PACMAN Chapter 3 Part 5 Division 27: Medical Officer retention benefit scheme

Division 27: Medical Officer retention benefit scheme

3.5.252  Purpose
3.5.253  Payments under this Division
3.5.254  Definitions
3.5.255  Members this Division applies to
3.5.256  Members this Division does not apply to
3.5.257   Acceptance
3.5.258  Attraction payment
3.5.259  Completion bonus
3.5.260  Extension of the agreed period of service
3.5.261   Bonus not payable when member leaves the scheme
3.5.262   Pro rata payment of bonus when member leaves scheme
3.5.263   Pro rata calculation of the bonus amount
3.5.264  Administration of payment

3.5.252 Purpose

	This Division provides an attraction payment and a completion bonus for some medical officers in the Permanent Forces. The payment is designed to encourage members to continue to serve in the ADF.
	Note: Action may be taken to amend or revoke a retention benefit if the policy reasons for making it cease to apply.

3.5.253 Payments under this Division

This Division provides for two different types of payment.

An attraction payment, paid on joining the scheme.

See: Clause 3.5.258, Attraction payment

A completion bonus, paid to members who remain in the scheme for the number of years the member agrees to serve. In some circumstances pro rata payment of the completion bonus may be made.

See: Clause 3.5.259, Completion bonus

3.5.254 Definitions

1.	For the purpose of this Division, an *agreed period of service* is a period of either two or three years which the member agrees to serve in a specified position, employment category or primary qualification in return for a payment under this Division.
2.	For the purpose of this Division, *specialist career structure* means the competency-based career structure under Part B, Division 3 of DFRT Determination No. 15 of 2008, Salaries.
3.	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 subclause 4.

4.	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.	The whole period does not count as effective service.
10.	Return of service obligations A period when the member is discharging a return of service obligation associated with the following. a. An overseas posting. b. Professional or trade training that is directly relevant to the member's occupation, and not described in item 11.a of this table.	Both of these periods are effective service. i. The period of the overseas posting or the training. ii. The period of the return of service obligation.
11.	Return of service obligations A period when the member is discharging a return of service obligation associated with the following. a. A period of initial category training. b. Any other return of service obligation not described in item 10 or 11 of this table. Examples: A return of service obligation associated with a transfer between Services. A return of service obligation associated with recruitment to another country.	The whole period does not count as effective service.

3.5.255 Members this Division applies to

1.	A member who meets all the following conditions is eligible to apply under this Division.
	a.	The member is a medical officer in the *specialist career structure*.
	b.	They are member of the Permanent Forces.
	c.	The member holds one of the ranks listed in the following table.

Item	If the member is in the ...	the following ranks are eligible ...
1.	Army	a. Captain b. Major
2.	Air Force	a. Flight Lieutenant b. Squadron Leader
3.	Navy	a. Lieutenant b. Lieutenant Commander

	d.	The member is at one of the following medical officer specialist career structure competency levels.
		i.	Level 2.
		ii.	Level 3.
	e.	The member applies to join the scheme and agrees to provide either two or three years of service using the form at Annex 3.5.ZB. This is called the *agreed period of service*.
		Exception: A member may not specify a period that will end after 30 June 2013.
		See: Annex 3.5.ZB, Medical Officer retention benefit scheme
2.	This Division ceases to apply to all members on 30 June 2013.

3.5.256 Members this Division does not apply to

	A member in any of the following circumstances is not eligible to apply under this Division.
	a.	The member is serving an initial minimum period of service (IMPS).
	b.	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.
	c.	The member is no longer liable to serve as a medical officer in accordance with the relevant definition in clause B.3.2 of DFRT Determination No. 15 of 2008, Salaries.
	d.	The member is serving a return of service obligation (ROSO) associated with their initial training.
	e.	The member will reach compulsory retirement age before the end of the period of service they must undertake in return for the bonus they have been offered, and the member has not applied to have their retirement date extended to cover that period of service.
	f.	The member's fixed period of service will end before the end of the period of service they must undertake in return for the bonus they have been offered, and the member has not applied to have their fixed period of service extended to cover the period of service required for the bonus.
	g.	The member is currently serving a period of service for the purpose of Division 29, Navy – Medical Officer recruitment bonus scheme

3.5.257 Acceptance

1.	The CDF may accept an eligible member's application.
	a.	The acceptance must be in writing.
	b.	The acceptance must state the number of years in the member's agreed period of service.
2.	A member who joins the scheme is taken to have undertaken to serve from the relevant date in the following table.

