Defence Determination 2011/24, Senior Officer Retention Bonus and Senior Officer Transitional

Defence Determination 2011/24, Senior officer retention bonus and senior officer transitional bonus

I, PETER JOHN REDSTON, Acting Director General Personnel Policy and Employment Conditions, make this Determination under section 58B of the Defence Act 1903.
Dated 17 May 2011
P J REDSTON
Acting Director General
Personnel Policy and Employment Conditions
People Strategies and Policy Group

PAGE INTENTIONALLY LEFT BLANK

1 Citation

1. / This Determination is Defence Determination 2011/24, Senior officer retention bonus and senior officer transitional bonus.
2. / This Determination may also be cited as Defence Determination 2011/24.

2 Commencement

This Determination commences on the day after it is gazetted.

3 Amendment

Defence Determination 2005/15, Conditions of Service, as amended,1 is amended as set out in this Determination.

4 Clause 3.5.2 (Contents)

insert at the end
Division 36 / Senior officer retention bonus
Division 37 / Senior officer transitional bonus

5 Subclause 3.5.22.3 (How the offer is accepted)

omit
Annex 3.5.ZL
insert
Annex 3.5.AB

6 Chapter 3 Part 5 Division 35 (Air Force – Military instructor on Reserve service completion bonus scheme)

insert at the end
the Divisions set out inAttachment A

7 Annex 3.5.ZK (Air Force – Military instructor on Reserve service completion bonus scheme)

insert at the end
the Annex set out in Attachment B
NOTE
1. / Defence Determination 2005/15, as amended to date. For previous amendments see Note to Defence Determination 2011/1 and Defence Determinations 2011/2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 23.

Attachment A

Division 36: Senior officer retention bonus

3.5.347 Purpose

This Division provides a bonus that ensures senior officers are retained in individual positions critical to their Service's capability.

3.5.348

Some concepts used in this Division

1. / An agreed period of service is the period of the member's posting in the position for which the bonus is offered.
2. / A current capability shortage is critical when both the following conditions are met.
a. / A position requirement cannot be met with fit, trained and available personnel.
b. / Failure to meet the position requirement impacts negatively on delivery of Service capability.

3.5.349

Member eligible for a bonus

1. / The CDF may decide a retention bonus is to be offered under this Division to a member holding either of the following ranks.
a. / Major General.
b. / Brigadier.
2. / The member may be on continuous full-time service, or on Reserve service.

3.5.350

Member who is not eligible

A member in any of the following circumstances is not eligible to be offered a bonus under this Division.
a. / The member is not on paid service.
Example: A member on leave without pay.
b. / The member is discharging a return of service obligation for the purpose of the Defence Personnel Regulations 2002.
c. / The member is discharging an undertaking for service for the purpose of another bonus payment under this Part.
d. / The member has been given a notice of termination.

3.5.351

Offer of a bonus

1. / The amount of the bonus is to be determined by the CDF, having regard to clause3.5.352, up to a maximum of $30,000 for the period of the member's posting. The amount must be notified to the member as part of the offer.
2. / After the CDF has made the decisions under subclause 1, the offer may be made by whichever of the following positions is relevant to the member.
a. / Director Navy Senior Officer Management.
b. / Director General Personnel – Army.
c. / Director General Personnel – Air Force.
See:Annex 3.5.ZL Part A, Senior officer retention bonus form

3.5.352

Factors that are considered before a bonus is offered

Before deciding that a member is to be offered a bonus, the CDF must consider the following matters.
a. / Any evidence that failure to retain the member in the position will result in a current capability shortage that is critical.
b. / Whether the position that the member fills is essential to the delivery of the ADF's capability.
c. / Whether the member holds qualifications and skills that are essential to the delivery of Service capability.
d. / Any market forces that are contributing to the shortage.
e. / Any evidence of productivity improvementlinked to the payment of the bonus.
f. / Any time the member has spent in their current posting that would have been assessed as ineffective service had the rules in subclause 3.5.353.3 applied.
See: Subclause 3.5.353.3, Effective service for the purpose of the bonus
g. / Any other relevant matter.

