Document ID: chunk:federal_register_of_legislation:F2011C00487:front:0:p12
Version: federal_register_of_legislation:F2011C00487
Segment Type: other
Provision Reference: 
Character Range: 27422–29986

an invalidity pension; or
 (b) a spouse's pension that became payable on the death of an eligible employee; or
 (c) a spouse's pension that became payable on the death of a pensioner to whom invalidity pension was payable.

Note   Section 2.13 explains how to reduce the amount of these pensions.

 (3) The amount to which an annual rate of standard pension payable in respect of an original interest is to be reduced is calculated as follows:

Step 1  Identify the annual rate of standard pension that was payable in relation to the member spouse immediately before the operative time.
Step 2  If that annual rate of standard pension takes account of the existence of 1 or more eligible children or partially dependent children, deduct the part of the annual rate that takes account of the existence of the children.
Step 3  Work out a pension factor (F y+m) based on the member spouse's gender, age and kind of standard pension, using the formula:

        where:

        Fy is the valuation factor mentioned in Table 1 in Schedule 3 applicable, at the operative time, to the member spouse's gender, age in completed years (represented by y) and kind of pension.
        Fy+1 is the valuation factor mentioned in Table 1 in Schedule 3 that would apply for the kind of pension, at the operative time, if the member spouse's gender and age in completed years were one year more than they are at the operative time (represented by y + 1).

        m is the number of completed months of the member spouse's age, at the operative time, that are not included in the member spouse's age in completed years.
Step 4  Multiply the annual rate of standard pension (or the rate worked out under step 2, if applicable) by the pension factor worked out in step 3.
Step 5  Subtract the amount worked out in step 3 in subsection 2.05 (2).
Step 6  Divide the amount worked out in step 5 by the pension factor worked out in step 3.
Step 7  If step 2 applies, increase the rate worked out in step 6 by the part of the rate that was deducted under step 2.

        The result is the annual rate of the standard pension payable after the operative time in respect of the original interest.

 (4) However, if it is not possible to reduce the annual rate of standard pension using subsection (3), the reduction of the annual rate of standard pension is to be calculated by an actuary appointed by CSC for this section.

2.13 Reduction of standard pension to which section 2.12 does not apply

 (1) For subsection 146MG (1) of the Act, this section applies if:
 (a) standard pension