Document ID: chunk:federal_register_of_legislation:C2004A01292:clause:1_146me:p2
Version: federal_register_of_legislation:C2004A01292
Segment Type: clause
Provision Reference: sch 1 cl 146ME (pt 2/2)
Character Range: 62104–64390

a factor (the interim factor) for the next split (the current split), using the formula:

  where:
  unreduced current factor means the number calculated using the steps in paragraphs (a) and (b) of the definition of reduction factor in subsection (6);
 (c) calculate a factor for each remaining split (if any), using the formula in paragraph (b);
 (d) add together the factors calculated under paragraphs (a) to (c).

Reduction not to affect later non‑standard pension

 (5) A reduction under subsection (3) is to be disregarded in calculating the amount of any non‑standard pension that later becomes payable.

Note: For example, the reduction will be disregarded in calculating the amount of orphan pension payable in respect of a child of the member spouse after the member spouse's death.

 (6) In this section:

age factor means:
 (a) if the age in full years is 65 or more—1; or
 (b) if the age in full years is less than 65—1 reduced by 0.02 per year from 64 years to 60 years, and then by 0.03 per year from 59 years to 31 years.

final salary amount means the number of whole dollars in the member spouse's final annual rate of salary.

original pension amount means the number of whole dollars in the original pension.

reduction factor means the number worked out as follows:
 (a) calculate a number (the service factor), by reference to the member spouse's period of contributory service before the operative time, by adding:
 (i) for service that occurred within the first 20 years:
 (A) 0.02 for each full year; and
 (B) 0.02/365 for each left‑over day; and
 (ii) for service that occurred within the next 10 years:
 (A) 0.01 for each full year; and
 (B) 0.01/365 for each left‑over day; and
 (iii) for service that occurred within the next 10 years:
 (A) 0.0025 for each full year; and
 (B) 0.0025/365 for each left‑over day;
 (b) if the original pension is age retirement pension or early retirement pension, multiply the service factor by the age factor (based on the member spouse's age in full years at the time when the original pension became payable);
 (c) multiply the number worked out under paragraphs (a) and (b) by the transfer factor.

salary‑based pension means a pension that is calculated by reference to the member spouse's final annual rate of salary.