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SUPERANNUATION (FAMILY LAW — SUPERANNUATION ACT 1976) ORDERS 2004 2004 No. 86 - REG 2.14

Reduction of additional pension
(1)
For subsection 146MG (2) of the Act, this section applies if additional pension is payable to a member spouse in respect of an original interest.

(2)
The amount to which an annual rate of additional pension payable in respect of an original interest is to be reduced is calculated as follows:


Step 1


Identify the annual rate of additional pension that was payable in relation to the member spouse immediately before the operative time.


Step 2


Work out a pension factor ( G y+m ) based on the member spouse's gender, age and kind of standard pension, using the formula:

where:
G y is the valuation factor mentioned in Table 2 in Schedule 3 applicable, at the operative time, to the member spouse's gender, age in completed years (represented by y ) and kind of pension.
G y+1 is the valuation factor mentioned in Table 2 in Schedule 3 that would apply for the kind of pension, at the operative time, if the 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 member spouse's age, at the operative time, that are not included in the member spouse's age in completed years.


Step 3


Multiply the annual rate of additional pension by the pension factor worked out in step 2.


Step 4


Subtract the amount worked out in step 2 in subsection 2.06 (2).


Step 5


Divide the amount worked out in step 4 by the pension factor worked out in step 2.
The result is the annual rate of the additional pension payable after the operative time in respect of the original interest.


(3) However, if it is not possible to reduce the annual rate of additional pension using subsection (2), the reduction of the annual rate of additional pension is to be calculated by an actuary appointed by the Board for this section.



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