Document ID: chunk:federal_register_of_legislation:F2013L00458:reg:10:p1
Version: federal_register_of_legislation:F2013L00458
Segment Type: reg
Provision Reference: reg 10 (pt 1/2)
Character Range: 9634–12680

10  Operative time during growth phase—reduction of associate deferred pension
  For section 17AG of the Act, the annual rate of the associate deferred pension (when it becomes payable) is reduced to the amount calculated as follows:

      Method statement
           Step 1. Identify the transfer amount that was payable at the operative time.
           Step 2A. Add the amount identified in step 1 to the increases in the transfer amount calculated in steps 2B, 2C and 2D.
           Step 2B. First period
            Identify the shorter of:

                (a) the period between the operative time and the end of the financial year in which the operative time occurs; and
                (b) the period between the operative time and when the associate deferred pension becomes payable.

            This is the first period.
            Calculate the increase in the transfer amount for the first period using the formula:

            where:
            amount is the amount identified in step 1.
            rate is the Treasury bond rate for the financial year in which the first period occurs.
            time is the number of days in the first period.
            Round the result to 2 decimal places (rounding up if the third decimal place is 5 or more).
           Step 2C. Second period (if any)
            Use this step if one or more full financial years occurs immediately after the end of the first period and before the associate deferred pension becomes payable.
            This is the second period.
            Calculate the increase in the transfer amount for each full financial year of the second period using the formula:

            where:
            increased amount is the amount identified in step 1, added to:

                (a) the increase in the transfer amount calculated in step 2B; and
                (b) any increases in the transfer amount calculated under this step for earlier financial years in the second period.

            rate is the Treasury bond rate for the financial year for which the calculation is being made.
            Round the amount to 2 decimal places (rounding up if the third decimal place is 5 or more).
           Step 2D. Final period (if any)
            Use this step if:

                (a) there is any period between the end of a financial year and when the associate deferred pension becomes payable; and
                (b) neither step 2B nor step 2C covers that period.

            This is the final period.
            Calculate the increase in the transfer amount for the final period using the formula:

            where:
            increased amount is the amount identified in step 1, added to:

                (a) the increase in the transfer amount calculated in step 2B; and
                (b) the increases in the transfer amount calculated in step 2C for each financial year in the second period.

            rate is the Treasury bond rate for the financial year in which the final period occurs.
            time is the number of days