Document ID: chunk:federal_register_of_legislation:F2011C00487:front:0:p11
Version: federal_register_of_legislation:F2011C00487
Segment Type: other
Provision Reference: 
Character Range: 25100–27660

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 component is $50 000.
Step 1 identifies the components of the transfer amount to be $50 000 funded and $100 000 unfunded.
Step 2 indexes the funded component of the transfer amount to the day on which the associate deferred benefits become payable to the non‑member spouse.
The $50 000 is increased by the Fund crediting rate to $60 000.
Step 3 indexes the unfunded component of the transfer amount to the same day, assuming that indexation is required.
The $100 000 is increased as provided for under section 2.07 to $110 000.
Step 4 calculates the funded component and the lump sum value of the unfunded component of the associate deferred benefits that would become payable if there were no reduction.
The $100 000 funded value is increased by the Fund crediting rate to $120 000.
The $200 000 is increased by the Bond Rate to $220 000.
Step 5 reduces the funded component calculated at Step 4 by the amount calculated at Step 2.
The $120 000 is reduced by $60 000, leaving $60 000.
(Step 7 provides that the amount of $60 000 left after this reduction becomes payable to the member spouse under paragraph 146MC (1) (a) of the Act.)
Step 6 reduces the lump sum value of the unfunded component of the associate deferred benefits calculated at Step 4 by the amount calculated at Step 3.
The $220 000 is reduced by $110 000, leaving $110 000.
Step 8 provides that the reduced lump sum value ($110 000) is to be substituted for the amount calculated for section 2.07 to calculate the rate of pension under paragraph 146MC (1) (b) of the Act.

2.12 Reduction of standard pension — general

 (1) For subsection 146MG (1) of the Act, this section applies if standard pension is payable to a member spouse in respect of an original interest, whether or not additional pension is also payable to the member spouse in respect of the original interest.

Note   If additional pension is payable to the member spouse in respect of the original interest, section 2.14 explains how to reduce the amount of additional pension.

 (2) However, this section does not apply to a standard pension that is:
 (a) an invalidity pension; or
 (b) a spouse's pension that became payable on the death of an eligible employee; or
 (c) a spouse's pension that became payable on the death of a pensioner to whom invalidity pension was payable.

Note   Section