Salary is pro-rated. Salary is paid for the days a member attends for duty under their pattern of service.
The non-working days in a member's pattern of service still constitutes eligible service for the purposes of salary increments.
Flexible service does not affect the benefits provided under DFRDB.
Employer and member contributions for ADF Super are based on a member’s ordinary time earnings (ie what is earned each pay period). When ordinary time earnings are reduced under flexible service, there will be a commensurate reduction in the employer and member contribution.
Flexible service does not affect the benefits provided under MSBS at this time. There are proposed changes to MSBS which are expected to apply in a few years. Until these proposed changes take effect, members will continue to pay contributions based on their full-time salary; with the employer contribution also based on their full-time salary. The member still has the option to vary their rate of contribution between 5 per cent and 10 per cent of their fortnightly salary.
The proposed changes to MSBS would see the member and employer contributions based on the actual fortnightly salary paid under the member's flexible service arrangement. This change to contributions is consistent with the superannuation arrangements in ADF Super and across the general community.
The bulk of MSBS benefit is the employer benefit. The employer benefit is calculated by applying a multiple to the members Final Average Salary (FAS). The multiples are 18%, 23%, 28%. These equate to the following periods of service: up to 7 years, 8 to 20 years, over 21 years. The FAS is the average full-time salary over the members final 3 years of service. Importantly, FAS for SERCAT 6 members will continue to be calculated on their full-time salary and is not under consideration for change. The proposed change will adjust the employer benefit in proportion to the hours worked under flexible service.
These explanations only outline the situation. Members should seek Subject matter expert advice from superannuation schemes prior to undertaking SERCAT 6.
Members Service Allowance is pro-rated.
Salary, allowances and benefits under s58H of the Defence ACT 1903
Salary related allowances are pro-rated. These allowances are paid for the days in the member's pattern of service.
Housing and Accomodation
Eligibility to Defence provided housing or accommodation assistance is unaffected by a SERCAT 6 arrangement.
Housing contributions will increase by 50 per cent, if the pattern of service less than 130 working days in a year, or there are non-working periods exceeding 28 continuous days.
Members will remain eligible to Home Purchase and Sale expenses and the Defence Home Ownership Assistance Scheme.
Health and Medical
Members continue to access full health and medical entitlements. If hospitalised, SERCAT 6 members are returned to duty and full-time rate of pay, for the period of hospitalisation and any following period of medical absence related to the hospitalisation. Members remain SERCAT 6 during this period.
Members accrue recreation leave and additional recreation leave on a pro-rated basis iaw their pattern of service. Recreation leave credits are not debited on nonworking days. (Note: Non-working days are the days not in the pattern of service).
Allowances and benefits under s58B of the Defence ACT 1903 (eg remote location allowance, higher duties allowance) and reimbursements
Some non-salary related allowances are pro-rated. These allowances are pro-rated for the days in the member's pattern of service. Allowances that are paid on occurrence or as reimbursements for costs incurred (eg relocation and travel-related costs) are not pro-rated.
Completion and Retention bonuses
Eligible for completion and retention bonuses. Effective service is calculated based only on the days in the member's pattern of service.
MSBS Retention Benefit
The accrual of 15 years of continuous effective service for eligibility to the MSBS retention benefit applies to both SERCAT 6 and SERCAT 7 members. Service under a flexible service arrangement is considered continuous effective service. However, any gap, in member contributions to MSBS, which exceeds 21 consecutive days, is treated as a break in continuous effective service for eligibility to the retention benefit.
MWD(U) will be required to pay contributions for food, accommodation and utilities on their non-working days. Reunion travel, separation allowance and the payment of food allowance will be pro-rated.