Publication:Sea Talk Winter 2008/Navy Capability Allowance – the details
By Annie Casey
The recently announced Navy Capability Allowance (NCA) is aimed at retaining trained and experienced serving sailors. NCA is just one of the latest in a range of incentives, allowances or benefits available to assist with the retention of sailors and officers.
The NCA provides for the payment of an allowance to all sailors from able seaman to chief petty officer who are individually ready and who have completed their initial minimum period of service. In return, sailors will complete a return of service obligation (ROSO) of 18 months. The amounts of the NCA are $24,000 for general service sailors and $60,000 for qualified submariners, to be paid in three lump sum instalments.
Eligible sailors can apply for the NCA in addition to the existing range of financial retention schemes. Those currently undertaking a period of further service associated with another retention scheme, including the MSBS retention benefit, will be eligible to apply for the NCA. NCA ROSO will be added to any existing undertaking, thus extending the total service obligation.
The Chief of Navy, VADM Russ Shalders, AO, CSC, RAN, described the decision as ‘an excellent outcome for Navy and our sailors’.
The NCA is the result of more than nine months of development and reflects the outcomes of extensive negotiations between Navy and Personnel Executive, the Defence Force Remuneration Tribunal (DFRT), the Commonwealth (through the Department of Education, Employment and Workplace Relations) and CDF.
“Approval of the NCA is a great result for Navy which provides a substantial financial incentive for trained and experienced sailors to remain with us,” VADM Shalders said. “It is a critical short-term initiative among a range of ongoing reforms designed to ensure the continued delivery of Navy capability.”
VADM Shalders emphasised that the NCA is a short-term targeted initiative to maintain Navy capability and facilitate workforce recovery by retaining trained and experienced sailors
“Longer term remuneration outcomes for sailors are being pursued through further reform of the graded other ranks pay structure (GORPS),” he said. “A series of DFRT hearings to consider the GORPS case has been brought forward to between May and August this year.
Sailors keen to take up the NCA, should complete the NCA application form at:
http://intranet.defence.gov.au/navyweb/Sites/DGNPT/docs/NCAApplication
There are three options for NCA payment: eligible sailors can have it paid into the their normal pay account (with the amount taxed at the applicable tax rate at the time of payment) or paid as an employer contribution to superannuation. (This election is made once, but members will later be able to vary this election for payment not yet received or paid as a combination of these.
Sailors are strongly advised to seek professional financial advice when making this decision.
THE NCA IN BRIEF
Eligibility:
- AB-CPO rank.
- Rendering continuous full time service (PN or NR on CFTS)
- On completion of Initial Minimum Period of Service (IMPS)
- Individual Readiness (IR) compliant IAW DI(N)PERS 31-46.
- Not subject to RNIN action.
- Amount $24k for general service sailors and $60k for submarine sailors.
Payment Schedule:
- $6k/$15k on sign up
- $6k/$15k after 6 months
- $12k/$30k after a further 6 months
Return of Service Obligation (ROSO). 18 months effective service to be undertaken on completion of any existing undertaking for further service. Ineffective service will extend the NCA undertaking beyond 18 months
- Eligibility period. Scheme entry open to 30 Jun 10.
- Promotion. Promotion to WO or commissioning has no effect on members already in the scheme.
- Scheme Entry. Scheme entry will be via sailor application to DSCM.
Full details are available on the NPT DRN website at: http://intranet.defence.gov.au/navyweb/Sites/DGNPT/
Enquiries to DSCM by e-mail or telephone to: navy.completionbonuses@defence.gov.au
08 9553 5186 for AT, ET, MT and all SM categories
02 6265 3122 for all other categories.
