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Specialist
operations and special action forces allowances will be
now superannuable following the Nunn review.
Photo by Cpl Darren Hilder, 1JPAU(P)
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Boost
for benefits from Nunn review
Major
changes to ADF remuneration
ELIGIBLE
ADF members are in line for significant benefits following a Federal
Government decision on the recommendations of the Nunn Review.
The major changes include:
- The
Qualification and Skills elements of flying, specialist operations,
special action forces and submarine service allowances will be
made superannuable.
- Up
to 24 weeks of maternity leave will be able to be taken at half
pay.
- A
new flexible salary structure for ADF officers is to be adopted.
- The
MSBS Retention Bonus will be discontinued for new ADF members,
with a clause to protect the entitlement for all existing members.
- There
will be no change in the role or functions of the Defence Force
Remuneration Tribunal (DFRT).
The
Nunn Review was an external review of ADF remuneration conducted
in 2001 that resulted in a range of recommendations covering the
pay-fixing arrangements for the ADF, Reserve remuneration, changes
to salary and allowance structures and conditions of service, including
housing, leave and superannuation.
The
Government's decision means that 100 per cent of the Qualification
and Skill (Q and S) element of the major environmental allowances
will be counted as salary for the purposes of superannuation once
necessary regulatory changes have been completed.
Those
allowances are flying, special action forces, specialist operations,
including commandos, TAG, clearance divers, the IRR and submarine
service allowance.
The
decision to only superannuate the Q and S elements of these allowances
is consistent with the broad industrial principle that payment for
enhanced work value or skills over extended periods should be considered
to be part of salary (and therefore relevant for superannuation
purposes).
Making
the Q and S elements of allowances superannuable will begin when
the applicable regulations have been gazetted, and the Defpay computer
system has been programmed to cater for the changes.
Members
will be informed of a date of effect as soon as it is known.
There
will be no retrospectivity and anyone in receipt of these allowances
who leaves the ADF before the changes take effect will not be eligible
for the superannuation benefit arising from the process.
To
address specific shortages of air traffic control officers and aerospace
engineers, Minister for Defence Robert Hill recently established
two retention allowances.
These
allowances are payable in recognition of work force shortage and
the need to enhance attraction and retention of members. They address
key departure points and attraction deficits and will not be superannuable.
Many
of the recommendations in the Nunn Review were incorporated into
the ADF Remuneration Reform Project being progressed within Defence.
The
Government's decision means that work on the development of a flexible
officer pay structure will continue. This part of the project is
to reform the structure and is not a pay case.
After
development has begun, communication will occur on the model and
its possible application to ADF officers. The Directorate of Military
Salary and Allowance (Policy) web site will be updated as each aspect
is agreed.
The
MSBS Retention Benefit will cease for future ADF members.
The
MSBS Retention Benefit provides one year's salary as a (taxable)
bonus to those MSBS members of the rank of sergeant or major equivalent,
or specified category, who reach 15 years of continuous service
and agree to undertake a further five years' service. Allowances
are not included as part of salary for the purposes of calculating
the bonus.
As
a retention benefit, the MSBS bonus has proven ineffective and will
be discontinued. The benefit will be protected for all currently
serving MSBS personnel to ensure none are disadvantaged.
Implementation
will require changes to the MSBS Act, which may take up to two years
to achieve, and all members who are in MSBS up to the date of legislative
change will be protected, and have unfettered access to the bonus.
Only
members who join after the date of legislative change will have
the current entitlement removed.
The
decision to allow ADF members to take maternity leave at half pay
will allow members to chose between taking 12 weeks on full pay
or up to 24 weeks on half pay or a mixture of both. This provision
has been enacted and was effective from March 1.
The
Nunn Review made a number of recommendations in relation to rationalising
the number of types of leave and leave administration. The Government
agreed to a further internal review of ADF leave, which is under
way.
The
review aims to look at how to reduce the current complexity in the
taking and recording of leave, to reduce overheads and make the
system simpler to operate.
It
will examine options to rationalise the current leave types through
amalgamation, and examine environmental, war service and compassionate
and carers' leave.
The
DFRT will be maintained as a separate statutory Tribunal responsible
for determining specified elements of ADF remuneration.
The
role and the governance of the tribunal will remain as it is, and
the office of the Defence Force Advocate will remain.
Both
factors recognise the significant difference between the ADF and
the wider community in the work that we do and the industrial relations
system under which we operate.
More
information about the effect of the Government's decision on the
Nunn Review recommendations will be available at http://intranet.defence.gov.au/pac/
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