Features
Focus on bonuses

Edition 1164, April 19, 2007
 
Well positioned: Spr Steven Taylor, 1CER Plant Operator, at the controls of a skid-steer loader with 1RTF in southern Afghanistan. Spr Taylor and other Plant Operators are eligible for the Critical Employment Category Retention Bonus.
Photo by PO Damian Pawlenko
THE retention bonuses on offer to almost 5500 Army personnel have attracted much positive attention from soldiers, according to the Director Military Personnel Administration-Army Col Ash Gunder.

Col Gunder said more than several hundred soldiers had already accepted either the Army Expansion Rank Retention Bonus or the Critical Employment Category Rank Bonus.

He said feedback from troops who were deployed in Afghanistan was complimentary of the effort that DMPA-A staff went to ensure a streamlined process to facilitate payment as quickly as possible.

“We were told that they were all very happy with the speed of the turnaround from time of submission to time of receipt of the money,” he said.

“It is really good to hear that the effort taken by all in developing the implementation of these initiatives has borne fruit.

“In roughly six weeks Army has successfully embarked on a process of advising nearly 5500 personnel though their chain of command of potential entitlement to one or more of the R2 bonuses.”

Col Gunder said this required around 170 signals and emails being dispatched globally to personnel serving in embassies around the world, deployed on operations, in non-Army groups and those in Army units in Australia.

“We are not sitting back and hoping that things are going smoothly. Now is the period to test and adjust the process to ensure the most efficient and effective way of delivery, as this could be the model for other initiatives coming down the pike,” he said.

He advised soldiers who thought they were eligible for a retention bonus and had not yet been approached by their CO or unit to contact them to ascertain eligibility.

More detail on the retention bonuses can be found at the Stay Army website at http://intranet.defence.gov.au/armyweb/sites/STAYARMY/ or by emailing milpersadmin.army@defence.gov.au.

CRITICAL EMPLOYMENT CATEGORY RETENTION BONUS

What trades are eligible for this bonus? ECN 269 Operator Petroleum – all ranks.
ECN 270 Plant Operator – all ranks.
ECN 273 Operator Electronic Warfare – all ranks
ECN 377 Supervisor Civil – all ranks
Are the amounts taxable? Yes, and it is recommended that you seek independent financial advice before making a decision to accept or reject the offer.
What is the amount on offer? $25,000 paid after acceptance of the offer.
What is my return of service requirement under this bonus? You are required to serve until at least March 1, 2009. If you leave before then you may be required to repay all or part of the $25,000 at the pre-tax rate. Refer to Pacman Vol 1, Ch 3, Pt 5, Div 20 for specific detail.
What if I am already on an initial minimum period of service, MSBS undertaking for further service, or any other return of service obligation? You may still be eligible. refer to Pacman Vol 1, Ch 3, Pt 5, Div 20 for specific detail.
Can I take this bonus and the Army Expansion Rank Retention Bonus or Trade Transfer Bonus also? No, you are only able to choose from one of the three bonuses on offer.

ARMY EXPANSION RANK RETENTION BONUS ELIGIBILITY

Captains and majors
Corporals and sergeants

  • Must have worn your current rank in the ARA since before March 1, 2005; or
  • Must have been on CFTS and transferred to the ARA in your worn current rank since before March 1, 2005.
    Captains and majors
  • Must have worn your current rank in the ARA since before March 1, 2004; or
  • Must have been on CFTS and transferred to the ARA in your worn current rank before 1 March, 2004.

HOW THE PROCESS WORKS

  • Member provided Member Guide by unit/CO/OC or ACO.
  • Member considers offer and returns.
  • PMKeys updated by unit or DSG.
  • On acceptance of the offer, a copy is provided to DEFPAC for payment.
  • Member is paid in accordance with his/her instructions.
  • If the member rejects the offer, originals are sent to DOCM-A and SCMA.

DO

DON'T
Seek independent financial advice before accepting a retention offer due to taxation, family assistance, and / or child support implications.
 Accept a retention offer if you are currently on an IMPS or an Army Completion Bonus.
Consider carefully a retention offer if you currently are on a MSBS undertaking for further service.
 Accept more than one offer from the Army Expansion Rank Retention Bonus, Critical Employment Category Retention Bonus or the Trade Transfer Bonus.
Understand that accepting the Army Expansion Rank Retention Bonus does not prevent you from being promoted during the period of service obligation.
 Accept an offer for the Army Expansion Rank Retention Bonus if you have less than 12 months to serve unless you have applied for an extension.
Consider all non-cash aspects in your current remuneration package when comparing salary offers from non-Defence agencies. Accept an offer for the Critical Employment Category Retention Bonus if you have less than 24 months to serve unless you have applied for an extension.
Raise any questions regarding the retention bonuses through your chain of command.  

 

MYTHS, FURPHIES, FACTS AND FAQs

  • Eligibility for the Army Expansion Rank Retention (AERR) Bonus is based on substantive promotion – wrong. The minimum time is based on worn rank. It does not rely on temporary, provisional or substantive promotion.
  • The period of minimal experience in the rank can only include ARA service – not true. A period of CFTS just before transferring to the ARA can count towards the minimum period at the rank level.
  • If I take the initial retention bonus I have to complete the additional three years afterwards – furphy. If you accept the offer for the initial payment of $10,000 for a 12 month service obligation, you are under no obligation to serve the additional three years. If you remain in the Army for the additional three years you will be eligible for a further $30,000.
  • Eligibility for the Critical Employment Category Rank Bonus (CECR) is only for corporals or sergeants in the designated trade category – not so. Members of all ranks in a designated trade category are eligible.
  • I can have my bonus paid into my superannuation as a salary sacrifice – true. You may have your bonus payments paid as a salary sacrifice, but seek independent financial advice before accepting any retention bonus.
  • To be eligible for CECR I have to have been in the trade for at least 12 months – incorrect as there is no time qualification. Once you have been transferred to the employment category on completion of the employment category training you are eligible for the CECR bonus. The bonus is to have you remain in the employment category for at least two years