Reserve Force Retirement Gratuity

Before March 1, 2007, the formula for calculating the lump-sum amounts payable under the Reserve Force Retirement Gratuity (RFRG) recognized service based on elapsed time rather than actual periods of paid service. This feature reflected the absence of a pension plan for Reservists.

This changes 1 March 2007. Although eligibility for the RFRG has not changed— service before and after 1 March 2007 is used to determine your eligibility for benefits—the number of years of Reserve Force service used in the calculation will now be based on:

Elapsed time For service up to 28 February 2007
Paid service:
  • 1 day Class A service = 1.4 days
  • 1 day Class B or C service =1 day
 For service starting 1 March 2007

The service in the calculation after 1 March 2007 is based on:

number of full years of eligible enrolment before 1 March 2007

+

number of full years of paid service on or after 1 March 2007