The preclusion period usually starts from the date of your injury. If you got periodic compensation, such as weekly workers compensation payments, it starts the day after your periodic payments stopped.
We work out the number of weeks in a preclusion period by taking 50% of the lump sum payment. We then divide that by the limit for a single rate pension under the income test, at the date of settlement.
If your lump sum was awarded by a court or tribunal after a contested hearing, we calculate it using the amount awarded for loss of earnings.
If you get more than one lump sum for the same injury, those payments are added together when we calculate your preclusion period.
They will only be added together if one or more of the lump sums has a loss of earnings.
Multiple lump sums can be paid for all of the following:
- permanent impairment
- pain and suffering
- an interim payment for loss of earnings.