Document ID: chunk:federal_register_of_legislation:C2018C00341:clause:1_17ae
Version: federal_register_of_legislation:C2018C00341
Segment Type: clause
Provision Reference: sch 1 cl 17AE
Character Range: 19946–21329

17AE  Reduction of retirement pension etc. if original interest has been split more than once
 (1) If:
 (a) section 17AD applies in relation to an original interest; and
 (b) before the retirement pension or spouse pension referred to in that section becomes payable, the original interest has been split more than once because section 17AA has previously applied;
the formula in subsection 17AD(5) is modified as set out in subsection (2) of this section.
 (2) In applying the formula in subsection 17AD(5), the component (APF  Transfer factor) is to be replaced by the number worked out using the following method statement, based on the chronological order of the operative times (starting with the earliest):

      Method statement
           Step 1. Work out a factor (the interim factor) for the first split using the formula:

           Step 2. Work out a factor (the interim factor) for the next split (the current split), using the formula:

           Step 3. Work out a factor for each remaining split (if any), using the formula in step 2.
           Step 4. Add together the factors worked out under steps 1 to 3.
Example: Assume 2 splits, with the first split having an APF of 0.4 and a transfer factor of 0.5 and the second split having an APF of 0.6 and a transfer factor of 0.5. Applying the above steps, the replacement number for the formula is 0.4, that is: