Instalments of pension
121 Instalments of pension
Payment in arrears in relation to pension periods
Pension is payable:
in arrears; and
by instalments relating to each pension period.
Total instalment relating to a pension period
Subject to subsections (3) and (4), the amount payable to a person as an instalment of pension in relation to a pension period is the total amount of pension payable to the person for the days in that period on which pension was payable to the person.
Circumstances in which no instalment is payable in relation to a pension period
If a person who is receiving a pension is ineligible for payment in respect of the last day of a pension period, no amount is payable to the person as an instalment of pension in relation to the pension period.
Subject to subsection (4AA), if a person who is receiving a pension dies, no amount is payable to the person as an instalment of pension in relation to the pension period in which the person died.
Exception—pension under Part II or IV at rate determined under Division 4 of Part II
If a person who is receiving a pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II dies, an amount is payable to the person’s estate as an instalment of that pension in relation to the pension period in which the person died.
Pensions generally payable fortnightly
Unless subsection (5A) applies to the person, an instalment of pension is payable to a person on the next payday after the end of the pension period to which the instalment relates.
Pensions may be payable weekly
The Commission may determine, in writing, that the total amount of an instalment of pension payable to a person in relation to a pension period is payable to the person in 2 payments (the part payments) if the person is a member of a class specified under subsection (5C).
A determination made under subsection (5A) is not a legislative instrument.
The Commission may, by legislative instrument, specify a class of persons for the purposes of subsection (5A).
The first of the part payments:
is not to exceed the total of the amount of pension (calculated in accordance with this section) payable to the person for days that:
are days on which the pension was payable to the person; and
are included in the first 7 days of the pension period; and
is payable at a time determined by the Commission that is after the first 7 days of the pension period.
The other of the part payments:
is the excess of the amount that is payable to the person as the instalment of pension in relation to the pension period over the first of the part payments; and
is payable at a time determined by the Commission that is after the end of the pension period.
If the total amount of pension payable to a person in relation to a pension period is payable to the person in part payments, then it is taken for the purposes of this Act that:
a single instalment of the pension is payable in relation to the period; and
that instalment is payable when the last of the part payments is, or is to be, made; and
that instalment is equal to the total of the part payments.
The total of the part payments equals the amount worked out under subsection (2) as the amount payable to the person as the instalment of the pension in relation to the pension period.
However, section 122B (about deductions from instalments) applies as if each of the part payments were a separate instalment.
Calculation of rate of pension payable
For the purpose of the calculation of the amount of an instalment of pension, the rate of pension payable to a person for a day is calculated by dividing the fortnightly rate of pension by 14.
Special rules for energy supplement payable under section 62A or 62B
For energy supplement payable under section 62A or 62B:
this section has effect subject to section 62D (which is about quarterly payment of energy supplement); and
subsection (2) of this section has effect as if energy supplement covered by an election in force under section 62D by a person on a day were not payable to the person for the day.
Definitions
In this section:
pension includes energy supplement payable under section 62A or 62B, veterans supplement under Part VIIA or an allowance under this Act, other than loss of earnings allowance under section 108, but does not include a pension or allowance to which section 58A applies.
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