Document ID: chunk:federal_register_of_legislation:F2023C01077:front:0:p10
Version: federal_register_of_legislation:F2023C01077
Segment Type: other
Provision Reference: 
Character Range: 22614–25277

of additional retiring allowance, or the annual rate of the annuity under section 19 of the Act based on the additional retiring allowance.

Note   The reduction is to be disregarded in calculating the amount of any annuity payable under section 19AA of the Act in respect of a child of the member spouse after the member spouse's death.

 (3) If the annuity is an associate immediate annuity, the amount to which the annual rate of associate annuity payable in respect of an original interest is to be reduced is calculated as follows:

Step 1  Identify the annual rate of associate immediate annuity that was payable in relation to the member spouse immediately before the operative time.
Step 2  Work out an annuity factor (F y+m) based on the member spouse's gender and age, using the formula:

        where:

        Fy is the valuation factor mentioned in Table 1 in Schedule 3, applicable, at the operative time, to the member spouse's gender and age in completed years (represented by y).
        m is the number of completed months of the member spouse's age, when the associate deferred annuity first becomes payable, that are not included in the member spouse's age in completed years.
        Fy+1 is the valuation factor mentioned in Table 1 in Schedule 3, applicable, at the operative time, to the member spouse's gender and age in completed years if the person's age in completed years was one year more than it was at that time.
Step 3  Multiply the annual rate of associate immediate annuity by the annuity factor worked out in step 2.
Step 4  Subtract the transfer amount from the amount worked out in step 3.
Step 5  Divide the amount worked out in step 4 by the annuity factor worked out in step 2.

        The result is the annual rate of associate immediate annuity payable after the operative time in respect of the original interest.
Step 6  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 member spouse's annual rate of associate annuity.

 (4) However, if it is not possible to reduce the annual rate of associate immediate annuity using subsection (3), the reduction of the annual rate of associate immediate annuity is to be calculated by an actuary appointed by the Secretary for this section.

 (5) If the annuity is an associate deferred annuity, the amount to which the annual rate of associate deferred annuity payable