Document ID: chunk:federal_register_of_legislation:F2024C00321:reg:55:p78
Version: federal_register_of_legislation:F2024C00321
Segment Type: reg
Provision Reference: reg 55 (pt 78/83)
Character Range: 601674–604510

the associate reaches age 55.

Benefit options — on reaching certain ages
16.3.4 This rule applies to an associate whose associate preserved benefit has become payable on a date mentioned in paragraph 16.3.2(d) or (e).  The associate may choose:
         (a) to be paid a lump sum of that part of his/her associate preserved benefit that the SIS Act permits to be paid in cash, or a lump sum of less than that amount, and:

             (i) roll‑over the balance of his/her associate preserved benefit; or

             (ii) if the balance is 50% or more of his/her associate preserved benefit and the associate preserved benefit includes all of the funded component, convert the balance into an associate preserved pension, provided that the payment of the associate preserved pension is permitted by the SIS Act; or

         (b) to take his/her associate preserved benefit as an associate preserved pension provided that the associate preserved benefit includes all of the funded component and the payment of the associate preserved pension is permitted by the SIS Act; or
         (c) to roll‑over his/her associate preserved benefit.
16.3.5 The amount of associate preserved pension is calculated as follows:
         (a) work through each step in the order set out below:

Step 1  Identify the amount, if any, of the associate preserved benefit to be converted to associate preserved pension.
        Note   This is the balance described in subparagraph 16.3.4(a)(ii) or the full amount as provided for by paragraph 16.3.4(b).
Step 2  Work out a pension factor (F y+m) based on the associate's gender and age, using the formula:
        where
        Fy is:
        the valuation factor mentioned in Table 2 of Division 7, applicable, when the pension first becomes payable, to the associate's gender and age in completed years;
        m is the number of completed months of the associate's age, when the pension first becomes payable, that are not included in the associate's age in completed years; and
        FY + 1 is the valuation factor mentioned in Table 2 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.
        Note   The associate preserved pension does not include a reversionary component.
Step 3  Divide the amount identified in step 1, by the pension factor worked out in step 2.
        The result is the annual rate of the associate preserved pension.

         (b) however, if it is not possible to calculate the annual rate of associate preserved pension using paragraph (a), the annual rate of associate preserved pension payable to an associate is to be calculated by an actuary appointed by CSC for this rule.

Benefit options — terminal medical condition or incapacity
16.3.6 An associate whose associate preserved benefit has become