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Tuesday, 6 September 1983
Page: 444

Question No. 278


Mr Macphee asked the Minister representing the Minister for Social Security, upon notice, on 26 May 1983:

(1) Is it a fact that if a person dies on the date of issue of a pension cheque the pensioner's estate is entitled to the full fortnight's pension contained in the cheque.

(2) Is it also a fact that where the pensioner dies before the fortnightly cheque is due but after it is posted the pensioner's estate is obliged to refund the entire cheque rather than only that amount which relates to the period after the recipient's death.

(3) Is it further a fact that where a pensioner dies before the cheque is posted no pro rata payment is made for the period during which the pensioner lived after the last payment of the pension.

(4) If the positions outlined in parts (1) to (3) are correct, will he change this practice to the more equitable pro rata payment to cover the last few days of the pensioner's life.


Dr Blewett —The Minister for Social Security has provided the following answer to the honourable member's question:

(1) to (3) Yes: pensions are payable neither in arrears nor in advance. Rather each instalment is due and payable on each and every pay-day during which the pensioner remains eligible.

(4) Under a pro rata system any additional payment to the pensioner's estate on death would, on average, be offset by a smaller instalment paid to the pensioner when pension was first granted. Overall it is considered that the balance of advantage lies with the present system.