Publication:Sea Talk Winter 2008/Military rehabilitation and compensation – you’re entitled
Compensation for death
In the event of a service-related death, a dependent partner is given a choice between a tax-free, lifetime pension or a tax-free lump sum actuarial equivalent of the lifetime value of that pension.
A further tax-free lump sum is payable in addition to the pension or pension equivalent lump sum.
There are also substantial benefits payable for dependent children. A tax-free lump sum is payable in addition to a weekly pension payment.
Dependent children may also receive assistance for education.
A dependent partner is also entitled to a DVA Repatriation Gold Card, which provides the partner and dependent children with health care benefits the same as those provided to war widows.
Rehabilitation
The MRCS focusses on providing treatment and rehabilitation services to help ADF members suffering from a service-related injury or illness make as full a recovery as possible and return to their normal military duties or, after discharge, civilian work if they are able.
For current serving members, most rehabilitation services are delivered through Defence.
Medical discharge is the last option and, wherever possible, ADF members who no longer meet health standards for their trade or profession are offered the option of retraining for another employment category.
For those who are medically unfit for service, every assistance is given for transition to civilian life.
Information is available at: www.defence.gov.au/health/DRS/i-drs.htm and www.mrcs.gov.au
Compensation for incapacity and disability
Members who cannot continue in ADF service, may be eligible for a range of benefits
including treatment, impairment compensation or incapacity payments and DVA White or Gold Card benefits, depending on the nature of their illness or incapacity.
A permanently impaired ADF member may choose between a tax-free lump sum, weekly
pension or a combination of both. The amounts vary according to the degree of disability.
Other benefits may include vocational and social rehabilitation, home help, attendant care, alterations to residence and assistance with the purchase, modification or maintenance of a motor vehicle.
Superannuation benefits on death and invalidity
Superannuation benefits may also be payable in the event of an ADF member’s death. These benefits may be paid to eligible recipients or the member’s estate, depending on marital or partnership status, and entitled dependents.
In addition to statutory compensation, a member discharged on medical grounds may be entitled to superannuation invalidity benefits depending upon the degree of incapacity and ability to undertake other employment.
Superannuation benefits vary according to which military superannuation scheme applies. For the Military Superannuation and Benefits Scheme, visit: www.militarysuper.gov.au/. For the Defence Force Retirement and Death Benefits Scheme, visit www.dfrdb.gov.au/
Private insurance
The MRCS and military superannuation schemes offer a comprehensive range of benefits and substantial payments so that ADF members and their dependents may maintain an appropriate standard of living. Nevertheless, ADF members have differing personal circumstances, financial needs and commitments.
Should a member have significant financial commitments such as a mortgage or consumer finance, they may also wish to consider private insurance to supplement military compensation or to pay out their debts in the event of death or disability. Members should obtain independent professional advice when considering insurance matters.
For general guidance, visit the ADF Consumer Council website: www.adfconsumer.gov.au.
DEFGRAM 186/2007 available on the Defence Restricted Network also has information about the Services Security Plan injury and accident insurance.
The tax-free lump sum varies according to a dependent partner’s age:
Age 25 - $445,321
Age 35 - $405,735
Age 45 - $356,667
Age 55 -$297,612
Weekly pension entitlement
Lifetime, tax free: $281.35
Financial advice
To assist a dependent partner choose between a pension or a lump sum equivalent, $1378.98 may be paid for independent financial advice.
A Gold Card covers a comprehensive range of medical, hospital, pharmaceutical, dental and allied health services for which DVA has arrangements with registered health care providers.
For more information, go to:
www.dva.gov.au/factsheets/default.htm
Additional lump sum entitlement
The tax-free additional lump sum varies according to a dependent partner’s age:
Age 25 - $114,915
Age 35 - $114,915
Age 45 - $107,917
Age 55 - $91,369
Lump sum entitlement
A tax-free lump sum is payable for each child: $68,949
Weekly pension
Weekly tax-free pension: $75.84
Pension and incapacity benefits
First 45 weeks of incapacity: 100 per cent of normal ADF pay and pay-related allowances.
After 45 weeks of incapacity: 75 per cent of normal ADF pay and pay-related allowances.
A Special Rate Disability Pension of $469.00 per week tax-free may apply depending upon degree of incapacity, subject to other Government benefits
Permanent impairment
The maximum lump sum payment is $350,964 and the maximum weekly pension is $267.83 tax-free.Dependent children
An additional lump sum of $68,949 may be paid for each dependent child, depending upon the degree of permanent impairment.
Financial advice
To assist a member choose between a weekly pension or a lump sum or a combination of both, $1378.98 may be paid for independent financial advice.
