Document ID: chunk:federal_register_of_legislation:F2012C00542:body:0:p8
Version: federal_register_of_legislation:F2012C00542
Segment Type: other
Provision Reference: 
Character Range: 17657–20563

(1A) of the Act, the amount to which an annual rate of a later reversionary pension is to be reduced is worked as follows:

Step 1  Identify:
         (a) the annual rate of the reversionary pension that would have been payable to a surviving spouse at the date of commencement of the later standard pension if there had not been a family law split (the unreduced reversionary pension); and
         (b) the indexed and non‑indexed components of the unreduced reversionary pension.
Step 2  Identify:
         (a) the annual rate of the reversionary pension that would have been payable to a surviving spouse if the member spouse had died immediately before the operative time (the pre‑split reversionary pension); and
         (b) the indexed and non‑indexed components of the pre‑split reversionary pension.
Step 3  Work out the annual rate of reversionary pension that would have been payable in respect of the original interest to a surviving spouse of the member spouse had died immediately after the operative time (the post‑split reversionary pension) by multiplying the pre‑split reversionary pension by the reduction factor calculated in step 3 in subsection (1).
        Work out the indexed and non‑indexed components of the post‑split reversionary pension. They are in the same proportion to the post‑split reversionary pension as they were to the pre‑split reversionary pension.
Step 4  Work out the reduction in the reversionary pension at the operative time (the reduction in reversionary pension) by subtracting the post‑split reversionary pension from the pre‑split reversionary pension.
        Work out the corresponding reductions in the indexed and non‑indexed components of the reversionary pension at the operative time by subtracting the post‑split pension components in step 3 from the pre‑split pension components in step 2.
Step 5  Work out the increase in the indexed component of the reduction in reversionary pension for indexation during the period between the operative time and the date of commencement of the later standard pension by multiplying the indexation factor calculated in step 6 (a) in subsection (1) by the indexed component of the reduction in reversionary pension from step 4.
Step 6  Work out the annual rate of the standard reversionary pension that would be payable to a surviving spouse if the member spouse were to have died at the date of commencement of the later standard pension (the current reversionary pension) by subtracting the following amounts from the unreduced reversionary pension:
         (a) the current value of the indexed component of the reduction in reversionary pension from step 5;
         (b) the non‑indexed component of the reduction in reversionary pension from step 4.
Step 7  Work out the annual rate of the non‑indexed component of the current reversionary pension that would be payable to a surviving spouse if the member