3.1.5.80 LBP example calculations - members of a couple living together

Summary

This topic provides 7 examples of LBP calculations for the surviving member of a couple (1.1.M.120) who were living together at the time of the partner's death.

Policy reference: SS Guide 3.1.5.70 The lump sum bereavement payment - member of a couple

Example 1: Prompt notification of death

A pensioner's partner dies on 5 May, with the department notified on 10 May. The couple were receiving $744.40 a fortnight each.

The deceased partner's pension was paid until and including the date before death and then stopped. The end of the entitlement period in which the deceased partner died is 16 May. The surviving partner's pension continued at $987.60 a fortnight.

The LBP is calculated as illustrated in the following table:

EPEDs NDEP Combined couple rate (CCR) New single rate (NR)
6 12 $1,488.80 $987.60
LBP = (6 × (CCR − NR)) + (NDEP × (CCR − NR) ÷ 14)
LBP = (6 × ($1,488.80 − $987.60)) + (12 × ($1,488.80 − $987.60) ÷ 14)
LBP = $3,007.20 + $429.60
Result: $3,436.80

Example 2: Partner dies before first entitlement period end day

One partner has lodged a claim, however the other partner dies before their first entitlement period end day (1.1.E.126) without lodging a claim.

The survivor will be paid the single rate from their first payday. There is no entitlement to a lump sum bereavement payment as the deceased was not a long term social security recipient and was not in receipt of a pension.

Example 3: Deceased partner's payments not stopped immediately

The couple were receiving $744.40 a fortnight each. Two instalments were issued in the deceased's name after their death and the survivor's pension rate remained the same during this period.

The survivor will be paid the single rate from the first entitlement period end day after notification of death, and is entitled to a bereavement payment as illustrated in the following table:

EPEDs CCR NR
5 $1,488.80 $987.60
LBP = (7 − NEPED) × (CCR − NR)
LBP = (7 − 2) × ($1,488.80 − $987.60)
LBP = 5 × $501.20
Result: $2,506.00

Example 4: Survivor has income

The couple were receiving $734.40 a fortnight each, as one member of the couple had assessable income of $360.00 a fortnight. No instalments were issued in the deceased's name after their death and the survivor's new pension rate is effective from the first instalment after death. The surviving partner continues to have assessable income of $360.00 a fortnight, so their new pension rate is $897.60 a fortnight, and they are entitled to a bereavement payment as illustrated in the following table:

EPEDs CCR NR
7 $1,468.80 $897.60
LBP = (7 − NEPED) × (CCR − NR)
LBP = (7 − 0) × ($1,468.80 − $897.60)
LBP = 7 × $571.20
Result: $3,998.40

Explanation: The reason LBP is larger for broken rate cases than for maximum rate cases, where the same amount of income continues to be received, is the different income free area for couple and single pensioners.

Example 5: Deceased had income

The deceased partner had assessable income of $480.00 a fortnight that ceased on their death. There is no other income. No instalments were issued in the deceased's name after their death and the survivor's new pension rate is effective from the first instalment after death. The couple were receiving $704.40 a fortnight each. The survivor's new pension rate will be the maximum single rate of $987.60 a fortnight effective from the first instalment after death. They are also entitled to a bereavement payment as illustrated in the following table:

EPEDs CCR NR
7 $1,408.80 $987.60
LBP = (7 − NEPED) × (CCR − NR)
LBP = (7 − 0) × ($1,408.80 − $987.60)
LBP = 7 × $421.20
Result: $2,948.40

Example 6: Survivor's single rate higher than previous couple rate

The deceased partner had assessable income of $1,600.00 a fortnight that ceased on their death. There is no other income. No instalments were issued in the deceased's name after their death and the survivor's new pension rate is effective from the first instalment after death. The couple were receiving $424.40 a fortnight each. The survivor's new pension rate will be the maximum single rate of $987.60 a fortnight effective from the first instalment after death. There is no bereavement payment as illustrated in the following table:

EPEDs CCR NR
7 $848.80 $987.60
LBP = (7 − NEPED) × (CCR − NR)
LBP = (7 − 0) × ($848.80 − $987.60)
LBP = 7 × -$138.80
LBP = -$971.60
Result: No LBP payable

Explanation: The survivor's new single rate is more than the couple's previous combined pension entitlement.

Example 7: Survivor's single rate is nil

The surviving partner continues to have assessable income of $2,200.00 a fortnight, and there is no other income. No instalments were issued in the deceased's name after their death and the survivor's new pension rate is effective from the first instalment after death. The couple were receiving $274.40 a fortnight each, but the survivor has no further entitlement to a pension due to their income. They are entitled to a bereavement payment as illustrated in the following table:

EPEDs CCR NR
7 $548.80 $0.00
LBP = (7 − NEPED) × (CCR − NR)
LBP = (7 − 0) × ($548.80 − $0)
LBP = 7 × $548.80
Result: $3,841.60

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