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SUPERANNUATION (FAMILY LAW — SUPERANNUATION ACT 1976) ORDERS 2004 2004 No. 86 - REG 2.05

Annual rate of associate standard pension
(1)
For subsection 146MB (2) of the Act, this section applies if standard pension is payable in respect of an original interest, whether or not additional pension is also payable in respect of the original interest.

Note
If additional pension is payable in respect of the original interest, section 2.06 explains how to calculate associate additional pension.

(2)
The annual rate of associate standard pension payable to a non-member spouse to whom subsection 146MB (2) of the Act applies is calculated as follows:


Step 1


Identify the transfer amount in relation to the non-member spouse.
Note
Subsection 146MB (2) of the Act requires the rate of associate standard pension to be calculated by reference to the transfer amount.


Step 2


Work out a factor representing the proportion of the transfer amount that related to the payment of standard pension immediately before the operative time.
If the family law value of the original interest is less than the scheme value of the original interest, the factor will be the portion of the scheme value of the original interest relating to the standard pension. In other cases, the factor will be the portion of the family law value of the original interest relating to the standard pension.


Step 3


Multiply the transfer amount by the factor identified in step 2.


Step 4


Work out a pension factor ( F y+m ) based on the non-member spouse's gender and age, using the formula:

where:
F y is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non-member spouse's gender and age in completed years (represented by y ).



F y+1 is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non-member spouse's gender and age in completed years plus 1 (represented by y + 1 ).



m is the number of completed months of the non-member spouse's age, at the operative time, that are not included in the non-member spouse's age in completed years.
Note
The associate standard pension does not include a reversionary component.


Step 5


Divide the amount worked out in step 3 by the pension factor worked out in step 4.
The result is the annual rate of the associate standard pension.


(3) However, if it is not possible to calculate the annual rate of associate standard pension using subsection (2), the annual rate of associate standard pension payable to a non-member spouse to whom subsection 146MB (2) of the Act applies is to be calculated by an actuary appointed by the Board for this section.


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