Work out a lump sum compensation preclusion period
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the settlement or award and the repayment figure the lawyer accepts, set out the compensation part and divide it by the income cut-out amount for the settlement date. Show whole weeks and round a broken week down. The tool does not write the advice.
- What the lawyer must review
- The lawyer decides whether the 50 per cent rule or the economic-loss amount applies, which cut-out amount is in force on the settlement date, and the start of the period.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Use half the gross lump sum for a settlement, and deduct only periodic compensation the recipient must repay.
- Do not apply the 50 per cent rule where a court, tribunal or arbitrator after a contested hearing has awarded specific amounts for economic loss.
- Divide by the income cut-out amount in force when the lump sum was received, for a lump sum on or after 20 March 1997, and round down to whole weeks.
- For a lump sum after 20 March 1997, do not apply the period to the partner.
Sources
- Social Security Guide 4.13.2.60 Lump sum preclusion period · 2026-10-22
- Social Security Guide 4.13.2.30 Compensation part of a lump sum, 50 per cent rule · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.