When a member of a pensioner couple passes away, the
surviving spouse may receive a lump sum bereavement payment.
The lump sum bereavement payment is calculated over a
14-week period from the date of death. It is calculated as the difference
between:
·
Combined couple rate of Age Pension received
prior to death, and
·
The new single rate of pension received by the
surviving spouse
If the new single rate of pension received by the surviving
spouse is greater than the combined couple rate, a lump sum bereavement payment
will not be paid.
If the surviving spouse is eligible, any Age Pension
payments paid to the deceased after the date of death during the 14-week
bereavement period can be retained by the surviving spouse. However, this will
reduce the amount of lump sum bereavement payment that may be payable.
If the couple are separated due to ill health (i.e., one or
both spouses are in residential aged care) and receiving the single rate of Age
Pension each, the lump sum bereavement payment is then calculated using the couple
rate of pension (as if they were living together). This would then effectively
reduce the amount payable.
