Document ID: chunk:federal_register_of_legislation:C2004A01320:clause:1_4:p1
Version: federal_register_of_legislation:C2004A01320
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/2)
Character Range: 3949–6645

4  Entitlement to a retiring allowance at a preserved percentage

 (1) This clause applies to a person if, immediately before the start of the first new scheme contribution period of the person, a retiring allowance (other than additional retiring allowance) was payable to the person under section 18.

Note: The reference in this subclause to a retiring allowance being payable to the person is affected by subclause (6).

 (2) The person is entitled, after the end of the first new scheme contribution period, to a retiring allowance (the preserved basic allowance) under this clause during his or her lifetime at the preserved basic percentage (see subclause (5)) of the rate of parliamentary allowance for the time being payable to a member.

Note 1: The reference in this subclause to the rate of parliamentary allowance for the time being payable to a member is affected by section 22T.

Note 2: Because of Division 3 of this Part, other provisions (for example, Part VA, subsection 20(3A) and sections 21 and 21B) may apply so that the preserved basic allowance is not payable to the person, or is payable at a reduced rate.

 (3) For the purpose of the reference in subclause (2) to the rate of parliamentary allowance for the time being payable to a member, any reductions of a particular member's entitlement to parliamentary allowance under Division 2 of Part 1 of Schedule 3 to the Remuneration and Allowances Act 1990 (salary sacrifice) are to be disregarded.

 (4) The person's entitlement to the preserved basic allowance is suspended for the duration of any later new scheme contribution period of the person.

 (5) The preserved basic percentage is, from the end of a new scheme contribution period of the person to the start of the next (if any) new scheme contribution period of the person, the percentage that was applied to the rate of parliamentary allowance in order to calculate the rate of retiring allowance (other than additional retiring allowance) payable to the person under section 18, or under this clause, immediately before the start of the first‑mentioned new scheme contribution period.

Note: The reference in this subclause to the rate of retiring allowance payable to the person is affected by subclause (6).

 (6) If, immediately before the start of a new scheme contribution period of the person, the person was not being paid a retiring allowance, or was being paid a reduced rate of retiring allowance, because of all or any of the following provisions:
 (a) Part VA;
 (b) subsection 20(3A);
 (c) section 21;
 (d) section 21B;
this clause applies to the person as if the person were, at that time, being paid the retiring allowance he or she would have