Document ID: chunk:federal_register_of_legislation:F2005B01230:body:0:p3
Version: federal_register_of_legislation:F2005B01230
Segment Type: other
Provision Reference: 
Character Range: 5640–8649

makes an election under Rule 15.1.1 in relation to a pension, the person is entitled to a lump sum benefit equal to the Surcharge Commutation Amount.

     15.1.5 If a person is entitled to a lump sum benefit under Rule 15.1.4, the liability to pay that benefit must be discharged by:

              (a) paying the amount of that benefit to the Commissioner of Taxation in accordance with the person's request; and

              (b) informing the Commissioner of Taxation of the person's request that the amount be wholly applied in payment of surcharge under the assessment concerned.

 Reduction of pension

     15.1.6 If a person makes an election under Rule 15.1.1 in relation to a pension, the annual rate of the pension is to be reduced, with effect from the beginning of the day of the election, so that it equals the amount worked out using the following formula:

     Pre – commutation  Surcharge Commutation Amount
     Election Pension Rate   Conversion Factor

     where:

                       Conversion Factor means the factor that is applicable to the person under the determination made by the Board under Rule 15.1.9.

                       Pre-commutation means the annual rate at which the pension was payable to
                       Election Pension Rate the person immediately before the election was made.

 One election per assessment

     15.1.7 A person is not entitled to make more than one election under Rule 15.1.1 in relation to a particular assessment.

 Elections made before the first pension payday in a financial year

     15.1.8 If an election under Rule 15.1.1 is made during the period:

              (a) beginning at the start of a financial year; and

              (b) ending at the end of the first pension payday in that year;

     this Division has effect as if the election had been made on the first day after that pension payday.

 Conversion factor in relation to Surcharge Commutation Amount

     15.1.9 The Board must, in accordance with advice received from an actuary, determine in writing, in relation to persons who are pensioners, the conversion factor that, having regard to:

              (a) a person's age when he or she makes an election under Rule 15.1.1; and

              (b) other relevant factors (if any);

     is applicable for the purpose of working out, in relation to the person, the yearly amount that would have to be paid to discharge a liability equal to the person's Surcharge Commutation Amount.

Commutation of spouse's pension

Division 2

 Election

     15.2.1 If:

              (a) a person (the Deceased Person) dies and:

                   (i) the Deceased Person was a member; or

                   (ii) the Deceased Person was a pensioner; and

              (b) the Deceased Person is survived by a spouse; and

              (c) the spouse is entitled to a pension; and

              (d) an assessment is made of the surcharge on the Deceased Person's surchargeable contributions for a