Document ID: chunk:federal_register_of_legislation:C2004A00865:clause:1_12:p1
Version: federal_register_of_legislation:C2004A00865
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 1/2)
Character Range: 3279–5984

12  After subsection 18(8A)
Insert:
 (8AA) If:
 (a) a person's surcharge debt account is in debit at the most recent benefit start‑up time; and
 (b) apart from subsection (8A), 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);
there is taken to have arisen at the most recent benefit start‑up time a notional adjustment debit of the person equal to the amount worked out using the following formula:
where:
conversion factor means the factor applicable to the person under the determination made by the Trust under section 22A.
surcharge deduction amount means the person's surcharge deduction amount.
 (8AB) If:
 (a) at the time this subsection commences (the commencement time), a person is entitled to a retiring allowance under subsection (8A); and
 (b) that retiring allowance was calculated by reference to a particular surcharge adjustment within the meaning of that subsection as in force before the commencement time;
there is taken to have arisen at the commencement time a notional adjustment debit of the person equal to that surcharge adjustment.
 (8AC) If:
 (a) a person makes an election under subsection 18A(1) on a particular day (the election day) after the most recent benefit start‑up time; and
 (b) if the election had not been made, the person would have been entitled on the election day to a retiring allowance under subsection (1A), (1B) or (8A) or this subsection or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d);
then, on and after the election day, instead of the retiring allowance referred to in paragraph (b), the person is entitled to a retiring allowance during his or her lifetime 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 using the formula:

where:
basic rate means the rate at which, at the most recent benefit start‑up time, a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d) would have become payable to the person if this subsection and subsection (8A) did not apply to the person.
percentage means:
 (a) if, apart from this subsection and subsection (8A), the person would have been entitled at the most recent benefit start‑up time 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 and subsection (8A), the person would have been entitled