Examples of clause 177 lump sum death benefit – calculation of additional compensation fees

Clause 177 provides the formula:

A + ((F X B) + C) + (D X E) + (F X G) = Fee

Where:

• A = $1,309 fixed trust opening, closing and financial plan establishment fee
• B = variable trust establishment fee component as specified in Table 1, Column 2 that corresponds to the lump sum death benefit amount specified in Table 1, Column 1
• C = variable trust establishment fee component as specified in Table 1, Column 3 that corresponds to the lump sum death benefit amount specified in Table 1, Column 1
• D = $917.82 fixed annual fee
• E = Annuity formula to discount annual payments as specified in Table 2, Column 2 that corresponds to the age of the dependant specified in Table 2, Column 1
• F = lump sum death benefit amount, plus interest (if any), awarded by the Commission and ordered to be paid to the NSW Trustee
• G = Annuity formula to discount annual payments as specified in Table 2, Column 3 that corresponds to the age of the dependant specified in Table 2, Column 1

Scenario 1

• Liability is accepted in respect of a workplace death. The Personal Injury Commission apportioned the lump sum death benefit amount between the dependants. The 11 year old daughter of the deceased was awarded $185,000 as her share of the lump sum death benefit amount.
• The Commission ordered the child’s money to be paid to the NSW Trustee in trust for the benefit of the child. The Commission also ordered additional compensation fees of $28,665.18
• The additional compensation fees are calculated as provided for in the Workers Compensation Regulation 2016 as follows:
  • A + ((F X B) + C) + (D X E) + (F X G) = Fee
  • 1309 + (185,000 x 0.0275 +1100) + (917.82 x 5.79) + (185,000 x 0.0857) = $28,665.18

Scenario 2

• Liability is accepted in respect of a workplace death. The Personal Injury Commission apportioned the lump sum death benefit amount between dependants. There are two minor dependent children:
  • the eight year old is awarded $210,000 and
  • the 14 year old is awarded $95,000.
• The Commission ordered the children’s money to be paid to the NSW Trustee in trust for the benefit of the children. The Commission ordered additional compensation fees of:
• $41,829.57 for the eight year old
• $11,739.76 for the 14 year old
• The additional compensation fees are calculated as provided for in the Workers Compensation Regulation 2016 as follows:

Eight year old

• A + ((F X B) + C) + (D X E) + (F X G) = Fee
• 1309 + ((210000 X 0.0165) + 3300) + (917.82 X 7.72) + (210000 X 0.1270) = $41,829.57

14 year old

• 1309 + ((95000 X 0.0385) + 0) + (917.82 X 3.55) + (95000 X 0.0370) = $11,739.76