It may enable officers to transition into a new career, study, retirement or simply towards building a new life outside of the organisation. To support officers in their alternate career/life path options, the ODS includes a financial payment and career transition support.
We are pleased to be able to relay key information about the Optional Disengagement Scheme (ODS) as released by the NSWPF today.
The NSWPF has applied for and obtained a special class ruling from the Australian Taxation Office (ATO) regarding the financial payment for the ODS. The payment for tax purposes will be termed as “Early Retirement Scheme” and payments made to employees will be eligible for concessional tax treatment.
EligibilityTo be eligible for ODS, officers must satisfy the following criteria:
- a current serving non-commissioned or commissioned officer (other than a Probationary Constable)
- having completed a minimum of 10 years continuous service (with previous service of officers who have been re-appointed into the NSWPF not being recognised for this purpose)
- under age pension age at the time of terminating employment
- have submitted an intent to resign or retire from 1 July 2021
- are subject to a process that may result in their retirement or removal
- are, or become, the subject of an active investigation or conduct action under Parts 8A or 9 of the Police Act 1990
- are in receipt of any weekly Workers Compensation benefit payments under Division 2 of Part 3 of the Workers Compensation Act 1987 (NSW)
Career Transition SupportAs Career Transition support is an important part of the scheme, the NSWPF has partnered with Fortem Australia to provide a tailored ODS career transition support service to officers exiting the organisation through the ODS.
Officers are encouraged to seek independent financial and career transition advice to enable an informed decision before applying for ODS.
ODS Payment GuideEligible officers who exit under ODS will receive a lump sum payment calculated using the following formula:
- 4 x weeks’ base pay for each year of service capped at 30 years’ service
- 4 x weeks’ base pay in lieu of notice
- 8 x weeks’ base pay incentive
- 1 x additional week’s base pay for officers aged over 45
Payment is calculated using the base salary as specified in the Police Award for the officer’s substantive rank only. The loaded salary, specialist allowances and pay-scales (e.g., special duties allowances, detectives pay-scale etc.) will not be used for the purpose of calculating payment.
NOTE: The maximum total payment available to officers (irrespective of substantive rank) is capped at the equivalent amount of up to a Sergeant, Level 9 with 30 years total service. Interested officers should utilise the ODS Financial Estimator which will be available from the 20th December and will be located in Blue Portal which will include an online calculator.
ATO Class RulingThe NSWPF has applied for and obtained a special ruling from the Australian Taxation Office (ATO) regarding the financial payment for the ODS. The payment for tax purposes will be termed as an “Early Retirement Scheme” and payments made to employees will be eligible for concessional tax treatment as follows:
|Pay Component||Concessional limit||Tax rate|
|Tax free portion||$11,341 plus $5,672 for each whole year of completed service||0%|
|Employment Termination Payment||Up to $225,000||17% (over preservation age)
32% (under preservation age)
For the full eligibility criteria and clearance requirements, officers must refer to the HR ODS Intranet page which will be updated in the coming weeks. The Intranet link is:
ODS will be open for applications in January 2022, however from 20th December 2021 interested officers are encouraged to go to BluePortal, to access and obtain a financial estimate.
For more information, please refer to the HR ODS Intranet page in the first instance. You can also contact the PANSW on 9265 6777 or email@example.com for assistance to ensure we obtain answers to your queries.