AUSTRALIAN PEACEKEEPER & PEACEMAKER VETERANS’ ASSOCIATION NATIONAL EXECUTIVE HEIDELBERG REPATRIATION VETERAN CENTRE, P.O. BOX 5444, HEIDELBERG WEST, VIC, 3081 (INCORPORATED IN VICTORIA) ABN 59 558 194 094 Telephone: (03) 9496 2353 Fax: (03) 9496 2285 Mobile: 0432 099 270 Email: Kevin.Ryan@austin.org.au Website: www.peacekeepers.asn.au Patron Major General (Professor) John Pearn AO, RFD (Ret’d) Affiliated with the Soldiers of Peace International Association – SPIA http://www.fname.info/aisp/eng/ Also assisting Veterans of Iraq, Afghanistan and Peacetime Service Commemorating 20 Years of The Deployment of the Australian Contingent to the United Nations Advance Mission in Cambodia (UNAMIC) 29th October 2012 SRC Act Review Secretariat Workplace Relations Implementation and Safety Group Department of Education, Employment and Workplace Relations Location Code: C50MA1 GPO Box 9880 CANBERRA ACT 2601 The Australian Peacekeeper and Peacemaker Veterans’ Association Inc. (APPVA) Response to the Review of the Safety, Rehabilitation and Compensation (SRC) Act of 1988 – Issue Paper References: A. Review of the SRC Act of 1988 – Issue Paper dated September 2012 B. APPVA Submission to The Review of Military Compensation Arrangements dated 26 July 2009 The APPVA would like to thank the Secretariat of Workplace Relations Implementation and Safety Group (WRISG) and Department of Education, Employment and Workplace Relations (DEEWR) in giving an extension to submit our response to the Review of the Safety, Rehabilitation and Compensation Act SRC Act of 1988 – Issue Paper. We thank the Government for providing us the opportunity to review the Issue Paper, of which we will look at points raised and ensue that those ADF members both past and present in question have been given the right to procedural fairness and to ensure that they are not disadvantaged financially. In light of Government financial cutbacks, the association is of the view that the current SRC Act of 1988 is being looked at as a cost saving measure by the Government. “Looking After Our Own” Document1 Page 1 3/23/2016 2 The APPVA we look at those areas’s identified by the Government and access the impact it will have on our constituents both past and present. This Issue Paper, in our belief has been identified by those Government Agencies as cost saving measures that need to be scrutinized. The APPVA has intended to make the best possible presentation of anomalies and areas of confliction that affect those who served from 1988 to 30 June 2004 under the SRC Act of 1988. Yours Sincerely, Name Title 3 Review of the SRC Act of 1988 Terms of Reference 1. Any legislative anomalies and updates that need to be addressed, including 1.1 Identifying and resolving anomalies in the legislation and in the operation of the scheme The APPVA have in the past responded to many anomalies within the SRCA Act that pertain to those members of the Australian Defence Force (ADF) post 1988. We have always felt that an injury in peacetime should not be treated any different to one that happens on operational service. As these injuries arise out of the nature of one’s duty, this is why the APPVA submit that a commonality must be introduces towards such treatment for those who have served this country in what is viewed by the Australian Public as an honourable role. The sacrifices made in peacetime service are at times just as much as those who have deployed overseas. Therefore equality in treatment for cancers, access to VVCS and psychiatric conditions for SRCA eligible members should be provided without disrespect to the ADF member as the injury, disease or illness has arisen out of his/her service. In the APPVA submission of 2009, The Review of Military Compensation Arrangements we made contention to the removal of Section 14 which dealt with (Compensation for Injuries), (2) Compensation is not payable in respect of an injury that is intentionally self-inflicted, (3) Compensation is not payable in respect of an injury that is caused by the serious and wilful misconduct of the employee but is not intentionally self-inflicted, unless the injury results in death or serious permanent impairment. The APPVA has requested removal of Section 14 of the SRCA 1988, because members of the ADF who suffer from service caused mental illness may in fact conduct self-harm with in the sphere of mental illness. It is viewed as a reasonable expectation that some psychiatric patients may revert to toward self-harm. If that was the case, then it must be reviewed as a sequela medical condition for such self-harm medical conditions. Rank/ Appointment anomalies Under SRCA Incapacity payments under SRCA and MRCA remain the same for the first 45 weeks at 100% but when the reduction to 75% occurs MRCA reflects the 75% of the base wage and pay group but SRCA is capped at 1.5 x MATWE meaning that the higher rank and pay groups are disadvantaged by this obscure piece of 4 legislation at a rough calculation this means that they would not receive more than approximately $2000 per fortnight. This may also have implications for WO1 and WO’s of other services depending on their pay group. 