Document ID: chunk:federal_register_of_legislation:F2012C00542:body:0:p9
Version: federal_register_of_legislation:F2012C00542
Segment Type: other
Provision Reference: 
Character Range: 20324–23243

(b) the non‑indexed component of the reduction in reversionary pension from step 4.
Step 7  Work out the annual rate of the non‑indexed component of the current reversionary pension that would be payable to a surviving spouse if the member spouse were to have died at the date of commencement of the later standard pension (the current reversionary pension non‑indexed component) by subtracting the reduction in the non‑indexed component of the reversionary pension at the operative time from step 4 from the non‑indexed component of the unreduced standard pension identified in step 1.
        If the amount calculated is less than zero, the current reversionary pension non‑indexed component is zero.
Step 8  Work out the annual rate of the indexed component of the reversionary pension that would be payable to a surviving spouse if the member spouse were to have died at the date of commencement of the later standard pension by subtracting the current reversionary pension non‑indexed component from step 7 from the current reversionary pension in step 6.

2.10 Reduction of later standard pensions payable under section 38 of the Act

  For subsection 49E (1A) of the Act, the amount to which an annual rate of a later standard pension payable under section 38 of the Act in respect of an original interest is to be reduced is calculated as follows:

Step 1  Identify:
         (a) the annual rate of the standard reversionary pension that would have been payable to a surviving spouse at the date of commencement of the later standard pension if there had not been a family law split (the unreduced standard reversionary pension); and
         (b) the indexed and non‑indexed components of the unreduced standard reversionary pension.
Step 2  Identify:
         (a) the annual rate of the standard reversionary pension that would have been payable to a surviving spouse if the member spouse had died immediately before the operative time (the pre‑split standard reversionary pension); and
         (b) the indexed and non‑indexed components of the pre‑split standard reversionary pension.
Step 3  Work out the annual rate of standard reversionary pension payable in respect of the original interest to a surviving spouse of the member spouse had died immediately after the operative time (the post‑split standard reversionary pension) by multiplying the pre‑split standard reversionary pension by the reduction factor calculated in step 3 in subsection 2.09 (1).
        Work out the indexed and non‑indexed components of the post‑split standard reversionary pension. They are in the same proportion to the post‑split standard reversionary pension as they were to the pre‑split standard reversionary pension.
Step 4  Work out the reduction in the standard reversionary pension at the operative time (the reduction in standard reversionary pension) by subtracting the post‑split standard reversionary pension from