EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO 188
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS (ANNUAL RATES OF PAY) REGULATIONS (AMENDMENT)
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (“the Regulations”) prescribe, in respect of a member, an “annual rate of pay” according to which contributions payable and a member’s entitlements under the Defence Force Retirement and Death Benefits Scheme are calculated. Essentially, a member’s “annual rate of pay” comprises his basic salary plus allowances specified in the Regulations.
This Statutory Rule makes changes to the “annual rate of pay” of some members of the Defence Force as a result of various changes in the salary and allowance entitlements of those members.
Allowances affected by the Coldham Report
The Third Report of the Committee of Reference for Defence Force Pay on the Adequacy of Defence Force Remuneration (Coldham Report), which recommended salary increases for members of the Defence Force with effect from 5 November 1981, also recommended the abolition of a number of allowances including command money and good conduct increments with effect from the same date.
Sub-section 48(2) of the Acts Interpretation Act 1901 provides that regulations shall not be expressed to take effect from a date before the date of notification in any case where, if the regulations so took effect:
(a) the rights of a person (other than the Commonwealth or an authority of the Commonwealth) existing at the date of notification, would be affected in a manner prejudicial to that person: or
(b) liabilities would be imposed on any person (other than the Commonwealth or an authority of the Commonwealth) in respect of anything done or omitted to be done before the date of notification.
Due to the provisions of sub-section 48(2) it was not possible to abolish command money and good conduct increments retrospectively. Instead, during the interim period from 5 November 1981 to the day prior to the date of gazettal of the Statutory Rules implementing the Coldham Report, members entitled to these allowances continued to be paid an amount in respect of them but the amount they received by way of salary increase was correspondingly reduced from the figures recommended in the Coldham Report. The total amount received by a member during this period was the same irrespective of whether he had an entitlement to these allowances, but for a member who was so entitled the total received was made up of a diminished salary increase component and an allowance component.
As it is not intended that the “annual rate of pay” applicable to these members be affected by this arrangement, it was necessary to amend the Regulations to allow these members to include command money and good conduct increments in their annual rate of pay during the interim period.
On 3 March 1982 command money and good conduct increments were abolished, so from that date the members concerned have been entitled to full salary rates and an “annual rate of pay” based on those rates.
The amendment dealt with in paragraph 1(e) of this Statutory Rule inserts a new sub-regulation 4(6A) in the Regulations to include amounts payable for command money (regulation 18 of the Naval Financial Regulations) and good conduct increments (regulations 38 of the Naval Financial Regulations, 13 of the Military Financial Regulations, and 552 of the Air Force Regulations).
The amendment has effect from 5 November 1981 to cater for the arrangement outlined above. There is no requirement for a cut-off point because, from the date of abolition of the allowances concerned, sub-regulation 4(6A) ceased to operate.
Service allowance and special allowance
Paragraph 4(3)(a) of the Regulations provides for service allowance, payable under regulation 10 of the Defence Force (Salaries) Regulations, and a special allowance for medical and dental officers, payable under regulation 10A of the Defence Force (Salaries) Regulations, to be included in the annual rate of pay of a member
entitled to those allowances. It was necessary to amend regulation 4 because the allowances concerned are to be paid under determinations made under section 58B of the Defence Act instead of under regulations in the Defence Force (Salaries) Regulations.
Paragraph 1(a) of the Statutory Rule inserts a new sub-regulation 4(1) in the Regulations to define “service allowance” as a service allowance for members specified by the Minister and “special allowance” as a special allowance for medical officers and dental officers specified by the Minister.
Paragraph 1(b) of the Statutory Rule redrafts the current paragraph 4(3)(a) to remove references to regulation 10 and regulation 10A of the Defence Force (Salaries) Regulations so that the paragraph simply refers to service allowance and special allowance.
As it is proposed to introduce a new rate of special allowance with effect from 31 December 1981, paragraph 1(b) of the proposed Statutory Rule, insofar as it relates to special allowance, applies from that date.
Principal naval chaplain
Sub-regulation 4(5) of the Regulations prescribes an “annual rate of pay” for chaplains based on the number of years of service which they have completed. The provisions of sub-regulation 4(5) do not apply to a chaplain-general (Army) or a principal air chaplain as a specific rate of salary is prescribed in respect of these appointments in Schedule 6 to the Defence Force (Salaries) Regulations.
Since 5 November 1981 a specific rate has also been prescribed in the Defence Force (Salaries) Regulations for principal naval chaplains, so chaplains holding this appointment are no longer paid according to years of service.
Paragraph 1(c) of the Statutory Rule excludes principal naval chaplains from the provisions of sub-regulation 4(5) of the Regulations so that the “annual rate of pay” of a principal naval chaplain, along with a chaplain-general or a principal air chaplain, is the annual rate of salary prescribed in Schedule 6 to the Defence Force (Salaries) Regulations in respect of these appointments.
This amendment has effect from 5 November 1981, the date from which a specific rate of salary was prescribed for principal naval chaplains.
Members undergoing training
Schedule 9 to the Defence Force (Salaries) Regulations prescribes rates of salary payable to trainees. Schedule 9 was amended on 18 December 1981 to add a new item, item 11, which prescribes rates of salary for junior trainees undergoing a Certificate of Technology course.
Sub-regulation 4(6) of the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations prescribes the “annual rate of pay” of various members undergoing training.
Paragraph (a) of sub-regulation 4(6) provides that for Item 3 trainees (junior trainees and apprentices) the “annual rate of pay” of a first year trainee is the annual rate of salary applicable under Schedule 9 to the Defence Force (Salaries) Regulations to a second year trainee. This is in line with the policy in relation to members other than trainees, expressed in sub-regulation 4(2) of the Regulations, that, where there is more than one increment provided for in the Defence Force (Salaries) Regulations, the annual rate of pay of a member who is paid according to years of service shall be the highest increment prescribed for his rank.
Paragraph 1(d) of the Statutory Rule applies the same principle to Certificate of Technology course trainees and provides in a new paragraph 4(6)(e) that the “annual rate of pay” of a first year trainee is the annual rate of salary prescribed in the Defence Force (Salaries) Regulations in respect of a second year trainee.
This amendment has effect from the date of gazettal.
Retrospective operation
The effect of the proposed amendments is, inter alia, to increase retrospectively the liability of some members to make contributions under the Defence Force Retirement and Death Benefits Act. The amendments also increase the retirement benefits of affected members who retired during the retrospective period.
Sub-section 131(2) of that Act provides that where the pay of a class of members of the Defence Force is increased or reduced, regulations for the purpose of the definition of “annual rate of pay” in relation to members included in that class made after the date on and from which the increase or reduction took effect may be expressed to have taken effect from and including that date.