COMCARE OPERATIONAL ADVICE NO 118

IMPLEMENTATION OF THE AUGUST 1991 PUBLIC SECTOR PAY DECISION ‑ COMPENSATION IMPLICATIONS

State Managers

State Operations Managers

State Review Managers

State Rehabilitation Managers

State Executive Officers

Branch Managers

Section Managers

Central Office Directors

The Department of Industrial Relations Implementation Circular in relation to the above salary adjustment also makes reference to the $12 pw Based Lump Sum Payment.

Following discussions with the Department of Industrial Relations, it has been established that the $12 pw Based Lump Sum Payment does not fit within the meaning of Normal Weekly Earnings as defined in Section 4 (1) of the CERC Act 1988.  The payment is a lump sum payment, paid through the salary system but not related to award entitlements.

Accordingly, this payment should not be included in or have any effect on compensation entitlements.

An Agency Advice (copy attached) has been issued to advise agencies of the above and that responsibility for payment of the lump sum for employees receiving workers compensation incapacity payments will remain with them, not with Comcare.  Agencies have been advised to reclaim these payments as part of the supplementation sought from the Department of Finance for the wage adjustment.

It should be noted that the lump sum payment will not be included in the premium calculation under the CERC Act 1988.

For your information, the Department of Industrial Relations has advised agencies to note the following points when processing the lump sum:

staff who ceased employment prior to 15 August 1991 are NOT entitled to the lump sum payment;

staff who are in receipt of compensation benefits based on:

.Reduced amount after 45 weeks

.Graduated return to work

do not qualify for the full lump sum entitlement. The relevant percentage of NWE as per the CERC Act is to be applied to the Lump Sum entitlement for each pay period between 23 May 1991 to 14 August 1991.

Any questions on this advice should be directed to Mark McCabe on (06) 2750080.

ROBERT KNAPP

Deputy Chief Executive

19 December 1991