Item

If ...

then the member's undertaking to serve starts on...

the member meets both the following

a. They would have been eligible to join the scheme on a day between 1 July 2007 and 9 October 2007 if it had existed.

b. They applied to join the scheme before 6 November 2007.

the first day on or after 1 July 2007 that the member met the conditions under paragraphs 3.5.255.1.a to 3.5.255.1.d.

See: Clause 3.5.255, Member this Division applies to

item 1 does not apply to the member

the day the completed form at Annex 3.5.ZB is provided to Defence.

See: Annex 3.5.ZB, Medical Officer retention benefit scheme

3.	If the member is in another scheme, they may be paid a pro rata amount for service in that scheme for the period ending on the day they are taken to commence in this scheme.

Persons who can make the decision under subclause 3.5.257.1 on behalf of the CDF:

Director Navy People Career Management Agency

Director Officer Career Management – Army

Director of Personnel – Air Force

3.5.258 Attraction payment

1.	A member whose application for the medical officer retention benefit scheme is accepted is to be paid an attraction payment.
2.	The amount of attraction payment is determined in the following table.

Item	If the member is accepted into the scheme for...	the member is to be paid...
1.	two years	$50,000.
2.	three years	$80,000.

A member who does not serve in the medical officer specialist career structure for the agreed period of service after the commencement of their undertaking to serve under this Division must repay the full amount of the attraction payment made to the member.

Exception: A member who leaves for a reason listed in clause 3.5.262 is not required to repay the attraction payment.

See: Clause 3.5.263, Pro rata calculation of the bonus amount

A member who commences to serve an undertaking for further service (UFFS) 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 before the member completes their period of effective service under this Division must repay an amount of the attraction payment proportional to the part of the agreed period of service that they have not served on the day they commence the UFFS.

3.5.259 Completion bonus

1.	A member who meets both the following conditions is entitled to a completion bonus.
	a.	The member has completed their agreed period of service under this Division.
	b.	The period is all effective service.
2.	The amount of the completion bonus is determined in the following table.

Item	If the member completes ...	the member is to be paid ...
1.	two years effective service	$25,000.
2.	three years effective service	$40,000.

3.	A member who meets both the following conditions is entitled to a pro rata payment of the completion bonus, calculated using the method in clause 3.5.263. See: Clause 3.5.263, Pro rata calculation of the bonus amount
	a.	The member has completed their agreed period of service under this Division.
	b.	The service period includes ineffective service.
	Related Information: Clause 3.5.260, Extension of the period for payment, allows a member with ineffective service to elect to serve for a longer period.

3.5.260 Extension of the agreed period of service

1.	A member may elect to serve for longer than their agreed period of service, if the period includes ineffective service.
2.	An election under subclause 1 must have these features.
	a.	The election must be on the form at Part E of Annex 3.5.ZB. See: Annex 3.5.ZB, Medical Officer retention benefit scheme
	b.	The election may only be for a period ending on the day the member has served the number of years of effective service equivalent to the member's original agreed period of service under this Division. Exception: A member may not elect to serve under this Division beyond 30 June 2013. Example: A member elects to serve for three years. In that three-year period the member has 63 days that were not effective service. The member elects to extend his service period by 63 days, to make a total of three years of effective service.
3.	A member who makes an election under subclause 1, and who completes their original agreed period of service as effective service, is entitled to the full amount completion bonus instead of the pro rata bonus amount. Example: A member agreed to serve for three years. In that period the member has 50 days of leave without pay. The member elects to serve for longer, and works for an extra 50 days. The member is entitled to a $40,000 completion bonus.
4.	A member who makes an election under subclause 1, and who cannot serve for long enough to complete their original agreed period of service as effective service, is entitled to a bonus calculated using the method in clause 3.5.263. See: Clause 3.5.263, Pro rata calculation of the completion bonus amount Example: A member agreed to serve for three years. In that period the member has 50 days of leave without pay. The member elects to serve for an extra 50 days, but can only work an additional 20 days before their fixed period of service ends. The member's bonus is calculated under clause 3.5.263.

