Document ID: chunk:federal_register_of_legislation:F2024C00321:reg:55:p79
Version: federal_register_of_legislation:F2024C00321
Segment Type: reg
Provision Reference: reg 55 (pt 79/83)
Character Range: 604253–607087

annual rate of associate preserved pension payable to an associate is to be calculated by an actuary appointed by CSC for this rule.

Benefit options — terminal medical condition or incapacity
16.3.6 An associate whose associate preserved benefit has become payable under Rule 16.3.2 on the date CSC decides the benefit is payable on grounds of a terminal medical condition or a physical or mental incapacity may choose:
         (a) to take his/her associate preserved benefit:

             (i) entirely as a associate preserved pension; or

             (ii) as part associate preserved pension, provided that the associate preserved benefit includes all of the funded component, by converting at least all of the unfunded component into associate preserved pension, and the balance paid as a lump sum; or

         (b) to be paid his/her associate preserved benefit as a lump sum.
16.3.7 The amount of associate preserved pension is calculated as follows:
         (a) work through each step in the order set out below:
Step 1  Identify the amount, if any, of the associate preserved benefit to be converted to associate preserved pension.
        Note   This is the full amount as provided for by subparagraph 16.3.6(a)(i) or the part described in subparagraph 16.3.6(a)(ii).
Step 2  Work out a pension factor (F y+m) based on the associate's gender and age, using the formula:

        where
        Fy is:
        the valuation factor mentioned in Table 3 of Division 7, applicable, when the pension first becomes payable, to the associate's gender and age in completed years;
        m is the number of completed months of the associate's age, when the pension first becomes payable, that are not included in the associate's age in completed years; and
        FY + 1 is the valuation factor mentioned in Table 3 of Division 7 that would apply if the person's age in completed years at the operative time were 1 year more than it is.
        Note   The associate preserved pension does not include a reversionary component.

Step 3  Divide the amount identified in step 1 by the pension factor worked out in step 2.

        The result is the annual rate of the associate preserved pension.

         (b) however, if it is not possible to calculate the annual rate of associate preserved pension using paragraph (a), the annual rate of associate preserved pension payable to an associate is to be calculated by an actuary appointed by CSC for this rule.

Payment of lump sum on death of a non‑member spouse
16.3.8 If the associate dies before his/her associate preserved benefit becomes payable, CSC must pay the benefit as a lump sum to his/her legal personal representative or, if no legal personal representative can be found, to any individual or individuals that CSC determines.

Payment of lump sum — departed temporary