568

the person's pension (as the case may be) is reduced by half the amount per fortnight of the periodic compensation payments received by the person or the person's partner.

    Note: If the person's partner is qualified for a compensation affected payment under the Social Security Act, that payment will be reduced under that Act.

"(5) If the amount per fortnight ('first amount') of the person's pension or of the compensation affected component of the person's pension is to be reduced under subsection (2), (3) or (4) by an amount that is greater than the first amount, the first amount is taken to be reduced to nil.

    Note: If a person's pension or the compensation affected component of a person's pension is reduced under this section, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 40C.

RATE REDUCTION EXAMPLES

Example 1:

Alice is not a member of a couple. She has no dependent children. She has had to stop work because of sickness. She claimed and was granted invalidity service pension of $282 per fortnight. Her employer has started paying her fortnightly compensation of $160. Alice was obliged to notify the Department of Veterans' Affairs (under section 54) as soon as she became aware that she was going to receive the periodic compensation payments. Her rate of invalidity service pension will then be reduced while she is receiving periodic payments from her employer. Since her situation is covered by subsection (2), her reduced invalidity service pension rate will be $122 per fortnight ($282 (Alice's fortnightly pension rate)—$160 (Alice's fortnightly periodic payment) = $122). This will be her rate of pension as long as she continues to receive the periodic payments of compensation from her employer.

Example 2:

June is a member of a couple. They have no dependent children. She has had to stop work because of sickness. She claimed and was granted partner service pension of $260 per fortnight. Her partner, William, is receiving invalidity service pension of $260 per fortnight. June's employer has started paying her fortnightly compensation of $160. June was obliged to notify the Department of Veterans' Affairs (under section 54) as soon as she became aware that she was going to receive the periodic compensation payments. While she is receiving periodic payments of compensation from her employer, both her partner service pension and William's invalidity service pension will be reduced. Since their situation is covered by subsection (4), June's rate will be reduced by $80 ($160/2) and William's rate will also be reduced by $80. As long as June continues to receive the periodic compensation payments from her employer, her rate of