3.5.261 Bonus not payable when member leaves the scheme

	A member who has applied to join the scheme under this Division ceases to be eligible for the scheme if they meet any of the following conditions before they complete the agreed period of service.
	a.	The member voluntarily leaves the medical officer employment category or primary qualification for which the bonus was offered.
	b.	The member voluntarily transfers to the Reserve Forces.
	c.	The member resigns from the Permanent Force.

3.5.262 Pro rata payment of bonus when member leaves scheme

	A member who has applied to join the scheme under this Division is eligible for a pro rata payment of the bonus under clause 3.5.259 if their service under this Division ceases for one of the following reasons.
	a.	The member dies.
	b.	The member applies to extend their period of service or enlistment but the extension is refused.
	c.	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
	d.	The member is made redundant or retrenched.
	e.	The bonus scheme ceases.
	f.	The member is promoted to a higher rank.
	g.	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.
	h.	The member is reduced in rank to a rank that is not eligible under this Division.
		Exception: The reduction is the result of disciplinary action or administrative action.

3.5.263 Pro rata calculation of the bonus amount

This table shows how to calculate a pro rata amount of completion bonus that a member is entitled to under this Division.

Exceptions: Subclauses 3.5.259.1 and 3.5.260.3 provide for a completion bonus to members who complete their agreed period of service under this Division.

Step	Action
1.	Work out the number of calendar days in this period. a. The period starts on the day the member is taken to start their undertaking to serve under this Division. b. The period ends on the day before the date the member meets conditions for pro rata payment of the completion bonus.
2.	Work out the number of days of ineffective service in the period in Step 1.
3.	Subtract the outcome of Step 2 from the outcome of Step 1.
4.	Divide the outcome of Step 3 by an amount determined for the relevant period of service.
	If the member's agreed period of service was for...	the calculation figure is...
	two years	a. If the member's service period did not include a 29 February, the figure is 730. b. If the member's service period included a 29 February, the figure is 731.
	three years	a. If the member's service period did not include a 29 February, the figure is 1095. b. If the member's service period included a 29 February, the figure is 1096.
5.	Multiply the outcome of Step 4 by the amount relevant to the agreed period of service.
	If the member's agreed period of service was for...	the calculation figure is...
	two years	$25,000
	three years	$40,000
6.	The member may be paid the outcome of Step 5.

Example: A member applies to join the scheme on 15 October 2007. The member joins the scheme for three years. On 1 December 2008 the member's service is terminated as the member is medically unfit. The member had 25 days of leave without pay in December 2007.

Step	Action
1.	There were 413 calendar days between 15 October 2007 and 30 November 2008.
2.	The 25 days the member was on leave without pay was ineffective service.
3.	413 – 25 = 388 calendar days
4.	For a three year agreed period of service, the figure is 1095. 388 divided by 1095 = 0.3543379
5.	0.3543379 multiplied by $40,000 = $14,173.51.
6.	The member may be paid $14,173.51.

3.5.264 Administration of payment

1.	A member may nominate payment details for the attraction payment and completion bonus, subject to these conditions.
	a.	The form must be completed before the day the payment is due.
	b.	The nomination must be on the form at Annex 3.5.ZB. See: Parts C and D of Annex 3.5.ZB, Medical Officer retention benefit scheme
2.	If a member does not nominate payment details in the form at Annex 3.5.ZB, the attraction payment and completion bonus may only be paid into the member's normal pay account.

PACMAN AL4 (February 2011) Chapter 3 – Part 5 Division 27 – 1