Document ID: chunk:federal_register_of_legislation:F2011C00487:front:0:p5
Version: federal_register_of_legislation:F2011C00487
Segment Type: other
Provision Reference: 
Character Range: 10027–12808

amount as part of calculating the transfer factor; and
 (b) subtracting from that scheme value the amount of the member spouse's surcharge debt shown in the statement; and
 (c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
 (d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.

2.05 Annual rate of associate standard pension

 (1) For subsection 146MB (2) of the Act, this section applies if standard pension is payable in respect of an original interest, whether or not additional pension is also payable in respect of the original interest.

Note   If additional pension is payable in respect of the original interest, section 2.06 explains how to calculate associate additional pension.

 (2) The annual rate of associate standard pension payable to a non‑member spouse to whom subsection 146MB (2) of the Act applies is calculated 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 transfer amount.
Step 2  Work out a factor representing the proportion of the transfer amount that related to the payment of standard pension immediately before the operative time.

        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 standard pension. In other cases, the factor will be the portion of the family law value of the original interest relating to the standard pension.
Step 3  Multiply the transfer amount by the factor identified in step 2.
Step 4  Work out a pension factor (F y+m) based on the non‑member spouse's gender and age, using the formula:

        where:

        Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse's gender and age in completed years (represented by y).
        Fy+1 is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse's gender and age in completed years plus 1 (represented by y + 1).
        m is the number of completed months of the non‑member spouse's age, at the operative time, that are not included in the non‑member spouse's age in completed years.

        Note   The associate standard pension does not include a reversionary component.
Step 5  Divide the amount worked out in step 3 by the pension factor worked out in step 4.

        The result is the annual rate of the associate standard pension.

 (3) However, if it is not possible