Division 2: Additional retention bonus for other rank members

3.5.15   Purpose
3.5.16   Definitions
3.5.17   Member who is eligible under this Division
3.5.18   Additional retention bonus amount
3.5.19   Repayment of the bonus

3.5.15   Purpose

 

The purpose of this Division is to provide a bonus payment for an other rank member who makes an undertaking for further service under a closed provision of the Military Superannuation and Benefits Scheme.

3.5.16   Definitions

 

In this Division, the saved MSBS Scheme means the Military Superannuation and Benefits Act 1991, including Part 8 of the Military Superannuation and Benefits Act 1991, as saved by item 4 of Schedule 4 of the Defence Legislation Amendment Act (No.1) 2005.

3.5.17   Member who is eligible under this Division

 

A bonus is payable to a member under this Division if they meet all these conditions.

 

a.

The member becomes eligible for payment of a retention benefit under section 35 of the saved MSBS Scheme on a day that is on or between the following dates.

 

i.

5 October 2006.

 

ii.

5 October 2008.

 

b.

The member is entitled to a payment for qualification and skill under any of the following allowances on the day that the retention benefit became payable.

 

i.

DFRT Determination No.4 of 2006, Flying and flight duties allowance.

 

ii.

DFRT Determination No.11 of 2002, Special Action Forces allowance.

 

iii.

DFRT Determination No.19 of 2002, Specialist Operations allowance.

 

iv.

DFRT Determination No.9 of 1995, Submarine Service allowance.

 

c.

The member applies for payment using the form at Annex 3.5.AB.

See: Annex 3.5.AB, Additional retention bonus for other rank members

 

d.

On the day the retention benefit became payable to the member under section 35 of the saved MSBS Scheme, the member was not an officer or Warrant Officer Class 1.

 

3.5.18   Additional retention bonus amount

1.

The member is to be paid an amount equal to the total annual amount that could be paid using the rate described in subclause 2.

2.

The annual rate of additional retention bonus is the annual rate of allowance for qualification and skill under an allowance listed in paragraph 3.5.17.b. that applies to the member on the day that a retention benefit becomes payable to the member under the saved MSBS Scheme.

Note: This day is also called the "benefit computation day" under the saved MSBS Scheme.

3.

If the member's period of prospective service under the saved MSBS Scheme is less than five years, then the member is to be paid a pro rata amount of the bonus for the portion of the five years served.

4.

If more than one rate of bonus could apply to the member under subclause 2, the bonus is to be worked out using whichever of the rates is higher.

3.5.19   Repayment of the bonus

1.

The member must repay an amount of additional retention bonus to the Commonwealth if both the following circumstances apply to the member.

 

a.

The member fails to complete their undertaking for further service under the saved MSBS Scheme.

 

b.

The member becomes liable to repay any of the retention benefit under the saved MSBS Scheme.

2.

The amount of additional retention bonus that must be repaid under subclause 1 is the amount worked out using the following steps.

 

Step

Action

1.

Find the total number of days in the member's undertaking for further service under the saved MSBS Scheme.

2.

Divide the total amount of bonus by the number worked out under step 1.

3.

Work out the number of days in this period.

a. The period starts on the day the member became liable to repay their retention benefit under the saved MSBS Scheme.

b. The period ends on the date to which the member agreed to serve, under the saved MSBS Scheme.

4.

Multiply the amount worked out under step 2 by the number of days in step 3.

5.

The outcome from step 4 is the amount the member must repay to the Commonwealth.

 

PACMAN                                                                  AL15 (October 2006)                              Chapter 3 – Part 5 Division 2 – 2