1.2 The framework to achieve the objectives of providing and equitable and cost effective compensation system, with a particular emphasis on the improved rehabilitation of injured employees The APPVA suggest that separate provisions should be made for Military SRCA Coverage reflecting the significant difference between military and public service. The APPVA states that the primary aim of the scheme – should be to ensure short term financial and medical security for injured employees – then with a graduated focus on rehabilitation and possible return to work. Military personnel are less likely to be able to return to work in the military as the ADF has little provisions to accommodate significantly disabled military employees. Treatment Cards and Concessions The APPVA contends that Specified Treatment Entitlement Card (STEC) be issued for all conditions to members under SRCA. This is only if the member has satisfied the Seriously Incapacitated Adjustment (SIA), then a Gold Card should be issued if embossing of TPI. This provides for the member to have access to Concessions, consistent for those TPI veterans under the VEA. Situations have developed, where the former member has arranged a bill paying method, which is billed directly to DVA under SRCA and the supplier/ provider has refused to continue with this arrangement. The reason for this is the inordinate delay by the Department of Veterans’ Affairs to pay the bill in a timely manner. By utilising these cards, payment of pharmaceuticals is used in place of the member paying upfront for medications. As stated in the MRCA Part, a Smart Card would alleviate such problematic areas. As for Pharmaceutical matters mentioned above, the same approach be used for treatment, as the former member normally does not have to pay for treatment. This is consistent with the approaches within the VEA and MRCA. Prior to the election in 2007, the Smart Card was proposed to rectify some of these anomalies and provide a simpler, smarter and streamlined system in order to provide billing and patient history. Apparently, this was rejected as a result of the Privacy Considerations. Whilst these concerns toward Privacy and Confidentiality are unknown, it is thought that cutting edge technology would be serving a complicated system of Specified Treatments, Pharmaceuticals, Allied Health Services and 5 Specialist Health Services to a member of the forces. The APPVA noted that under the SRCA or elected MRCA by not having STEC or Gold Cards that the Australian Medical Association (AMA) practioners would be more open toward surgery than if under the VEA scheduling and costs (payments) for such treatment. In this case, it would appear that there are distinct benefits toward eligibility under the SRCA; however the problem remains with the billing and the expectation of the veteran to pay up-front costs, as most providers are reluctant to provide billing arrangement with the Department. 1.3 Ensuring fair and equitable financial, medical and rehabilitation support for injured employees and their families Beneficial Approach The APPVA noted in 2005, COMCARE presented a Permanent Impairment Guide Edition 2 (PIG 2) to government, Ex-Service Organisations (ESOs) were not consulted about PIG 2 and requested that feedback and responses by COMCARE were made available to ESOs. The APPVA highlighted that the service of an ADF member holds special circumstances with the ESO Community and indeed with the Federal Government. The approach, since 1918, has always been the “Beneficial Approach” for all current and former members of the ADF. Members of the ADF train in very hazardous circumstances that are dangerous and unique to the task of War-fighting. It is with the Beneficial Approach” in mind that we provided our initial submission in 2009 to COMCARE, as we believed that special consideration must be afforded to the members of the ADF past and currently serving by the Federal Government and in particular COMCARE. The APPVA 2009 Submission we reported significant changes in PIG 1 from 1988, this was stated by Dr Dwight Dowda, consideration toward modern medical advances have necessitated in changes to the PIG. The APPVA noted that ambiguity in the PIG 1 has caused a significant impact to the Government in compensating veterans in Permanent Impairment payments (PI). The APPVA reviewed the changes to PIG 2 which derived from the American Medical Association (AMA) 5th Edition, that we believed that the threshold of 10% whole Person Impairment (WPI) is removed from SRCA, accommodating a fairer compensation payment system to past and current ADF members who are able to claim under SRC Act of 1988. The reason for this is to provide a more fairer compensation to members of any WPI percentage of the current maximum 6 amount, the APPVA noted under PIG 2 members of the ADF who had a potential claim under SRC Act of 1988 would not have been able to receive PI of which we submit that this is due to (in some cases – particularly Musculoskeletal Conditions, that members of the ADF would be unable to secure