Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p6
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 6/35)
Character Range: 51334–54222

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 partner service pension will be $180 ($260 (June's partner service pension rate)—$80 = $180) and William's rate of invalidity service pension will also be $180 ($260 (William's invalidity service pension rate)—$80 = $180).

Example 3:

Jonathan is not a member of a couple. He has had to stop work because of sickness. He claimed and was granted invalidity service pension. He has 2 dependent children under 13 years and pays full private rent. Jonathan receives $556.50 per fortnight. His employer has started paying him fortnightly compensation of $400. Jonathan was obliged to notify the Department of Veterans' Affairs (under section 54) as soon as he became aware that he was going to receive the periodic compensation payments. His rate of invalidity service pension will then be reduced while he is receiving periodic payments from his employer. Since his situation is covered by subsection (2) his reduced invalidity service pension rate will be $233.20 per fortnight. Jonathan's basic rate of invalidity service pension plus pharmaceutical allowance is $323.30. These are the only components affected. Dependent child add-on, guardian allowance and rent assistance (the dependent child component of his pension) are not affected in this situation. The $400 per fortnight compensation is more than $323.30; therefore, there is no basic invalidity service pension or pharmaceutical allowance payable. The amount remaining is the dependent child component, $233.20 (S556.50—$323.30). This will be his rate of pension as long as he continues to receive the periodic payments of compensation from his employer.

Claim for compensation affected pension granted to person qualified for compensation affected payment under Social Security Act

"59U.(1) If:

    (a) a person's claim for a compensation affected pension is granted; and

    (b) immediately before the claim is granted, a compensation affected payment for which the person was qualified under the Social Security Act was not payable to the person under section 1165 of that Act because of a lump sum compensation payment made to the person or to the person's partner;

the person's pension or (if the person's pension has a dependent child component) the compensation affected component of the person's pension is not payable to the person for the remainder of the period that was the person's lump sum preclusion period for the purposes of the Social Security Act.

"(2) If:

    (a) a person's claim for a compensation affected pension is granted; and

    (b) immediately before the claim is granted, the person was receiving a compensation affected payment under the Social Security