3.5.353

Effective service for the purpose of the bonus

1. / The member's agreed period of service must be served as effective service.
2. / For the purpose of this Division, effective service means service that meets both these conditions.
a. / It is paid.
Exception: Unpaid leave of less than 21 calendar days.
b. / It is counted as a period of effective service under subclause 3.
3. / 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 paid component counts as effective service.
2. / Leave at full pay.
Examples: Recreation leave, full pay long service leave. / The whole period of this leave counts as effective service.
3. / Unpaid leave for less than 21 calendar days.
Examples: Leave without pay, maternity leave without pay
4. / Leave at half pay.
Example: Long service leave at half pay. / Half the period of the leave counts as effective service.
5. / A period when the member is discharging an undertaking for service for the purpose of another bonus payment under this Division. / The period counts as effective service only toward the earlier undertaking.
6. / Unpaid leave for 21 calendar days or more.
Examples: Leave without pay, maternity leave without pay / The period for which the member is in this situation does not count as effective service.
7. / Absence without leave.
8. / Imprisonment, detention or suspension from duty without pay.
4. / A member who has had ineffective service may have to make a repayment.
See: Clause 3.5.357, Partial repayment

3.5.354

How the offer is accepted

1. / An eligible member may accept a bonus under this Division any time after they receive an offer, until the latest of the following dates.
a. / Twenty-eight days after the day the offer is made.
b. / If the member was deployed when the offer under paragraph a. was made — the day 28 days after the day the member returns to Australia after a deployment.
c. / A longer period that any of the following decides is reasonable, having regard to the member's circumstances.
i. / Director Navy Senior Officer Management.
ii. / Director General Personnel – Army.
iii. / Director General Personnel – Air Force.
2. / An acceptance made under this subclause must be on the acceptance form at Part B to Annex3.5.ZL.
See:Annex 3.5.ZL, Senior officer retention bonus form
3. / The acceptance must include an undertaking to serve for the period of the posting in the position for which the bonus was offered (this is called the agreed period of service), using the form at Annex 3.5.ZL.

3.5.355

Payment of the bonus

A retention bonus becomes payable to an eligible member on receipt of the member's completed acceptance form at Part B to Annex 3.5.ZL.
See:Annex 3.5.ZL, Senior officer retention bonus form

3.5.356

Member leaves scheme

1. / The member is not required to repay the bonus if both of the following apply.
a. / The member fails to complete their agreed period of service under this Division.
b. / The CDF determines that the member's reason for ceasing to serve is beyond the member's control.
Examples: The member is terminated because of medical unfitness, or dies.
2. / The member is not required to repay the bonus if they complete their agreed period of service but not in the agreed position or specialisationwhen any of the following circumstances apply.
a. / The member transfers to another position or specialisation due to a restructure.
b. / The member's Service initiates the member's transfer to another position or specialisation.
c. / The member is promoted and so must leave the agreed position or specialisation.
Exception: A member who is given a new senior officer retention bonus may have to make a partial repayment.
See:Clause 3.5.357,Partial repayment.
3. / A member will be required to repay the full amount of a retention bonus if they fail to complete their agreed period of service for any of the following reasons.
a. / The member voluntarily leaves the agreed position or specialisation for which the bonus was offered.
b. / The member voluntarily transfers out of the Service.
c. / The member voluntarily applies to terminate service in the Permanent Force.
d. / The member's service is terminated for performance or disciplinary reasons.

3.5.357

Partial repayment

1. / A member will have to make a partial repayment of the bonus in either of the following situations.
a. / The member meets both of the following conditions.
i. / The member has completed the period of the posting for which the bonus was paid.
ii. / The member has had ineffective service.
b. / The member has transferred into another position for which a new senior officer retention bonus is to be offered.
2. / The amount of the bonus to be repayment is calculated in accordance with the following table.
Step / Action
1. / Work out the number of days between the following dates.
a. / The later of the following dates.
i. / The day the member started serving in the posting for which the bonus is paid.
ii. / 19 May 2011.
b. / The day the member's posting in the position for which the bonus was paid was due to end.
For Reserve service, only count the days the member was to serve.
2. / Work out the number of days the member did not serve in the period described in Step 1. This could be a combination of ineffective service and days after the member left the position.
3. / Divide the outcome of Step 2 by the outcome of Step 1.
4. / Multiply the outcome of Step 3 by the amount of the bonus paid to the member under clause 3.5.351.
5. / The member must repay the outcome of Step 4.
Example: A member's posting starts on 1 July 2011. It is due to end on 30 June 2012. The member is offered a $10,000 bonus. The member takes 30 days of ineffective service in the period. The member's repayment is calculated as follows.
Step / Action
1. / There are 365 days in the period from 1 July 2011 to 30 June 2012.
2. / The member had 30 days of ineffective service.
3. / 30 divided by 365 = 0.082192
4. / 0.082192 multiplied by $10,000 = $821.92
5. / The member must repay $821.92.

