Document ID: chunk:federal_register_of_legislation:F2005C00024:body:0:p2
Version: federal_register_of_legislation:F2005C00024
Segment Type: other
Provision Reference: 
Character Range: 2610–5402

the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse.

2.02 Annual rate of associate pension

  For subsection 80B (2) of the Act, the annual rate of associate pension payable to a non-member spouse to whom that subsection applies is calculated as follows:

Step 1  Identify the transfer amount in relation to the non-member spouse.

        Note   Subsection 80B (2) of the Act requires the rate of associate pension to be calculated by reference to the transfer amount.

Step 2  Identify a pension factor, nominated by an actuary for these Orders, based on the non‑member spouse's age and gender.

        Note   Schedule 4 to the FLS Regulations sets out general pension factors based on age and gender, but those factors are not specific to benefits payable under the Act.
Step 3  Divide the transfer amount by the pension factor worked out in step 2.

  The result is the annual rate of the associate pension.

Note   The associate pension does not include a reversionary component.

2.03 Indexation of associate pension

 (1) This section applies if the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of the half‑year immediately preceding a prescribed half-year (the CPI index number) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the first quarter of any earlier half-year.

 (2) A person to whom an associate pension was payable immediately before the commencement of the prescribed half‑year is entitled, at the commencement of the prescribed half‑year, to an increase in the rate at which the associate pension was payable to him or her immediately before the commencement of the prescribed half-year (the relevant rate of associate pension).

 (3) The increase is the prescribed percentage, worked out in accordance with subsection (4), of the relevant rate of associate pension.

 (4) To work out the prescribed percentage for a prescribed half‑year:
 (a) from the CPI index number subtract the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician for the first quarter of any half‑year earlier than the half-year immediately preceding the prescribed half‑year; and
 (b) express the result as a percentage of the highest all groups consumer price index number in paragraph (a).

 (5) If:
 (a) a person to whom an associate pension is payable would be entitled to an increase in the rate at which the associate pension was payable to him or her immediately before the commencement of the prescribed half-year;