Document ID: chunk:federal_register_of_legislation:F2023C01077:front:0:p5
Version: federal_register_of_legislation:F2023C01077
Segment Type: other
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Character Range: 10129–12928

is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member's retiring allowance and the member's parliamentary allowance. This is also relevant to the non-member spouse's associate immediate annuity.

 (3) However, if it is not possible to calculate the annual rate of associate immediate annuity using subsection (2), the annual rate of associate immediate annuity payable to a non-member spouse to whom subsection 22CD (2) of the Act applies is to be calculated by an actuary appointed by the Secretary for this section.

2.03 Annual rate of associate deferred annuity

 (1) For subsection 22CE (1) of the Act, the annual rate at which an associate deferred annuity is to be paid is calculated as follows:

Step 1   Identify the transfer amount at the operative time.
Step 2A  Increase the transfer amount for any period between the operative time and the time at which the associate deferred annuity first becomes payable, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.

         Note   The period between the operative time and the time at which the associate deferred annuity first becomes payable may include a number of full financial years, or may occur entirely within a single financial year.

         Treasury bond rate for bonds with a 10 year term

         The Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:
            (a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or
            (b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.
         Calculation of increase in transfer amount

         The increase in the transfer amount is calculated:
            (a) at the end of each financial year that occurs between the operative time and the time at which the associate deferred annuity first becomes payable; and
            (b) immediately before the associate deferred annuity first becomes payable;

         using the applicable Treasury bond rate for the relevant period worked out in steps 2B, 2C and 2D, and compounded period by period.
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 the time at which the associate deferred annuity first becomes payable.

         This is the first period.

         Multiply the number of days in the first period by the Treasury bond rate for bonds