PACMAN Chapter 3 Part 5 Division 12: Navy – Communication Information Systems completion bonus scheme

Division 12: Navy – Communication Information Systems completion bonus scheme

3.5.88A  Purpose
3.5.89   Payments under this Division
3.5.90   Effective service
3.5.91   Members this Division applies to
3.5.92   Members this Division does not apply to
3.5.93   Applications to join the scheme
3.5.94   Acceptance
3.5.95   Obligation payment
3.5.96   Completion bonus
3.5.97   Extension or reduction of the period
3.5.98   Bonus not payable when member leaves the scheme
3.5.99   Pro rata payment of bonus when member leaves scheme
3.5.100  Calculation of the bonus amount
3.5.101  Administration of payment

3.5.88A Purpose

This Division provides an obligation payment and a completion bonus for sailors in the Communications and Information Systems employment category in the Navy. The payment is designed to encourage members to stay in the category.

3.5.89 Payments under this Division

This Division provides for two different types of payment.

An obligation payment, paid on joining the scheme.

See: Clause 3.5.95, Obligation payment

A completion bonus, paid to members who remain in the scheme for two years.

Related Information: Clause 3.5.96, Completion bonus

3.5.90 Effective service

1.	For the purpose of this Division, *effective service* means service that meets all these conditions.
	a.	It is continuous full time service.
	b.	It is paid. Exception: Unpaid leave of less than 21 calendar days.
	c.	It is not ineffective service under subclauses 2 or 3.
2.	This table lists a range of leave types and activities and sets out how a period of that leave or activity counts toward member's period of effective service.

Item	Activity	Effect
1.	Part time leave without pay	The unpaid component of a part-time leave without pay working pattern does not count as effective service.
2.	Leave at full pay Examples: Recreation leave, full pay long service leave	The whole period counts as effective service.
3.	Unpaid leave for less than 21 calendar days Examples: Leave without pay, maternity leave without pay	The whole period counts as effective service.
4.	Unpaid leave for 21 calendar days or more Examples: Leave without pay, maternity leave without pay	The whole period does not count as effective service
5.	Absence without leave
6.	Imprisonment, detention or suspension from duty without pay
7.	Leave at half pay Example: Long service leave at half pay	Half the period of the leave counts as effective service.
8.	An undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.	The whole period does not count as effective service.
9.	A period when the member was discharging another undertaking for further service. Exception: An undertaking for further service associated with a promotion.
10.	A period when the member was discharging another return of service obligation, and item 11 of this table does not apply.
11.	A period when the member is discharging a return of serviced obligation, that is associated with the relevant training or an overseas posting. Exception: A period of initial category training. In this table, *relevant training* means professional or trade training that is directly relevant to the member's occupation.	For this member, any of these periods are effective service. a. The period of the training. b. The period of the overseas posting. c. The period of the return of service obligation.

3.5.91 Members this Division applies to

1.	A member who meets all the following conditions is eligible to apply for a completion bonus under this Division.
	a.	They have completed the initial minimum period of service (IMPS). Note: This concept is defined in Determination 12A, made by the Chief of Navy under sub-regulations 90(6), 90(7), 91(2), 97(3), 97(6) and 98(2) of the Defence (Personnel) Regulations 2002. Related Information: Determination 12A can be found in Defence Instruction (General) 33–5, Arrangements for service in the Australian Defence Force
	b.	They hold any of the following ranks.
		i.	Leading Seaman.
		ii.	Petty Officer.
	c.	They are entitled to salary for a Communications and Information Systems employment category mentioned in Schedule B.11 Part 1 of DFRT Determination No. 15 of 2008, Salaries.
2.	An eligible member who has less than two years to serve from the date of their application until the end of their current fixed period of service or enlistment is taken not to be eligible. Exception: A member is eligible if they seek an extension for the two year period of the completion bonus to whichever of the following limits is relevant.
	a.	The member's fixed period of service.
	b.	The member's compulsory retirement age.
	See: For paragraph 2.a., Form PE012, Extension of service for a fixed period. Example: A Petty Officer Communication Information Systems is on a fixed period of service that is due to end on 1 July 2007. The member is able to apply for an extension of their service until 1 July 2008. The member chooses not to apply for an extension. The member is not eligible to join the bonus scheme.
3.	This Division ceases to apply to all members on 1 January 2011.

