Document ID: chunk:federal_register_of_legislation:F2023C01077:front:0:p9
Version: federal_register_of_legislation:F2023C01077
Segment Type: other
Provision Reference: 
Character Range: 20154–22859

000.
Step 2 increases the transfer amount to the day on which the associate deferred annuity becomes payable to the non-member spouse.
The $150 000 is increased by the bond rate to $160 000.
Step 3 calculates the lump sum value of the associate deferred annuity.
The $300 000 is increased by the bond rate to $320 000.
Step 4 reduces the lump sum value of the associate deferred annuity by the amount calculated in Step 2.
The $320 000 is reduced by $160 000, leaving $160 000.
Step 5 provides that the reduced lump sum value ($160 000) is to be substituted for the lump sum calculated in step 2A in subsection 2.03 (1) to calculate the rate of associate annuity under section 22CE of the Act.

2.08 Reduction of standard allowance or annuity

 (1) For subsection 22CJ (1) of the Act, this section applies if standard allowance or annuity is payable to a member spouse in respect of an original interest.

 (2) If the allowance is a retiring allowance (including a retiring allowance that forms the basis of an annuity to a surviving spouse under section 19 of the Act), the amount to which the annual rate of retiring allowance, or the annual rate of annuity under section 19 payable in respect of an original interest, is to be reduced is calculated as follows:

Step 1  Identify the applicable basic percentage, and each applicable additional percentage, before the operative time.
Step 2  Multiply the applicable basic percentage identified in step 1 by the transfer factor.

        Multiply each applicable additional percentage identified in step 1 by the transfer factor.
Step 3  Reduce the applicable basic percentage identified in step 1 by the percentage worked out in step 2.

        Reduce each applicable additional percentage identified in step 1 by the applicable percentage worked out in step 2.
Step 4  Apply the reduced applicable basic percentage after the operative time to the rate of parliamentary allowance.

        The result is the annual rate of retiring allowance (other than additional retiring allowance), or the annual rate of the annuity under section 19 of the Act based on the retiring allowance.
Step 5  Apply each reduced applicable additional percentage after the operative time to:
           (a) the rate of the related salary payable in respect of a Minister of State; or
           (b) the rate of the related allowance by way of salary payable in respect of an office holder.

        The result is the annual rate 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