27ACalculation of arrears of pension

#### 27A Calculation of arrears of pension (1) This section applies if: (a) a pension becomes payable, or becomes payable at an increased rate, under this Part to a veteran from a date (the operative date) before the date on which a decision to grant the pension, or to increase the rate of the pension, (the decision) is made; and (b) the veteran is a member of a couple or was a member of a couple at any time during the period (the arrears period) between: (i) the operative date; and (ii) immediately before the first pension period during which an instalment of the pension, or an instalment of the pension at the increased rate, is paid to the person; and (c) the veteran’s partner was receiving: (i) a social security pension or benefit; or (ia) a service pension; or (ii) income support supplement; or (iii) a veteran payment; at any time during the arrears period; and (d) the rate at which the social security pension or benefit, service pension, income support supplement or veteran payment is payable to the veteran’s partner is reduced as a result of the pension becoming payable to the veteran, or becoming payable to the veteran at an increased rate, as the case requires; and (e) an amount (the recovered amount), or no amount, in respect of that reduction has been deducted under section 205 or section 205AA. > Note: The amount of arrears of pension payable to a veteran may also be affected by section 205 or 205AA. (2) The amount of the pension payable to the veteran in respect of the arrears period is reduced by an amount calculated as follows: Method statement Step 1. Work out the total amount of the pension that would have been paid to the veteran during the arrears period if the decision had been made on the operative date. Step 2. Work out the total amount (if any) of the pension that was paid to the veteran during the arrears period. Step 3. Subtract the amount obtained in Step 2 from the amount obtained in Step 1. The result is called the provisional arrears. Step 4. Work out the total amount of social security pension or benefit, service pension, income support supplement or veteran payment that was paid to the veteran’s partner during the arrears period. Step 5. Work out the total amount (if any) of social security pension or benefit, service pension, income support supplement or veteran payment that would have been payable to the veteran’s partner during the arrears period if the decision had been made on the operative date. Step 6. Subtract the amount obtained in step 5 from the amount obtained in step 4. The result is called the notional excess payment. Step 6A. Subtract the recovered amount (if any) from the notional excess payment. The result is called the excess payment. Step 7. If the excess payment is equal to or more than the provisional arrears, the pension payable to the veteran in respect of the arrears period is reduced by the amount of the provisional arrears. Step 8. If the excess payment is less than the provisional arrears, the amount of the pension payable to the veteran in respect of the arrears period is reduced by the amount of the excess payment.