Document ID: chunk:federal_register_of_legislation:C2024C00465:section:24:p1
Version: federal_register_of_legislation:C2024C00465
Segment Type: section
Provision Reference: s 24 (pt 1/3)
Character Range: 50824–53397

24  Commutation of retirement pay
 (1) A person who is, or is about to become, entitled to retirement pay may, by notice in writing given to CSC, elect to commute a portion of his or her retirement pay in accordance with this section.
 (1AA) A notice under subsection (1) shall be given not earlier than 3 months before becoming entitled to retirement pay and not later than one year after becoming so entitled or such further period as CSC, in special circumstances, allows.
 (1A) Subsection (1) does not apply to a person who, after the commencement of this subsection, became a person to whom section 62 applied and is not excluded, under subsection (1B), from the operation of this subsection.
 (1B) A person who, after the commencement of this subsection, becomes, or is about to become, entitled to retirement pay is excluded from the operation of subsection (1A) if:
 (a) the person was a former recipient member whose invalidity pay was cancelled under section 62 on the person again becoming an eligible member of the Defence Force; and
 (b) the person reached, or will reach, immediately before retirement, the retiring age for the rank then held by him or her or the person's total period of effective service is not, or will not be, less than 20 years.
 (2) An election by a person under subsection (1) shall specify the amount that is to be payable to him by virtue of the commutation.
 (2A) The amount specified in an election by a person under subsection (1) shall not be an amount that, together with:
 (a) any amount or amounts specified in any previous election or elections by the person, under this section or section 32A of this Act, to commute a portion or portions of his or her retirement pay or invalidity pay, as the case may be; and
 (b) any amount paid to the person as a result of an application, under section 74 of the previous Act, to commute a portion of any pension payable to him or her under that Act reduced by any amount or amounts required, under subsection 69(1B) or 69(3A) of the previous Act, to be paid by the person to the Defence Forces Retirement Benefits Fund established under the previous Act, in respect of that commutation;
exceeds the amount per annum of the retirement pay to which the person was or will be entitled on retirement multiplied by the maximum commutation factor.
Note: This amount is reduced if a release authority lump sum has been paid: see section 49M.
 (2B) For the purposes of subsection (2A), the maximum commutation factor is the number calculated in accordance with the formula:

where A is:
 (a)