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
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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. |
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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. |
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A
bonus is payable to a member under this Division if they meet all these
conditions. |
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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. |
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i. |
5
October 2006. |
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ii. |
5
October 2008. |
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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. |
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i. |
DFRT
Determination No.4 of 2006, Flying and flight duties
allowance. |
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ii. |
DFRT
Determination No.11 of 2002, Special Action Forces
allowance. |
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iii. |
DFRT
Determination No.19 of 2002, Specialist Operations
allowance. |
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iv. |
DFRT
Determination No.9 of 1995, Submarine Service allowance. |
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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 |
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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. |
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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. |
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2. |
The
annual rate of additional retention bonus is the annual rate of allowance for
qualification and skill under an allowance listed in p Note: This day is also called the "benefit computation day" under
the saved MSBS Scheme. |
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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. |
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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. |
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1. |
The
member must repay an amount of additional retention bonus to the Commonwealth
if both the following circumstances apply to the member. |
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a. |
The
member fails to complete their undertaking for further service under the
saved MSBS Scheme. |
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b. |
The
member becomes liable to repay any of the retention benefit under the saved
MSBS Scheme. |
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2. |
The
amount of additional retention bonus that must be repaid under subclause 1 is
the amount worked out using the following steps. |
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Step |
Action |
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1. |
Find the total number of days in the member's undertaking for further
service under the saved MSBS Scheme. |
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2. |
Divide the total amount of bonus by the number worked out under step
1. |
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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. |
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4. |
Multiply the amount worked out under step 2 by the number of days in
step 3. |
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5. |
The outcome from step 4 is the amount the member must repay to the
Commonwealth. |