Document ID: chunk:federal_register_of_legislation:F2023C01077:front:0:p11
Version: federal_register_of_legislation:F2023C01077
Segment Type: other
Provision Reference: 
Character Range: 25034–27766

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 in respect of an original interest is to be reduced is calculated as follows:

Step 1  Identify the annual rate of associate deferred annuity that would have been 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:
           (a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 3, applicable, when the associate deferred annuity first becomes payable, to the member spouse's gender and age in completed years (represented by y); and
           (b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 3, applicable, when the associate deferred annuity first becomes payable, 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:

           (a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 3, applicable, when the associate deferred annuity first becomes payable, 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; and
           (b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 3, applicable, when the associate deferred annuity first becomes payable, 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 the operative time.
Step 3  Multiply the annual rate of associate deferred 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 deferred 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