Document ID: chunk:federal_register_of_legislation:C2004A05281:clause:3_10:p1
Version: federal_register_of_legislation:C2004A05281
Segment Type: clause
Provision Reference: sch 3 cl 10 (pt 1/2)
Character Range: 30340–33026

10  After subsection 18(8)
Insert:
 (8A) If:
 (a) a person's surcharge debt account is in debit when a benefit becomes payable to the person; and
 (b) apart from this subsection, the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);
then, instead of the retiring allowance referred to in paragraph (b), the person is entitled to a retiring allowance during his or her life‑time at a rate equal to such percentage of the rate of parliamentary allowance for the time being payable to a member as is worked out by using the formula:
where:
basic rate means the rate at which, when the retiring allowance becomes payable to the person, that retiring allowance would be payable to the person under this section if this subsection did not apply to him or her.
percentage means:
 (a) if, apart from this subsection, the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a)—the percentage of the rate of parliamentary allowance by reference to which the rate of that retiring allowance would be ascertained (see subsection (6) and, if applicable, subsections (7) and (8)); or
 (b) if, apart from this subsection, the person would be entitled to a retiring allowance under paragraph (2AA)(b), (c) or (d)—the percentage of the rate of parliamentary allowance specified in that paragraph.
surcharge adjustment means:
 (a) if paragraph (b) does not apply to the person—the amount obtained by dividing the person's surcharge deduction amount by the conversion factor applicable to the person under the determination made by the Trust under section 22A; or
 (b) if the person has ceased to hold office as a member on more than one occasion—the amount obtained by:
 (i) dividing the person's surcharge deduction amount on the last of those occasions by the conversion factor applicable to the person under the determination made by the Trust under section 22A; and
 (ii) adding to the result obtained under subparagraph (i) the surcharge adjustment in respect of the person on the immediately preceding occasion on which the person ceased to hold office as a member.
 (8B) If:
 (a) a person's surcharge debt account is in debit when a benefit becomes payable to the person; and
 (b) apart from this subsection, the person would be entitled to a benefit under paragraph (2)(b) or (2AA)(e) or subsection (4);
then, instead of the benefit referred to in paragraph (b), the amount of the benefit to which the person is entitled is an amount equal to the difference between:
 (c) the amount that would be payable to the person under this section if this