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6.8.1 Former Permanent Force members

Where a person was a Permanent Forces member immediately before last ceasing to be a member, normal earnings are worked out according to the formula:

 

f/t ADF pay including allowances     +     remuneration amount

 

ADF pay is the amount the person would receive were they still a member of the Permanent Forces and not incapacitated for service.  The allowance component is the amount of compensable allowances he or she would receive if still a member (and not incapacitated), as advised by Defence.

 

Example:

A Corporal infantry soldier was medically discharged on 2 September 2007.  Defence have advised (via the single access mechanism - SAM) that discharge rank and pay level was that of Corporal Pay Group 2, Increment level 2.  The former member was not in receipt of any pay-related allowances.  Accordingly salary at discharge was $1,028.12 per week.  Normal earnings are:

 

$1,028.12     +     $123.85     =     $1,151.97

 

The Commonwealth Superannuation Corporation have advised that the member was classified as a Class C on medical discharge.  As a former MSBS member the Commonwealth (employer) contribution is preserved until the person reaches their retirement (preservation) age.  Accordingly there is no superannuation to be deducted.

 

From 3 September 2007 the former member is eligible to receive incapacity payments on the basis of:

 

NE     -     AE

 

AE is zero as the person is undertaking a rehabilitation program.

 

Therefore entitlement to incapacity payments is:

 

$1.151.97 per week.