3.1.5.25 Bereavement payment provisions for single pensioners

Summary

If the deceased person was a single pensioner receiving Age, DSP, CP or PPS, the final payment covers the full entitlement period in which the person died.

Final instalment

The final instalment is usually credited to the deceased's account, which can then be accessed by the executor of their estate.

In some cases it may be appropriate to make payment directly to the estate.

The final instalment can also be paid directly to the person responsible for finalising the deceased's estate, if:

• it appears there is no next-of-kin
• the pensioner is likely to have died intestate, and
• the identity of that person is known.

Payment can be made immediately, even before the next payday.

Public trustee - pensioner dies intestate

If the instalment after the date of death has not been paid or has been returned, the public trustee should be paid that amount upon request.

The bereavement provisions in the SSAct provide that if a payment is made to an appropriate person following the death of a single pensioner, the Commonwealth is not liable to any action, claim or demand for any further payment.

The Commonwealth's responsibility under the SSAct has been fulfilled if a person who has had at least some responsibility for the deceased's estate has received the payment. It does not matter whether this was the public trustee or some other person.

Community group acts as executor

A community as a whole, or family members, may accept responsibility for finalising the deceased's affairs, instead of appointing an executor. They may also arrange the funeral. In this case, the payment should be made to the individual or group responsible for finalising the deceased's affairs.

Notification provisions & possible overpayments

The SS(Admin)Act provides that a determination that a social security pension is payable to a person continues in effect until the end of the day immediately before the day on which the person dies.

The SSAct allows the Secretary, or delegate, to pay an amount that would have been payable to the person who died for a period between one and 14 days after the person's death (depending on the date of death and the person's payday).

If a person is required to notify of the death of a person and that person complies with their notification requirement but notifies 14 days after the event outside of the scope of SSAct 91(1), but within 28 days of the event occurring (SS(Admin)Act 72(6)) a debt will arise for this period. This is because the notification provisions do not override the operation of SS(Admin)Act 123(1)(e).