2.3.23 Purpose
2.3.24 Definitions
2.3.25 Member eligible for payment of
a special benefit for management-initiated early retirement
2.3.26 Limits on payment of a special
benefit for management-initiated early retirement
2.3.27 Amount of special benefit
2.3.28 Repayment of special benefit
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1. |
The purpose of this Division is to provide for the payment of a special benefit under Part 3 of Chapter 8 of the Defence (Personnel) Regulations 2002, to members of the Permanent Forces. |
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2. |
This payment is an incentive to the class of members who are no longer widely employable and who are in positions that would normally provide promotion opportunities to others, to retire in order that the career structure of the ADF is maintained. |
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3. |
The payment is not a 'golden handshake' or a performance management tool. |
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4. |
A special benefit is offered on the exercise of a discretion, it is not an automatic entitlement. |
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The following table contains definitions for the purpose of this Division. |
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Term |
Definition |
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Defence (Personnel) Regulations 2002 |
Means the Defence (Personnel) Regulations 2002 as in force from time to time. |
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Management-initiated early retirement |
Also known by the acronym MIER, this is a scheme to offer a financial incentive for early retirement to a small class of members, to allow for change in the nature of the ADF workforce. It is not a redundancy scheme. Its purpose is discussed in more detail at paragraph 2.3.23.a. |
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Special benefit |
A benefit offered under Part 3 of Chapter 8 of the Defence (Personnel) Regulations 2002 and, if accepted, payable under this Division. |
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1. |
A management-initiated early retirement payment may only be made under this Division if, before the special benefit is offered to a member, the use of the following measures is first considered as an alternative to the offer of a special benefit. |
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a. |
Extension of any relevant compulsory retirement age (not limited to the member's compulsory retirement age). |
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b. |
Fixed tenure appointment. |
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c. |
Limited tenure promotion (not limited to the member's promotion). |
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d. |
Appointment for a specified period. |
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2. |
A member who meets all of the following conditions is to be paid a special benefit for management-initiated early retirement under this Division. |
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a. |
The member has attained either of the following ranks, or a higher rank. |
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i. |
An officer rank of Major. |
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ii. |
A non-commissioned rank of Warrant Officer Class 2. |
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b. |
The member has completed 20 years of service. |
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c. |
The member has completed at least two years at their current rank. |
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d. |
The member has at least 12 months of service remaining before they reach either of the following dates. |
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i. |
The last day of the member's compulsory retirement age under the Defence (Personnel) Regulations 2002, including any age extension that has been made. |
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ii. |
The last day of the member's fixed period of service. |
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e. |
The member accepts the offer of a special benefit for management-initiated early retirement under Part 3 of Chapter 8 of the Defence (Personnel) Regulations 2002. |
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1. |
No amount of special benefit is payable if any of the following circumstances apply to the member. |
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a. |
The member's performance is not satisfactory. |
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b. |
The member is subject to an investigation for unacceptable behaviour. |
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c. |
The member is subject to disciplinary action. |
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d. |
The member is subject to an administrative sanction. Example: The member is subject to a formal censure or warning for misconduct. |
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2. |
A member's eligibility for a special benefit is suspended while any of the following types of complaint made by the member in accordance with regulation 80 of the Defence (Personnel) Regulations 2002 are investigated. |
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a. |
A redress of grievance complaint made to the member's Service Chief under regulation 76 of the Defence Force Regulations 1952. Note: Regulation 80 of the Defence (Personnel) Regulations 2002 permits a member to apply direct to their Service Chief without the need for the Commanding Officer to first investigate the complaint. |
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b. |
A complaint to the Defence Force Ombudsman under the Ombudsman Act 1976, as in force from time to time. |
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c. |
A complaint to the Minister. |
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Note: Once the complaint is resolved, the special benefit may still be paid, if it has not been refused by the member. |
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3. |
The member must not be paid a special benefit if the member refuses to be transferred to the category of the Reserves in the period stated in the notice of offer made under regulation 74 or 77 of the Defence (Personnel) Regulations 2002. |
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Note: A member's refusal of a special benefit for MIER is final. The member cannot choose to take the special benefit later, after they have initially refused it, or after the period set out in the notice of offer has ended. The member must serve for the subsequent period set out in the notice of offer, (unless the member applies to resign and is permitted to do so in the meantime). This is a period of 13 months from the date of the notice of offer, or a later day specified in the notice of offer. The benefit is not payable even though the member may be transferred to the Reserves or have their service terminated at the end of the subsequent period. See: Regulations 78 and 79 of the Defence (Personnel) Regulations 2002 |
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1. |
A member who accepts the offer of a special benefit under Part 3 of Chapter 8 of the Defence (Personnel) Regulations 2002 is to be paid the sum of the following amounts. |
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a. |
A total amount, up to the amount that the member would otherwise be paid for 48 weeks salary, made up of both of the following amounts. |
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i. |
A fortnight’s salary for each completed year of service that is recognised for long service leave. See: Chapter 5 Part 3, Long service leave, for a definition of this service. |
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ii. |
A pro rata payment for each part year of such service completed. |
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b. |
An amount payable instead of the balance of the initial period specified in the period of notice, if the member chooses to be transferred to the Reserves or to cease serving as a member before the day specified in the notice of offer as the last day for accepting the special benefit for management-initiated early retirement. The amount is to be paid at the rate the member would receive had they taken pay instead of recreation leave. |
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2. |
In this clause, salary includes service allowance. See: Chapter 4 Part 2 |
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The member must repay to the Commonwealth any amount previously paid to the member under this Division, if all these conditions are met. |
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a. |
The member has been paid a special benefit under this Division as a management-initiated early retirement. |
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b. |
The member begins a further period of continuous full-time service (as a Reserve or a Permanent Forces member) within one year of ceasing to be a member, or transferring to the Reserves, because of their retirement. |
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c. |
The Minister did not authorise the further period of continuous full-time service. |