Document ID: chunk:federal_register_of_legislation:F2012C00542:body:0:p6
Version: federal_register_of_legislation:F2012C00542
Segment Type: other
Provision Reference: 
Character Range: 12459–15339

pension includes a non-indexed component, multiply the component by the reduction factor.

        The result is the annual rate of the standard pension payable after the operative time in respect of the original interest.
Step 4  Identify the annual rate of the indexed reversionary pension that would have been payable to a surviving spouse if the member spouse had died immediately before the operative time.
Step 5  Multiply the amount identified in Step 4 by the reduction factor.

        The result is the annual rate of indexed reversionary pension payable after the operative time in respect of the original interest.
Step 6  Identify the annual rate of the non-indexed reversionary pension that would have been payable to a surviving spouse if the member spouse had died immediately before the operative time.
Step 7  Multiply the amount identified in Step 6 by the reduction factor.

  The result is the annual rate of non-indexed reversionary pension payable after the operative time in respect of the original interest.

2.09 Reduction of later standard pensions and associated reversions not payable under section 38 of the Act

 (1) For subsection 49E (1A) of the Act, the amount to which an annual rate of a later standard pension, payable in respect of an original interest, is to be reduced is calculated as follows:

Step 1  Identify:
         (a) the annual rate of later standard pension that would have been payable to the member spouse at the date of commencement of the later standard pension had there not been a family law payment split (the unreduced standard pension); and
         (b) the indexed and non‑indexed components of the unreduced standard pension.
Step 2  Identify:
         (a) the annual rate of standard pension that was payable to the member spouse immediately before the operative time (the pre‑split standard pension); and
         (b) the indexed and non‑indexed components of the pre‑split standard pension.
Step 3  Work out a reduction factor using the formula:

Step 4  Work out the annual rate of the standard pension payable in respect of the original interest to the member spouse after the operative time (the post‑split standard pension) by multiplying the pre‑split standard pension by the reduction factor.
        The indexed and non‑indexed components of the post‑split standard pension are in the same proportion for the post‑split standard pension as they were for the pre‑split standard pension.
Step 5  Work out the reduction in the standard pension at the operative time (the reduction in standard pension) by subtracting the post‑split standard pension from the pre‑split standard pension.
        Work out the corresponding reduction in the indexed component of the standard pension at the operative time by subtracting the indexed component of the post‑split standard pension in step 4 from the indexed component