adequate compensation, for the potential job loss. The APPVA noted that PI would be beneficial to a member of the ADF, particularly if they are being medically discharged for the claimed condition(s), in order to prepare for life outside of the ADF. The APPVA believe that the PI should be assessed using the same method under the GARP Chapter 18 (Combined Values Table) and should be eligible for such payment to the full WPI that he/she has been assessed, so if he/she scored 25% Impairment then this would be equal to 25% WPI, which is beneficial to the veteran to be paid the full 25% of the maximum amount. The APPVA looked at those members of the ADF who at the time of discharge utilised their own sick leave to compensate for injuries or illnesses incurred because of their service should be reaccredited there leave benefits and not be disadvantaged by reducing their 45 weeks of Rehabilitation because of their injuries or illnesses (as this is seen as double dipping by government) and disadvantages the ADF member. 1.4 A framework to resolve disputes quickly, fairly and at a low cost In announcing the Review, Mr Shorten indicated that the aim of the Review is to modernise the Federal Workers Compensation scheme to ensure that injured employees are given every opportunity to return to health, independence and work as quick as possible. The APPVA contends that no case is identical nor the severity of the injury, disease or condition the framework required will depend on this alone. The APPVA contends that Specified Treatment Entitlement Card (STEC) be issued for all conditions to members under SRCA. This is only if the member has satisfied the Seriously Incapacitated Adjustment (SIA), then a Gold Card should be issued if embossing of TPI. This provides for the member to have access to Concessions, consistent for those TPI veterans under the VEA. This will resolve disputes quickly and fairly. 7 1.5 Ensuring the application of employees’ compensation legislation does not disadvantage employees over the age of 65 and there is no gap between the employees’ compensation age limit and the foreshadowed increase to the age pension eligibility age to 67 by 2023. The APPVA contends that Incapacity payments (IP), both under SRCA and MRCA, should also include the recently announced retirement date by the government in the 2009 Budget as being aged 67 on 2017, now extended to 2023. This consideration must be legislated prior to implementation of the Government’s plan of the extended retirement age for recipient of IP. 2. The performance of the COMCARE Scheme and ways to improve its operation, including 2.1 An examination of the different outcomes achieved by private and public sector employers concerning the recovery and return to work of injured employees Nature of Duty – Unique Service The APPVA highlighted that the service of an ADF member holds special circumstances with the ESO Community and indeed with the Federal Government. The approach, since 1918, has always been the “Beneficial Approach” for all current and former members of the ADF. Members of the ADF train in very hazardous circumstances that are dangerous and unique to the task of War-fighting. It is with the Beneficial Approach” in mind that we provided our initial submission in 2009 to COMCARE, as we believed that special consideration must be afforded to the members of the ADF past and currently serving by the Federal Government and in particular COMCARE. 2.2 Improved delivery of recovery and support services by COMCARE Whilst the Transition Management Service (TMS) has been of assistance to those transitioning from the ADF to Civvie Street (life outside of the ADF), the concept has merit, however there are some areas that is felt that requires further development. For some years the APPVA have thought that the TMS appears to be a tick and flick approach utilising a list of actions required for processing discharges. It would appear that whilst there are 8 some areas easily covered and actioned by Defence Discharge Cell personnel, the knowledge of VEA, SRCA and MRCA appears to be unable to be fully explained to an ADF member. In the past cases have seen TMS staff visiting medicated psychiatric patients for signatures and briefings within the Psychiatric Ward of a given hospital. It must be emphasised that TMS Staff must be made aware that these mentally-ill ADF members are unable to fully comprehend such complicated procedures and are not fit to sign acknowledgement forms until they have stabilised. The APPVA have strongly recommended that the above practice ceases, with TMS Staff specifically briefed and policy made to ensure such circumstances does not re-occur. It is important that the member, along with his/ her partner is able to comprehend the transition process and procedures when the ill veteran is at a stage of a degree of stabilisation on the recommendation of the consulting specialist. 