Long Service Leave Fund Fundamentals

SUMMARY OF THE MAIN PROVISIONS OF THE FUND

The Long Service Leave Fund was created in 1966 by the Canon of the General Synod of the Anglican Church of Australia. The Fund operates under General Synod Canon 2010 with effect from 1 January 2015 (former Canon 1992-1995).

ELIGIBLE PARTICIPANTS (FORMERLY KNOWN AS MEMBERS)

In accordance with the LSLF 2010 Canon , participants is a member of Clergy in receipt of an ordinary stipend, or is a member of a class of people defined with the consent of the Board as a participant by the participating diocese or participating organisation.  

A member of Clergy includes:

  • A bishop of a diocese;
  • a person in holy orders  collated instituted or licensed by the bishop of a diocese to the cure of souls in a parish or to any other appointment in a parish;
  • a bishop, dean, archdeacon, canon, principal, vice principal or tutor in holy orders of a university or theological college, a principal of a school or a chaplain, or other person in holy orders licensed to a distinct official position in the diocese or holding some other licence of the bishop of the diocese.
  • A person in holy orders on missionary service; or
  • A person licenced by the bishop of the diocese to exercise the office of deaconess in that diocese.
  • The Bishop to the Defence Force, and Defence Force chaplains in holy orders. (Please note that this is a new class for eligible participants, effective 1 January 2015)

The Board has consented to the following classes of persons, who are licensed by a Bishop, and in receipt of an ordinary stipend to be eligible participants in the Fund.  

  • Lay ministers
  • Lay Theological Lecturers
  • Lay Chaplains

Part time participants

A member of clergy or other eligible classes of persons in part time service in a participating diocese or participating organisation are eligible to be in the Fund. The payment for contributions as well as the payment of leave is pro-rated according to the advice given to the Fund by the participating diocese or organisation.

The Board has introduced a policy for part time participants in the Fund –

  • The Board encourages the dioceses and organisations to maintain the same FTE for a participant for a reasonable period. The dioceses are to allocate the full-time equivalent period for a minimum of 1 quarter.
  • The FTE service is to be amended at the beginning of each quarter, and not during the quarter.
  • The allocations for Full Time Equivalent (FTE) service may be distributed in accordance with the policies of the participating dioceses and participating organisations. The apportionment should be allocated in whole numbers such as 0.20 or 0.40 and not in denominations of 0.1997 etc., for example.

Participating Organisation means –

  • An organisation which employs 1 or more members of clergy and agrees to the terms and conditions of participating in the scheme of this Canon, upon application to and approval by the Board to become a participating organisation.

Qualifying Service and Entitlements

Qualifying Service is service rendered in a participating diocese or organisation, and who participates in the schemes of the former Canons and the current Canon.

  • In accordance with the former Canon 1992-1997 participants of the Long Service Leave Fund are entitled to 10 weeks LSL on completion of 10 years qualifying service in respect of each year of qualifying service prior to the Commencement Date of the LSLF 2010 Canon.
  • The 2010 Canon came into effect on the 1 January 2015. The entitlement for participants are at a rate of 13 weeks for 10 years qualifying service, 1.3 weeks in respect of each year of qualifying service from and after the Commencement Date of the 2010 Canon.
  • From 1 January 2018 the entitlement has reverted to 1 week of qualifying service in respect of each completed year of service. This is called the “Revision of Entitlement”
  • It is unlawful for members to take Long Service Leave and continue with paid employment during the period of long service leave.
  • Long Service Leave cannot be paid as cash in lieu of leave, except as provided for in the Canon.

Payments of Long Service Leave

Notional Stipend

  • The Notional Stipend is reviewed annually by the Board. The Standing Committee upon advice by the Board approves the rate of the Notional Stipend which is used to determine the amount paid for each week of LSL taken.
  • Benefits are paid by the Fund and are made to the appropriate diocese or participating organization, to be paid to the member requesting the leave. The leave benefits should be paid as agreed between the participant, and the diocese or organization and in accordance with diocesan policies.
  • The balance of the leave component of the payment is facilitated by the Diocese to assist in the payment for the replacement locum, etc.

Sabbatical Allowance (formerly known as Supplementary Allowance)

  • The Sabbatical Allowance was introduced from the 1 January 1987 to encourage and assist participants with the cost of taking leave.
  • The Sabbatical Allowance is payable for Long Service Leave taken, and is not payable on resignation, retirement, death or permanent disablement.
  • The Board periodically reviews the rate set for the Sabbatical Allowance.
  • The rate for the Sabbatical Allowance was set at 80% of the Notional Stipend up to the 31 December 2015.
  • For the 2016 year the Board has revised the rate for the Sabbatical Allowance benefit to the rate of 75%, and for the 2017 period to the rate 70%.
  • The Board has reviewed the rate and agreed to revert to 80% of the Notional Stipend. This is called the “Revision of Entitlement”, with effect from 1 January 2018.

Payment in Lieu Of Resignation or Retirement

  • When a participant of the Fund who completes not less than 5 years qualifying service resigns or retires, the participant is to be paid one week for each year of service completed before the Commencement Date of the 2010 Canon, and 1.3 weeks for each year of service completed after the Commencement Date (1 January 2015) of the 2010 Canon, together with a proportionate payment for any incomplete year of qualifying service. This payment is not to include the sabbatical allowance.
  • With effect from 1 January 2018 the entitlement has reverted to 1 week of qualifying service in respect of each completed year of service. This is called the “Revision of Entitlement”

Payment in Lieu Of Death

  • If the qualifying service of a participant terminates by reason of the participant’s death, then an amount for each completed year of service is to be paid, one week for each year qualifying service before the Commencement Date of the 2010 Canon, and 1.3 weeks for each year completed after the Commencement Date of the 2010 Canon together with a pro-rata payment for any incomplete year of service rendered.
  • With effect from 1 January 2018 the entitlement has reverted to 1 week of leave in respect of each completed year of service together with a pro-rata payment for any incomplete year of service rendered. This is called the “Revision of Entitlement”.
  • This payment is not to include the Sabbatical Allowance.

Periods of leave

  • There is no minimum amount for weeks of leave that a participant may take.
  • Any period of leave granted must consist of 7 days for 1 week of leave.
  • The Long Service Leave period is to include public holidays but to exclude annual holidays and sick leave.

Notice of leave

Every participating diocese or participating organisation must determine when participants may take leave, and if the participant so agrees must give at least 3 months notice of the date from which the leave is proposed to be taken.

“Buy-back” prior service

Sometimes due to an oversight or other reason a participant is excluded from the Fund.  A “buy-back” of that service was introduced to counter the omission.

The Board has formulated policies for the “buy-back” and resolved that –

  1. The “buy-back” of past service is to be limited to a period of up to three years, without making application for the Board to consider the request for a “buy-back”.
  1. The participating dioceses and organisations is to make an application to the Board for consideration if the “buyback” for eligible past service exceeds a three year period. The request for the “buyback” is not to exceed a period of 10 years.
  1. When making an application for the Board to consider a “buy-back” for a period greater than 3 years and not more than 10 years, the participating diocese and participating organisations is to state the following –
  • Provide the reason why the clergy, lay minister, chaplain, lay chaplain, theological lecturer or lay theological lecturer was not previously included in the Fund.
  • State the role the person carried out during the requested “buyback” period.
  • Confirm if the person has either taken Long Service Leave or received a Long Service Leave payment in the past.