Document ID: chunk:federal_register_of_legislation:F2024C00321:reg:55:p82
Version: federal_register_of_legislation:F2024C00321
Segment Type: reg
Provision Reference: reg 55 (pt 82/83)
Character Range: 612047–614652

unfunded component of the later separation amount.

Division 6

Operative time during payment phase — reduction of pension
16.6.1 If, at the operative time, standard pension is payable in respect of the original interest, the annual rate of that pension is reduced as follows:
         (a) work through each step in the order set out below:

Step 1  Identify the annual rate of standard pension that was payable in relation to the member spouse immediately before the operative time.
Step 2  If that annual rate of standard pension takes account of the existence of 1 or more eligible children or partially dependent children, deduct the part of the annual rate that takes account of the existence of those children.
Step 3  Work out a pension factor (F y+m) based on the member spouse's gender, age and kind of standard pension, using the formula:
        where
        Fy is the valuation factor mentioned in Table 4 of Division 7 applicable, at the operative time, to the member spouse's gender and age in completed years;
        m is the number of completed months of the member spouse's age, at the operative time, that are not included in the member spouse's age in completed years; and
        FY + 1 is the valuation factor mentioned in Table 4 of Division 7 that would apply if the person's age in completed years at the operative time were 1 year more than it is.
Step 4  Multiply the annual rate of standard pension by the pension factor worked out in step 3.
Step 5  Subtract the separation amount from the amount worked out in step 4.
Step 6  Divide the amount worked out in step 5 by the pension factor worked out in step 3.
Step 7  If step 2 applies, increase the rate worked out in step 6 by the part of the rate that was deducted under step 2.
        The result is the annual rate of the standard pension payable after the operative time in respect of the original interest.

         (b) however, if it is not possible to calculate the annual rate of standard pension using paragraph (a), the annual rate of standard pension payable to a member spouse is to be calculated by an actuary appointed by CSC for this rule.
16.6.2 A reduction under this Division 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 pension payable in respect of a child of the member spouse after the member spouse's
  death where there is no pension payable to an eligible spouse (See Part 9).

Division 6A
16.6A.1 If a non‑member spouse is entitled to receive benefits