3.5.92 Members this Division does not apply to

	A member in any of the following circumstances is not eligible to apply for a completion bonus under this Division.
	a.	The member is serving an initial minimum period of service (IMPS).
	b.	The member is an officer.
	c.	The member is serving a period of undertaking for further service, under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.
	d.	The member first meets the conditions for eligibility under subclause 3.5.91.1 after 31 December 2008.
	e.	The member does not apply before 31 January 2009.

3.5.93 Applications to join the scheme

A member may apply to undertake two year's service for the purpose of the obligation payment and completion bonus in this Division.

An application must be made on the application form at Parts A to D of Annex 3.5.M.

See: Annex 3.5.M, Forms for Navy – Communication Information Systems completion bonus.

The application must be made before 31 January 2009.

3.5.94 Acceptance

1.	The CDF may accept an eligible member's application in writing.
2.	Upon notification of acceptance of an application by CDF, the member's undertaking to serve under this Division is taken to have commenced on whichever of the following dates is relevant.
	a.	For a member who is eligible on the day they apply to undertake service under this Division – the first day on or after 1 July 2006 when the member met the conditions for eligibility under clause 3.5.91.
	b.	For a member who becomes eligible after they lodge an application – the day the member first becomes eligible to make an undertaking for this Division under clause 3.5.91.

Persons who can make the decision under subclause 3.5.94.1 on behalf of the CDF:

Director Navy People Career Management Agency

3.5.95 Obligation payment

1.	A member whose application is accepted for the completion bonus scheme is to be paid an obligation payment under this clause.
2.	The obligation payment is calculated using the following table.

Item	A member with the rank of...	is to be paid to an obligation payment of...
1.	Leading Seaman	$5,000.
2.	Petty Officer	$4,000.

3.	A member who does not serve in the Communication Information Systems category for two years must repay an amount of the obligation payment for their circumstances required under the following table.

Item	A member...	is...
1.	who is entitled to a pro rata completion bonus under clause 3.5.99 Exception: A member covered by item 2 of this table. See: Clause 3.5.99, Pro rata payment of bonus when member leaves scheme	not required to repay the obligation payment.
2.	who commences to serve an undertaking for further service (UFFS) before they have completed two years effective service under this Division Authority: Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005	required to repay part of the obligation payment. The amount to be repaid is the same proportion of the obligation payment as the proportion of the member's two-year period of effective service that the member has not served on the day they commence the UFFS.
3.	who does not complete their two years effective service under this Division and who is not covered by items 1 or 2	required to repay the full amount of the obligation payment.

...

3.5.96 Completion bonus

1.	The member is to be paid a completion bonus at the rate in the table for the member's rank, if they complete two years of eligible service in accordance with their undertaking under this Division and that service is all effective.

Item	A member with the rank of...	is to be paid to a completion bonus of...
1.	Leading Seaman	$10,000.
2.	Petty Officer	$4,000.

	Related Information: Clause 3.5.97 explains how the bonus is worked out for a member who provides ineffective service during the two-year period of their undertaking.
2.	The bonus is calculated using the method in clause 3.5.100. See: Clause 3.5.100, Calculation of the bonus amount
3.	If the member holds more than one rank listed in the table during the period of effective service, then the member is to be paid a pro rata bonus amount for each part of the period served at a different rate.
	Example: A member serves one year as a Leading Seaman and then is promoted and serves a further year as a Petty Officer. One year at the Leading Seaman rate is equivalent to one half of $10,000, or $5000. One year at the Petty Officer rate is equivalent to one half of $4,000, or $2,000. The member is to be paid the sum of these amounts, $7,000.

