Document ID: chunk:federal_register_of_legislation:F2011C00487:front:0:p10
Version: federal_register_of_legislation:F2011C00487
Segment Type: other
Provision Reference: 
Character Range: 22604–25327

an amount calculated under paragraph 146MC (1) (a) of the Act and paid when the associate deferred benefits become payable.
Step 3  Increase the unfunded component of the transfer amount as if it were the lump sum amount calculated in step 2A in subsection 2.07 (1) when the associate deferred benefits become payable.
        Note   A lump sum amount is increased under section 2.07 only if there is a period between the operative time and the time at which benefits first become payable. Therefore, in a particular case, it is possible that the unfunded component of the transfer amount will not need to be increased under this step.
Step 4  Identify:
           (a) the funded component of the associate deferred benefits, as calculated under paragraph 146MC (1) (a) of the Act; and
           (b) the lump sum value of the unfunded component of the associate deferred benefits, as worked out under section 2.07;
        to the date of payment.

        Note   The lump sum value of the unfunded component of the associate deferred benefits represents the increased unfunded component of the transfer amount worked out under step 2A in subsection 2.07 (1).

        If the funded component of the associate deferred benefits has previously been reduced in accordance with these Orders, the reduction must be taken into account.
        If the unfunded component of the associate deferred benefits has previously been reduced in accordance with these Orders, the reduction must be taken into account.
Step 5  Reduce the funded component of the associate deferred benefits as identified in step 4 by the increased funded component of the transfer amount worked out at step 2.
Step 6  Reduce the lump sum value of the unfunded component of the associate deferred benefits identified in step 4 by the increased unfunded component of the transfer amount worked out at step 3.
Step 7  Substitute the reduced amount calculated under step 5 for the lump sum calculated under paragraph 146MC (1) (a) of the Act for payment under section 146MC.
Step 8  Substitute the reduced lump sum calculated in step 6 for the amount that is referred to in step 4 in subsection 2.07 (1) as 'the unfunded component in relation to the transfer amount, as increased in step 2A', for the purposes of paragraph 146MC (1) (b) of the Act.

Example for section 2.11
A member spouse has an entitlement to associate deferred benefits. The scheme value of those benefits at the operative time is $300 000. The funded component is $100 000, and the unfunded component is $200 000.
The agreement served on CSC specifies that half of the interest is to be transferred to the non‑member spouse. Therefore, the transfer amount is $150 000, of which the funded