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6.8.2 Former CFTS Reservists
Where a person was a CFTS Reservist immediately before last ceasing to be a member of the Defence Force, normal earnings are either their 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.
ADF earnings are as defined in section 144:
f/t ADF pay including allowances + remuneration amount
Pre-CFTS earnings are defined as the sum of the person's pre-CFTS pay and Reserve pay for an example period.
Pre-CFTS pay is calculated according to the formula below. Hours and rates of pay are the average for the example period.
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. For example, if a person is a shift worker the example period should include the complete shift roster. Where there is a three shift roster (day, afternoon and night) the example period may be 6-weeks.
If not working, pre-CFTS pay is defined as nil.
Reserve pay is defined as:
Reserve days x Reserve daily rate of pay plus pay-related allowances
with an example period of the 1-year during which the person was a part-time Reservist immediately before the last period of CFTS, or such period as the delegate determines is reasonable. Reserve and allowance days are averages over the example period whereas pay-related allowances are those that were being paid immediately before the period of CFTS and pay is what the person would receive as a part-time Reservist if not incapacitated for service.
Normal weekly hours are defined as:
pre-CFTS hours + pre-CFTS overtime hours + ADF hours
where ADF hours are the average worked out over the Reserve example period and pre-CFTS hours are those used in calculating pre-CFTS pay.
The Reserve pay component will have the same tax exempt status as the Reserve pay.
A Reservist sustains a back injury during a period of CFTS as a Sergeant. The person was subsequently medically discharged due to the back injury on 16 November 2008 while still on a period of CFTS.
The former member has the choice of NE being calculated as full-time ADF rate of pay including the remuneration amount or, pre-CFTS civilian earnings plus Reserve earnings.
If the former 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
If the former member chooses pre-CFTS civilian earnings plus Reserve earnings then NE is:
pre-CFTS pay + Reserve pay
Pre-CFTS pay is the former member's civilian earnings in the 2-week period prior to the period of CFTS service, indexed according to the Wage Price Index. Reserve pay is the average of weekly Reserve earnings during the 12-months prior to the period of CFTS.
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 former member attended for 58 days of Reserve service. This included a 14-day camp during which the former member also received Field Allowance equivalent to $26.94 per day. The daily rate of Reserve pay is $119.14 per day plus $11.72 Reserve Allowance..
According to the formula:
Reserve days x Reserve daily rate of pay + pay-related allowances
(58 x $119.14 + $11.72) + (14 x $26.94) =
$7,589.88 + $377.16 = $7967.04
This amount needs to multiplied by 6/313 to convert the annual amount to a weekly amount for NE purposes.
$7967.04 x 6/313 = $152.72 per week
NE would therefore be:
$786.30 + $152.72 = $939.02
Accordingly the former member chooses to have their NE based on f/t ADF rate of pay plus the remuneration amount and they receive incapacity payments of $1,238.60 per week.
For the purpose of calculating the entitlement to incapacity payments after the expiration of maximum rate weeks, it is necessary to determine normal weekly hours (NWH). As the person has chosen f/t ADF rate of pay as the method of calculating NE, NWH are 37.5 hours as per the table included in subsection 132(2). If however the member opted to receive his pre-CFTS pay and allowance plus Reserve pay and allowances his NWH would be calculated as follows:
NWH is calculated according to the formula in section 174 as:
pre-CFTS civilian weekly hours + Reserve hours
35 + (6 x 58 x 6/313) =
35 + 6.67 hours =