Step 1

Identify the transfer amount in relation to the non-member spouse.
Note
Subsection 146MB (3) of the Act requires the rate of associate additional pension to be calculated by reference to the transfer amount.

Step 2

Subtract the amount worked out in step 3 in subsection 2.05 (2) from the transfer amount.

Step 3

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 2 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 2 in Schedule 2 that would apply, at the operative time, if the non-member spouse's gender and age in completed years were one year more than they are at the operative time (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 additional pension does not include a reversionary component.

Step 4

Divide the amount worked out in step 2 by the pension factor worked out in step 3.
The result is the annual rate of the associate additional pension.