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6.7.4 Serving Part-time Reservists Injured During Full-Time Service and Whose Last Period of Full-Time Service was as a CFTS Reservist

This section applies to a person who is:

  • a part-time Reservist;
  • incapacitated for service or work;
  • sustained an injury while on full–time service; and
  • the person's last full-time service was as a CFTS Reservist.

The person has a choice to take as normal earnings either their full-time ADF earnings or their pre-CFTS earnings.  The person must inform the delegate of the choice in writing and once made, it cannot be changed for that period of incapacity.  A person may choose a different basis of normal earnings for further separate and discrete periods of incapacity.

Full-time ADF earnings are calculated in accordance with section 109:

f/t ADF rate of pay including pay-related allowances     +     remuneration amount

Pre-CFTS earnings are the sum of the Reservist's pre-CFTS pay for the week and Reserve pay for the week.

Where the person was working before beginning the last period of CFTS, pre-CFTS pay is defined as:

pre-CFTS civilian weekly hours worked     x     pre-CFTS civilian rate of pay     +     allowances including overtime

Overtime is only included when the person is working regular overtime.

The example period is normally the last 2-week period the person was engaged in work ending immediately before the last period of CFTS.  If the example period does not fairly represent the person's pay the delegate may determine a different 2-week period or a period of different length.

If not working, pre-CFTS pay is defined as nil.

Reserve pay for a person who was a part-time Reservist before beginning the last period of CFTS is defined as:

Reserve days     x     Reserve daily rate of pay plus pay-related allowances

where Defence have advised the date on which any allowances would cease being paid.

The example period is the 1-year period during which the person was a part-time Reservist immediately before the last period of CFTS, or such a period as the delegate determines is reasonable.

Actual earnings are calculated in accordance with section 115:

Reserve pay including pay-related allowances     +     actual civilian earnings

Where the actual civilian earnings are the greater of:

  • the amount the delegate determines the Reservist is able to earn from suitable work by reference to the deeming provisions in section 181; or
  • the amount the Reservist actually earns from civilian work (including allowances other than expense allowances).

Example:

A Reservist injures their right shoulder during a period of CFTS as a Sergeant on 16 November 2005.  They completed their CFTS in 2006.  The Reservist is now incapacitated for a 1-week period from 4 – 8 February 2008 while they undergo arthroscopic surgery.

The Reservist has the choice of NE being calculated as their full-time ADF rate of pay including the remuneration amount or their pre-CFTS civilian earnings plus their reserve earnings.

Choice 1.

If member chooses full-time ADF rate of pay including the remuneration amount, NE is:

F/T ADF rate of pay including pay-related allowances     +     remuneration amount

$1,114.75     +     $123.85     =     $1,238.60

Choice 2.

If member chooses pre-CFTS civilian earnings plus Reserve earnings then NE is:

pre-CFTS pay     +     Reserve pay

Pre-CFTS pay is the member's civilian earnings in the 2-week period prior to the period of CFTS service, indexed by the Wage Price Index.  Reserve pay is the average of his weekly Reserve earnings during the 12-months prior to the period of CFTS.

The members pre-CFTS pay is $786.50 per week and this is the civilian component of NE.

During the 12 months prior to the period of CFTS, the member completed 58 days of Reserve service.  This included a 14-day camp during which the member also received Field Allowance equivalent to $26.94 per day.  The daily rate of Reserve pay for a Sergeant is $110.69 per day.

According to the formula:

Reserve days     x     (Reserve daily rate of pay     +     pay-related allowances)

(58     x     $110.69)     +     (14     x     $26.94)     =

$6,420.02     +     $377.16     =     $6,797.18

This amount needs to multiplied by 6/313 to convert the annual amount to a weekly amount for NE purposes.

$6,797.18     x     6/313     =     $130.30 per week

NE is therefore:

$786.30     +     $130.30     =     $916.60

Accordingly the member chooses to have their NE based on the full-time ADF rate of pay plus the Remuneration amount.  The member receives incapacity payments of $1,238.60 for the week they are incapacitated for service and work.

Delegates should provide the member with full details of both choices, when advising the member of their options.