Commonwealth Numbered Regulations - Explanatory Statements

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DEFENCE FORCE RETIREMENT AND DEATH BENEFITS (ANNUAL RATES OF PAY) REGULATIONS (AMENDMENT) 1991 NO. 133

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 133

ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE SCIENCE AND PERSONNEL

DEFENCE FORCE RETIREMENT AND DEATH BENEFITS (ANNUAL RATES OF PAY) REGULATIONS (AMENDMENT)

Section 3 of the Defence Force Retirement and Death Benefits Act 1973 ("the Act") provides for the "annual rate of pay" for members of the Defence Force (the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme) to be prescribed.

The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations ("the Regulations"), made under the Act, prescribe the annual rates of pay for the purposes of section 3 of that Act.

The Defence Force has reviewed the organisation of Service chaplains, and restructured the classification of chaplains. The Regulations contain provisions that required amendment to reflect the restructuring.

Under the restructuring, chaplains are classified into 5 Divisions. This new divisional classification has formed the basis of two salary determinations (one for chaplains in the Permanent Forces, and the other for Reserve chaplains) by the Defence Force Remuneration Tribunal ("the Tribunal"). The classification will also be the basis for prescribing the annual rate of pay applicable for Defence Force Retirement and Death Benefits ("DFRDB") purposes. In addition, the classification enables chaplains to be assigned notional ranks corresponding to the ranks held by officers generally. (Chaplains hold no rank other than that of chaplain, and do not exercise rank-related functions such as command. However, notional ranks are assigned for circumstances where equivalence is necessary.)

The Statutory Rule makes the necessary changes to reflect the restructuring.

Regulation 4 of the Regulations prescribes annual rates of pay for the purposes of the DFRDB Scheme. Subregulation 4(3) provides for the annual rate of pay to be a member's salary plus certain specified allowances. However, this provision is subject to subregulation 4(5) which makes special provision for the annual rate of pay of chaplains. The annual rate of pay for chaplains is ascertained by reference to determinations made under section 58B of the Defence Act as amended by determinations of the Tribunal.

A new salary structure for chaplains was determined by the Tribunal on 13 September 1990, based on the new divisional structure.

Previously, subregulation 4(5) tied the annual rate of a chaplain's pay to the length of his or her service as a chaplain in the Defence Force, and not to the classification system.

The Statutory Rule replaces subregulation 4(5) with a provision that fixes the annual rate of pay of chaplains by reference to the new divisional classification. For chaplains in Division 1 or 2 the annual rate of pay for the purposes of the DFRDB Scheme is the top rate of salary determined by the Tribunal for those Divisions. For chaplains in Division 3, 4 or 5 the annual rate of pay applicable is the annual rate of salary of the chaplain as determined by the Tribunal. (The top rate of salary is used for Division 1 and 2 chaplains as they have a number of salary increments. This is in accordance with the approach taken in other areas of the Defence Force where there are a number of increments applicable. No increments apply to Division 3, 4 and 5 chaplains.)

The Statutory Rule is taken to have commenced on 19 July 1990, the date of effect of the Tribunal's salary determinations. The Statutory Rule needs to have retrospective effect to ensure that salary paid in line with the new classifications will be reflected for DFRDB purposes. The retrospectivity does not adversely affect the rights or conditions of service of any chaplains.


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