Document ID: chunk:federal_register_of_legislation:F2025L00281:reg:10:p1
Version: federal_register_of_legislation:F2025L00281
Segment Type: reg
Provision Reference: reg 10 (pt 1/2)
Character Range: 56774–66702

10    An interest that a person has in the CSS if he or she is entitled to associate deferred benefits under subsection 146MB (4) of the 1976 Act.                                         FLS + UFLS
                                                                                                                                                                                           where:
                                                                                                                                                                                           FLS is:
                                                                                                                                                                                            (a) the sum of the funded component of the transfer amount and interest determined under section 154A of the 1976 Act, as if the benefits had become payable at the relevant date; or
                                                                                                                                                                                            (b) if section 146MB of the 1976 Act applies to the interest — the amount calculated under paragraph (a), less the sum of any reductions that apply for the purposes of section 146MF of the 1976 Act, as if the benefits had become payable at the relevant date.
                                                                                                                                                                                           UFLS is:
                                                                                                                                                                                            (a) the lump sum value of the unfunded component of the transfer amount, as increased in accordance with the method set out below, as if the benefits had become payable at the relevant date; or
                                                                                                                                                                                            (b) if section 146MB of the 1976 Act applies to the interest — the amount calculated under paragraph (a), less the sum of any reductions that apply for the purposes of section 146MF of the 1976 Act, as if the benefits had become payable at the relevant date.
                                                                                                                                                                                           Method for increasing unfunded component of transfer amount
                                                                                                                                                                                           Step 1                                                                                                                                                                                                                                                                                                                                                      Increase the unfunded component in relation to the transfer amount for any period between the operative time (being the operative time in relation to the splitting agreement or splitting order as a result of which the person has the entitlement under subsection 146MB (4) of the 1976 Act) and the relevant date, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Note   The period between the operative time and the relevant date may include a number of full financial years, or may occur entirely within a single financial year.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Treasury bond rate for bonds with a 10 year term
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Calculation of increase in unfunded component of transfer amount
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The increase in the unfunded component is calculated:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (a) at the end of each financial year that occurs between the operative time and the relevant date; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) immediately before the relevant date;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       using the applicable Treasury bond rate for