Document ID: chunk:federal_register_of_legislation:F2024C01248:schedule:1a:p3
Version: federal_register_of_legislation:F2024C01248
Segment Type: schedule
Provision Reference: sch 1A (pt 3/5)
Character Range: 236321–238996

in the fund.

1.8  Method of working out amount of notional taxed contributions
  The method of working out the notional taxed contributions for an accruing member of a defined benefit fund for a financial year is the following formula:

where, for the financial year:
category change or discretion adjustment amount is an amount worked out on advice from an actuary under Part 5.
governing rules change adjustment amount is an amount worked out on advice from an actuary under Part 6.
increased exit benefit adjustment amount is an amount worked out on advice from an actuary under Part 4.
increased superannuation salary adjustment amount is an amount worked out on advice from an actuary under Part 7.
standard method NTCs is the sum of the amounts of NTC for each benefit category that the member belongs to during the financial year calculated under clauses 1.6 and 1.7.

Part 2—New entrant rate

2.1  Method of working out new entrant rate for a benefit category
 (1) The new entrant rate for a benefit category is the rate calculated under this Part and using the assumptions set out in Part 3.
 (2) The new entrant rate for a benefit category is the rate that represents the long‑term cost, expressed as a percentage of superannuation salary, of providing as much of the fund benefit as is payable on a voluntary exit to a hypothetical new entrant to the benefit category.
 (3) The new entrant rate is calculated as the present value of the fund benefit payable on voluntary exit (resignation, early retirement, or retirement) under the rules of the defined benefit fund which are applicable to a new entrant to the benefit category divided by the present value of future superannuation salaries payable to the new entrant.
 (4) To avoid doubt, the new entrant rate is to be calculated assuming that the fund benefit is to be wholly sourced from concessional contributions made into the fund at the new entrant rate and earnings on those contributions.
 (5) The present value of the fund benefit is to be calculated having regard to the rules and practice of the defined benefit fund including benefit structure, caps, member options, reasonably expected discretions and member contributions, and using the economic, decrement and other parameters and the other assumptions set out in Part 3.

2.2  New entrant rate to be based on period of membership needed to reach maximum benefit accrual
  If the rules of the defined benefit fund applicable to the benefit category provide for a maximum benefit accrual, the new entrant rate is to be calculated on the basis that the benefit is funded over the period to when maximum accrual is attained.
Note: This means that,