Document ID: chunk:federal_register_of_legislation:F2022C00514:schedule:5
Version: federal_register_of_legislation:F2022C00514
Segment Type: schedule
Provision Reference: sch 5
Character Range: 245849–247447

Schedule 5—Calculation of rate of pension by conversion of employer benefit
(rule 65)

 1. For the purpose of converting an employer benefit into a pension, the annual rate of that pension is calculated by dividing the amount of the benefit that is to be so converted by:
 (a) if the person's age, in years, on the day on which he or she becomes entitled to the benefit is 65 years—a factor of 10; or
 (b) in any other case where the person's age is an exact number of years—a factor of 10 increased by 0.2 in respect of each year by which the person's age, in years, on the day on which he or she becomes entitled to the benefit is less than 65 years; or
 (c) in any case where the person's age is not an exact number of years—the factor that would be applicable if paragraph (b) applied to the person's age in years, reduced by a number in respect of the number of days in the person's age in excess of the person's age in years (in this paragraph called excess days), being a number which bears to 0.2 the same proportion as the number of excess days bears to the number of days in a year.
 2. In the application of item 1 in relation to a person who is entitled to invalidity benefits and is:
 (a) classified as Class A; or
 (b) classified as Class B and entitled to a pension calculated at the rate set out in subparagraph 28(1)(b)(i);
the references in that paragraph to the person's age on the day on which he or she becomes entitled to invalidity benefits are read as references to the greater of his or her retiring age immediately before his or her retirement and the age of 55 years.