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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.
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.