Document ID: chunk:federal_register_of_legislation:F2023C01077:front:0:p4
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debt shown in the statement; and
 (c) using the result of paragraph (b) to recalculate the transfer factor.

 (6) If the operative time was on or after the family law commencement day, and before the day on which this subsection commences, the transfer factor in relation to the member spouse is to be recalculated by:
         (a) identifying the scheme value that had previously been used to calculate the transfer amount as part of calculating the transfer factor; and
         (b) subtracting from that scheme value the amount of the member spouse's surcharge debt shown in the statement; and
         (c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
         (d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.

2.02 Annual rate of associate immediate annuity

 (1) For subsection 22CD (2) of the Act, this section applies if standard allowance or annuity is payable in respect of an original interest.

 (2) The annual rate of associate immediate annuity payable to a non-member spouse to whom subsection 22CD (2) of the Act applies is calculated as follows:

Step 1  Identify the transfer amount in relation to the non-member spouse.

        Note   Subsection 22CD (2) of the Act requires the rate of associate immediate annuity to be calculated by reference to the transfer amount.
Step 2  Work out an annuity factor (F y+m) based on the non-member spouse's gender and age, using the formula:

        where:

        Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non-member spouse's gender and age in completed years (represented by y).

        m is the number of completed months of the non‑member spouse's age, at the operative time, that are not included in the non-member spouse's age in completed years.

        Fy+1 is the valuation factor mentioned in Table 1 in Schedule 2 that would apply to the person if the person's age in completed years was one year more than it is at the operative time.

        Note   The associate immediate annuity does not include a reversionary component.
Step 3  Divide the transfer amount identified in step 1 by the annuity factor worked out in step 2.

        The result is the annual rate of the associate immediate annuity.
Step 4  The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased.

Note   If there 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)