3.5.97 Extension or reduction of the period

1.	If at the end of two years from the date the member is taken to have commenced to serve under this Division, the member has not completed two years of effective service, the amount of the bonus may be paid at a reduced rate.
2.	The reduced rate is the amount of bonus less a pro rata amount for the period of non-effective service, worked out based on the rate of bonus applicable to the member at the time the non-effective service occurred. See: Clause 3.5.100, Calculation of the bonus amount
3.	The member may elect in writing to continue serving under this Division until they have completed the full two years of effective service, using the form at Part E of Annex 3.5.M.
4.	If the member makes an election under subclause 3, and completes the full two years of effective service, the bonus becomes payable to them under clause 3.5.96.
5.	If the member makes an election under subclause 3 and cannot complete the full two years of effective service before this Division ceases to apply, then the member may be paid a pro rata amount of completion bonus for the period of effective service that they have performed under this Division.

3.5.98 Bonus not payable when member leaves the scheme

	A member who has applied for a bonus under this Division ceases to be eligible for the bonus if they meet any of these conditions before they complete the required two years of effective service.
	a.	The member voluntarily transfers out of a Communications and Information Systems employment category mentioned in Schedule B.11 Part 1 of DFRT Determination No. 15 of 2008, Salaries.
	b.	The member voluntarily transfers to the Reserve Forces.
	c.	The member resigns.

3.5.99 Pro rata payment of bonus when member leaves scheme

	A member who has applied for a bonus under this Division is eligible for a pro rata payment of the bonus under clause 3.5.96 if their service under this Division ceases for one of these reasons.
	a.	The member dies.
	b.	The member is promoted to Chief Petty Officer.
	c.	The member is commissioned as an officer.
	d.	The member applies to extend their period of service or enlistment but the extension is refused.
	e.	The member's service is terminated due to physical or mental incapacity that is not within the member's control. See: Regulation 87 Defence (Personnel) Regulations 2002.
	f.	For Service reasons, the member is transferred out of a Communications and Information Systems employment category mentioned in Schedule B.11 Part 1 of DFRT Determination No. 15 of 2008, Salaries.
	g.	The member is made redundant or retrenched.
	h.	The member commences to serve an undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.
	i.	The member is reduced in rank to a rank that is not eligible under this Division.
	j.	The bonus scheme ceases.

3.5.100 Calculation of the bonus amount

1.	This clause shows how to calculate an amount of completion bonus that a member is entitled to under this Division.
2.	This table shows the first stage of calculating the amount of a member's completion bonus.

Step	Action
1.	Work out the number of calendar days in the period, starting on the day the member was eligible to join the completion bonus scheme and ending on the day before the date the member is entitled to be paid the completion bonus. Example: A Petty Officer CIS is eligible for the scheme on 1 September 2006. On 1 October 2007 the member is medically retired. There are 395 calendar days in the period.
2.	In the period calculated above, did the member work in more than one of the ranks in the table in subclause 3.6.96.1?
3.	If the answer to Step 2 is 'no', subclause 3 provides the rest of the process for calculating the amount of a member's completion bonus. If the answer to Step 2 is 'yes', subclause 4 provides the rest of the process for calculating the amount of a member's completion bonus.

These tables show the second stage of calculating the amount of a member's completion bonus. It applies where the member held only one rank for the period of the bonus and the answer to Step 2 of the table in subclause 2 is 'no'.

Related Information: If the answer to Step 2 of the table in subclause 2 is 'yes', see subclause 4.

Step	Action
1.	Take the number of days determined through Step 1 of the table in subclause 2. Subtract the number of calendar days of ineffective service in the period.
2.	Divide the outcome of Step 1 above by 730, which is the number of days within two calendar years. If the period includes 29 February, divide by 731.
3.	Find the completion bonus rate that corresponds to the member's rank. See: The table in subclause 3.5.96.1.
4.	Multiply the outcomes of Steps 2 and 3 above.
5.	The member may be paid the outcome of Step 4.

Example: An Able Seaman CIS is promoted to the rank of Leading Seaman on 1 May 2007 and becomes eligible for the completion bonus scheme. From 2 to 31 August 2008 the member is on leave without pay. On 1 March 2009 the member is retired on medical grounds.