3. The financial framework of the COMCARE Scheme, including 3.3 The financial sustainability of the scheme The APPVA contends that the financial sustainability of the scheme will depend on the issuing of Specified Treatment Entitlement Card (STEC) be issued for all conditions to members under SRCA. This can also be enhanced by the issuing of a Gold Card should be issued with the embossing of TPI to those members who meet the criteria under Seriously Incapacitated Adjustment (SIA). This provides for the member to have access to Concessions, consistent for those TPI veterans under the VEA. Situations have developed, where the former member has arranged a bill paying method, which is billed directly to DVA under SRCA and the supplier/ provider has refused to continue with this arrangement. The reason for this is the inordinate delay by the Department of Veterans’ Affairs to pay the bill in a timely manner. By utilising these cards, payment of pharmaceuticals is used in place of the member paying upfront for medications. A Smart Card would have alleviated such problematic areas as we indicated in our 2009 report if it was accepted by then Federal Government. 9 3.4 A premium framework that improves and rewards scheme performance The APPVA welcomes the Federal Government’s approval of the issuing of white cards to those members for specific conditions under Peacetime Service which is due to roll out in 2013 and would like to see the issue of Gold Cards embossed TPI for those who are deemed to be Totally and Permanently Incapacitated due to their Peacetime Service. Removal of 10% Whole Person Impairment The APPVA identified significant changes in PIG 2 in comparison to the 1st Edition (PIG 1) from 1988. This was stated by Dr Dwight Dowda, consideration toward modern medical advances have necessitated in changes to the PIG. In addition, it also noted that ambiguity in PIG 1 has caused a significant impact to the Government in compensating veterans in Permanent Impairment Payments (PI). It is with the consideration of the necessary changes to the PIG 2, derived from the American Medical Association (AMA) 5th Edition that we believe that the threshold of 10% Whole Person Impairment (WPI) is removed from the SRCA, accommodating a fairer compensation payment system. The reason the APPVA put forward this proposal is to provide compensation to veterans of any WPI percentage of the current maximum amount. It was noted that a number of veteran of veterans would not have been able to receive PI under PIG 2, of which we submit that this is due to (in some cases – particularly musculoskeletal conditions) that veterans would be unable to secure adequate compensation, for the potential of job loss. The PI would be beneficial to a veteran, particularly if they are being medically discharged for the claimed condition(s), in order to prepare for life outside of the ADF. We believe if a veteran is able to say, gain 13% WPI, then the veteran should be eligible for such payment to the full WPI that he/she has been assessed. Therefore 13% of the SRCA maximum amount for lump sum compensation (PI). In addition to the above comments we also submit that combined values (Combined Values Table (CVT), of say a veteran who gains 8% WPI for Lumbar Spine and 18% for Thoracic Spine conditions would be equal to 25% WPI, which is beneficial to the veteran to be paid the full 25% of the maximum amount. 10 3.5 The governance arrangements for COMCARE The APPVA is aware that the SRCA 1988 is articulated with the introduction of the Military Compensation and Rehabilitation Scheme (MRCS) 1994. The APPVA highlighted that the service of an ADF member holds special circumstances within the ESO Community and indeed with the Federal Government. The approach since 1918 has always been the beneficial approach for all current and former Service men and women. Members of the ADF work and train in very hazardous circumstances that are dangerous and unique to the task of Warfighting. It is with the Beneficial Approach in mind that we continue to remind COMCARE, as we believe special consideration must be afforded to veterans and serving ADF members by the Federal Government and indeed COMCARE. 3.6 Ensuring that the financial framework is consistent with contemporary prudential management practice The APPVA contends that the Federal Government will try and implement the COMCARE PIG 2 guide which covers all Australian Government workers, this cover also provides cover for employees of small number of private corporations who self-insure under the Commonwealth Scheme, and employees of the ACT Government. The APPVA needs to remind the Federal Government that the sacrifices made in peacetime service are at times just as much as those who have deployed overseas and that the beneficial approach should and foremost be adopted. The review reiterates that they will not consider any reductions in the existing benefits afforded to workers covered under the scheme, but will seek to further improve it to achieve fair and equitable outcomes for injured workers with a strong focus on rehabilitation. The APPVA seeks further consultation by government bodies if any approach is given to PIG 2 because of the disadvantages within the PIG 2 guide members who have an entitlement under the existing legislation.