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# 3.1.5.90 LBP example calculations - members of a couple where separated due to illness or respite care or death of both members of a couple

## Summary

This topic provides 3 examples of LBP calculations for members of a couple (1.1.M.120) who either:

• were separated due to illness or respite care at the time of the partner's death, or
• both died within a short period of time.

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 November, with the department notified on 10 November. The deceased partner was residing in a nursing home (1.1.N.140), and the surviving partner resides in the family home. The couple were receiving \$1,026.50 each a fortnight.

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 November. The surviving partner's pension continued at \$1,026.50 a fortnight.

In this case, the combined couple rate is what WOULD have been payable to the couple on the payday immediately following 10 November had they been able to reside together.

The LBP is calculated as illustrated in the following table:

EPEDs NDEP Combined couple rate (CCR) New single rate (NR)
6 12 \$1,547.60 \$1,026.50
LBP = (6 multiplied by (CCR minus NR)) plus (NDEP multiplied by (CCR minus NR) then divided by 14).
LBP = (6 x (\$1,547.60 - \$1,026.50)) + (12 x (\$1,547.60 - \$1,026.50) / 14)
LBP = \$3,126.60 + \$446.66
Result: \$3,573.26

## Example 2: Delayed notification of death

This example is the same as example 1, EXCEPT that the department was not notified until 11 December.

The deceased partner's pension was paid for 3 paydays following death. The surviving partner is entitled to the instalments paid after the death in both of their names. The surviving partner's pension continued at \$1,026.50 a fortnight.

The surviving partner's LBP was calculated as illustrated in the following table:

EPEDs Combined couple rate (CCR) New single rate (NR)
4 \$1,547.60 \$1,026.50
LBP = ((7 minus NEPED) multiplied by (CCR minus NR)) minus ((combined single rates minus CCR) multiplied by NEPED)
LBP = ((7 - 3) x (\$1,547.60 - \$1,026.50)) - ((\$1,026.50 x 2 - \$1,547.60) x 3)
LBP = (4 x \$521.10) - (\$505.40 x 3)
LBP = \$2,084.40 - \$1,516.20
Result: \$568.20

## Example 3: Death of both members of a couple advised at the same time

The first pensioner died on 2 December, and their surviving partner on 23 December. The department was notified of both deaths on 24 December. The couple were receiving the maximum rate of pension.

Both pensions are cancelled following the final payment on 26 December. Neither the estate of the first partner, nor the estate of the second partner is entitled to the instalment paid for the first partner on payday 26 December. That pension instalment must be recovered. The first pension instalment following the death of the first pensioner is not recoverable.

Explanation: This is because the surviving partner had not had the benefit of the second payment.

The estate of the second partner is entitled to the payment made in their name for 26 December.

Explanation: The amount is not recoverable because one pension instalment is payable following the death of a single pensioner.

The combined couple rate of \$1,547.60 is the survivor's correct entitlement for 26 December.

Explanation: The single rate is NOT paid in these circumstances even though the second partner is technically single.

The LBP payable to the estate of the second partner is calculated as illustrated in the following table. The rates used are those applying on 26 December.

EPEDs Combined couple rate (CCR) New single rate (NR)
6 \$1,547.60 \$1,026.50
LBP = (7 minus NEPED) multiplied by (CCR minus NR).
LBP = (7 - 1 ) x (\$1,547.60 - \$1,026.50)
LBP = 6 x \$521.10
Result: \$3,126.60

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