Reference	Step	Example action
Subclause 3.5.100.2	1.	There were 670 calendar days between 1 May 2007 and 28 February 2009.
	2.	The member only worked in one of the ranks in the table in subclause 3.5.96.1 (i.e. as a Leading Seaman). The answer to Step 1 of the table in subclause 2 is no.
	3.	As the answer to Step 2 of the table in subclause 2 is no, the rest of the calculations must be done in accordance with subclause 3.
Subclause 3.5.100.3	1.	The 30 days the member was on leave without pay was ineffective service.
	2.	670 – 30 = 640 calendar days
	3.	640 divided by 731 = 0.87551
	4.	A Leading Seaman CIS has a completion bonus rate of $10,000.
	5.	0.87551 multiplied by $10,000 = $8,755.13.

This table shows the second stage of calculating the amount of a member's completion bonus. It applies where the member held more than one rank for the period of effective service under this Division and the answer to Step 2 of the table in subclause 2 is 'yes'.

Related Information: If the answer to Step 2 of the table in subclause 2 is 'no', see subclause 3.

Step	Action
1.	Take the number of days determined through Step 1 of the table in subclause 2. Work out how many calendar days there were in the period that the member worked at each rank. Example: A Leading Seaman CIS is promoted to the rank of Petty Officer 150 calendar days before the end of the period in the table in subclause 2. For that member, the period is divided as follows: a. 580 days as Leading Seaman. b. 150 days as Petty Officer.
2.	Subtract the number of calendar days of ineffective service from the period in which it fell.
3.	Divide the outcome of each period in Step 2 above by 730, which is the number of days within two calendar years. If one of the periods includes 29 February, divide each period in Step 2 above by 731.
4.	Find the completion bonus rate that corresponds to each rank the member held during the periods in Step 1. See: The table in subclause 3.5.96.1.
5.	Multiply each outcome of Step 3 above by the corresponding completion bonus rate determined in Step 4 above.
6.	Add the results of each calculation in Step 5.
7.	The member may be paid the outcome of Step 6.

Example: A Leading Seaman CIS entered the scheme on 1 July 2006. On 1 September 2007 the member is promoted to the rank of Petty Officer. The member had five days of absence without leave, in January 2008.

Reference	Step	Example action
Subclause 3.5.100.2	1.	The member's period is from 1 July 2006 to 30 June 2008. This is 731 calendar days.
	2.	The member worked in more than one of the ranks in subclause 3.5.96.1, so the answer to Step 2 of the table in subclause 2 is yes.
	3.	As the answer to Step 2 of the table in subclause 2 is yes, the rest of the calculations must be done in accordance with subclause 4.
Subclause 3.5.100.4	1.	The member had these periods of service.
		a.	From 1 July 2006 to 31 August 2007 the member was a Leading Seaman. This is 427 calendar days.
		b.	From 1 September 2007 to 30 Jun 2008 the member was a Petty Officer. This is 304 calendar days.
	2.	a.	The member had no ineffective service in the first period. The period remains 427 calendar days.
		b.	The member had 5 days of ineffective service in January 2008. 304 less the 5 days of ineffective service = 299 days
	3.	a. 427 divided by 731 = 0.58413 b. 299 divided by 731 = 0.40903
	4.	The table in subclause 3.5.96.1 shows the following. a. A Leading Seaman CIS has a completion bonus rate of $10,000. b. A Petty Officer CIS has a completion bonus rate of $4,000.
	5.	a. 0.58413 multiplied by $10,000 = $5,841.30 b. 0.40903 multiplied by $4,000 = $1,636.11
	6.	$5,841.31 plus $1,636.11 = $7,477.41
	7.	The member may be paid $7,477.41.

3.5.101 Administration of payment

1.	A member may nominate payment details for the completion bonus, subject to these conditions. See: Parts C and D of Annex 3.5.M
	a.	The form must be completed before the day the completion bonus is due.
	b.	The nomination must be on the form at Annex 3.5.M.
2.	The obligation payment and completion bonus may only be paid into the member's normal pay account, if either of the following circumstances applies to the member.
	a.	The member does not nominate payment details in the form at Annex 3.5.M.
	b.	The member first applies under this Division after the date on which the completion bonus would have been payable to the member, had they applied before that time.

PACMAN AL4 (February 2011) Chapter 3 – Part 5 Division 12 – 9