Document ID: chunk:federal_register_of_legislation:F2011C00487:front:0:p13
Version: federal_register_of_legislation:F2011C00487
Segment Type: other
Provision Reference: 
Character Range: 29754–32414

is to be calculated by an actuary appointed by CSC for this section.

2.13 Reduction of standard pension to which section 2.12 does not apply

 (1) For subsection 146MG (1) of the Act, this section applies if:
 (a) standard pension is payable to a member spouse in respect of an original interest; and
 (b) the standard pension is:
 (i) an invalidity pension; or
 (ii) a spouse's pension that became payable on the death of an eligible employee; or
 (iii) a spouse's pension that became payable on the death of a pensioner to whom invalidity pension was payable.

 (2) The amount to which the annual rate of standard pension payable in respect of an original interest is to be reduced is calculated using subsections (3) to (7).

 (3) Work out 2 portions of the transfer amount in relation to the non‑member spouse as follows:

Step 1  Identify the transfer amount in relation to the non‑member spouse.

        Note   Subsection 146MB (2) of the Act requires the rate of associate standard pension to be calculated by reference to the unfunded amount.
Step 2  Work out a factor representing the proportion of the transfer amount that related to the payment of the part of the person's standard pension (the indexed component) that is subject to indexation in accordance with the consumer price index at the operative time.

        Disregard any reduction or suspension under section 73A of the Act.

        If the family law value of the original interest is less than the scheme value of the original interest, the factor will be the portion of the scheme value of the original interest relating to the indexed component. In other cases, the factor will be the portion of the family law value of the original interest relating to the indexed component.
Step 3  Multiply the transfer amount by the factor worked out in step 2.

        The result is the portion of the transfer amount arising from the indexed component.
Step 4  Subtract the amount worked out in step 3 from the transfer amount.

        The result is the portion of the transfer amount arising from the payment of the part of the standard pension in respect of the original interest that is fixed in nominal dollars (the fixed component).

 (4) The amount worked out in step 3 in subsection (3) is then to be used as part of the following calculation:

Step 1  Work out a pension factor (F y+m) based on the member spouse's gender, age and kind of standard pension, using the formula:

        where:

        Fy is the valuation factor mentioned in Table 1 in Schedule 3 applicable, at the operative time, to the member spouse's gender, age in completed years (represented by y) and kind