3.5.358

Administration of payment

A member may nominate payment details for the 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.ZL.
See:Parts C and D ofAnnex 3.5.ZL, Senior officer retention bonus form

Division 37: Senior officer transitionalbonus

3.5.359

Purpose

The senior officer transitional bonus provides members in prescribed positions with a payment. The payment recognises remuneration anomalies associated with those positions.

3.5.360

Payment

1. / A member described in the following table is to be paid an amount in accordance with the table.
Item / A member who was posted to... / in the... / on... / is to be paid...
1. / Deputy Commander Joint Task Force 633 / Army / 17 January 2011 / $1,392.95.
2. / Director GeneralMilitary Strategy / Army / 3 November 2008 / $1,392.95.
3. / Director GeneralLogistics Assurance / Army / 17 January 2011 / $5,187.33.
4. / ADF Liaison to United States Joint Chiefs of Staff / Army / 17 January 2011 / $394.25.
5. / CommandantRoyalMilitaryCollege / Army / 17 January 2011 / $1,773.23.
6. / Commander 17 Combat Services Support Brigade / Army / 17 January 2011 / $9,355.91.
7. / Commander Land Combat Readiness Centre / Army / 17 January 2011 / $9,356.72.
8. / Commander Headquarters 6 Brigade / Army / 1 January 2010 / $394.09.
9. / Special Operations Commander Australia / Army / 1 December 2010 / $8,787.28.
10. / Head People Capability / Army / 1 November 2008 / $346.89.
11. / in a pool position in Headquarters 1 Division while seconded to the Queensland Government / Army / 24 January 2011 / $1,117.00.
12. / Deputy Chief of Army / Army / 1 December 2008 / $346.89.
13. / Director Defence Intelligence Organisation / Army / 19 January 2009 / $346.73.
14. / Chief of Staff – Army Headquarters / Army / 17 January 2011 / $8,364.82.
15. / Commander Election Task Force International Security Assistance Force –Afghanistan / Army / 17 January 2011 / $296.78.
16. / Commander Joint Task Force 633 / Army / 17 January 2011 / $417.25.
17. / Deputy Inspector General ADF / Navy / 27 January 2011 / $654.00.
18. / Director General Navy People / Navy / 17 January 2011 / $7,651.00.
19. / Head Navy People and Reputation / Navy / 13 December 2010 / $3,299.00.
20. / Deputy Chief of Navy / Navy / 21 February 2011 / $855.00.
21. / Director General Information Policy and Plans / Navy / 17 January 2011 / $888.00.
22. / Director General Nature of Service Review / Navy / 10 January 2011 / $1,322.00.
23. / Commodore Support / Navy / 10 January 2011 / $7,058.00.
24. / a pool position on the Staff of the Chief of Navy, while studying at the Queensland University of Technology / Navy / 19 January 2011 / $1,142.00.
Item / A member who was posted to... / in the... / on... / is to be paid...
25. / Deputy Director Coalition Co-ordination Centre / Navy / 10 January 2011 / $1,102.00.
26. / Head Military Strategic Commitment / Air Force / 6 December 2010 / $2,816.00.
27. / Director General Materiel Information Systems / Air Force / 19 October 2010 / $1,672.00.
28. / Director General Personnel Air Force / Air Force / 22November 2010 / $10,208.00.
29. / Commander Northern Command / Air Force / 17 January 2011 / $1,717.00.

Attachment B

Annex 3.5.ZL: Senior officer retention bonus form

This form is in four parts.

Part A – provides information about the offer and the bonus scheme, and is for you to keep.

Part B – your formal acceptance of the offer and your agreement to serve until the end of the posting for which the bonus is paid.

Part C – your election about how the bonus is paid.

Part D – additional payment information if you choose to pay the money into a superannuation fund.

Part A: Offer and information about the retention bonus scheme

This Part provides information about the retention bonus you have been offered, and is for you to keep.

