Document ID: chunk:federal_register_of_legislation:F2012C00542:body:0:p5
Version: federal_register_of_legislation:F2012C00542
Segment Type: other
Provision Reference: 
Character Range: 9940–12717

non‑member spouse (non-member spouse percentage).

        Example
        If, at the operative time, under the payment split the non-member spouse was entitled to 70% and the hypothetical percentage entitlement of the member spouse was 25%, the non-member spouse percentage is:

         = 17.5%
Step 4  Subtract the non-member spouse percentage from the pre-split retirement percentage.
Step 5  Multiply the percentage derived from step 4 by the member spouse's salary on retirement.

  The result is the annual rate of the standard pension payable to the member spouse.

2.07 Reduction of later lump sum amount

 (1) For subsection 49D (3) of the Act, this section applies to a lump sum in respect of an original interest if the lump sum becomes payable to a member spouse at a time after the operative time.

Note   This section applies to a lump sum that becomes payable to a DFRDB Scheme member at a time after the family law superannuation splitting process. At the time of the family law superannuation splitting process, the member's benefit was in the growth phase because the member was still serving or had a deferred benefit.

 (2) The amount to which the lump sum payable to the member spouse after the operative time is to be reduced is calculated as follows:

Step 1  Identify the lump sum that would have been applicable to the member spouse at retirement if there had not been a payment split (the pre‑split retirement amount).
Step 2  Identify the amount of the lump sum that would have been applicable to the member spouse immediately before the operative time, if the member spouse had been able to retire at the operative time, (using factors identified by the Actuary) (the hypothetical entitlement).
Step 3  Establish the amount of the hypothetical entitlement that relates to the non-member spouse (the non-member spouse amount).
Step 4  Subtract the non-member spouse amount from the pre-split retirement amount.

  The result is the lump sum payable to the member spouse.

2.08 Reduction of standard pension and associated reversions

  For subsection 49E (1) of the Act, 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 to the member spouse immediately before the operative time.
Step 2  Work out a reduction factor using the formula

Step 3  Multiply the amount identified in step 1 by the reduction factor.

        If the 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