If you fill in and sign the acceptance form, you are accepting an offer made to you under the retention bonus scheme authorised under Chapter3 Part 5 Division 36 of Defence Determination 2005/15, Conditions of Service, made under section 58B of the Defence Act 1903 ('the Determination').

Offer

The offer made is as follows:

...... [member's name] is hereby offered a bonus by Director Navy Senior Officer Management/Director General Personnel – Army/Director General Personnel – Air Force[delete whichever is irrelevant].

The bonus offered is an amount of $...... which has been approved bythe CDF.

If the offer is accepted,you must serve for the period of your posting (the 'agreed period of service') in the following position:

......

Signed by:

Name:...... Rank:...... Date:......

Director Navy Senior Officer Management/Director General Personnel – Army/Director General Personnel – Air Force [delete whichever is irrelevant].

Information about the retention bonus scheme

I understand that my acceptance of this retention bonus is subject to the following terms and conditions.

1. / I am posted to a position for which I have been offered a bonus under this Division.
2. / On joining the scheme, I will be paid the amount of retention bonus that was offered to me.
3. / If I accept the offer of a retention bonus under this Division, I must serve for the period of the posting in the position specified in the offer. This period is called my 'agreed period of service' for which the bonus was offered to me.
4. / If I leave the position for which the bonus was offered to me by my Service for a reason within my control, I will have to repay the full amount of the bonus.
5. / I may not be asked to repay part of the bonus if I do not complete the agreed period of service for a reason beyond my control. Examples are if I am discharged for medical reasons or die.
6. / If I take ineffective service during the period of my posting, or transfer to a position for which I am paid another senior officer retention bonus, I will have to repay a proportion of the bonus.
7. / Effective service for the retention bonus is paid service. Leave or other events may not be effective service and may reduce my amount of retention bonus. The table in subclause 3.5.353.3 of the Determination shows what counts as effective service.
8. / I may elect to pay the scheme payments into a superannuation fund using the forms provided at Parts C and D.
9. / I am aware that Defence will treat the information in this acceptance form as my personal information covered by the Privacy Act 1988 and I consent to Defence using it in de-identified form for reporting and statistical purposes. I am aware that if I publish this information to others, I may make the protections provided to me by the Privacy Act ineffective.

Full details of the senior officer retention bonus scheme are contained in Chapter 3 Part 5 Division 36 of Defence Determination 2005/15, Conditions of Service.

This acceptance form, and the related parts of Defence Determination 2005/15, is the whole agreement between us about the nature of this scheme. It overrides any other prior understanding or agreement about the scheme. This would include, for instance, things I may have been told about the scheme or things I may have read elsewhere.

Part B: Acceptance of offer and undertaking to serve an agreed period for a retention bonus

I,...... / …………………………………… / …………………………………… / ……………………………………
(Rank) / (Last name) / (Given name)
……………………………………...... / …………………………………… / ,
(Service number) / (Employee ID)

accept the offer to join the retention bonus scheme.

The amount of the bonus offered to me is $......

I agree to serve for theperiod of the posting in the position for which the bonus is offered.

I acknowledge that the provisions of Chapter 3 Part 5 Division 36 of Defence Determination 2005/15, Conditions of Service ('the Determination'), have been brought to my notice.

Please tick the boxes that apply below.

I have read and understood Part A of this form. / Yes [ ] / No [ ]
I have sought independent legal advice in relation to this undertaking. / Yes [ ] / No [ ]
I have sought independent financial advice in relation to this undertaking. / Yes [ ] / No [ ]
I have completed the options for payment (see Parts C and D of this form.) / Yes [ ] / No [ ]
[ ] / I am not currently in receipt of any other retention or completion bonus.
Dated this / day of / 20
Signed / Printed name
Witness
(This person must be above the applicant in the chain of command)
Signed / Printed name and rank

…………………………… / …………………………… / …………………………… / ……………………………
(Rank) / (Last name) / (Given name) / (Employee ID)

verify that the member has met all requirements for payment of the retention bonus.

Approved
Administrator authorised for and on behalf of the member's Service

Part C: Payment details

…………………………… / …………………………… / …………………………… / ……………………………
(Rank) / (Last name) / (Given name) / (Employee ID)

This form must be submitted along with the acknowledgment and undertaking to serve form (Part B).