Item
Interest in the growth phase
Method or factor
1
An interest that a person who is a member of either House has in the Scheme.
(ABP × Parl. A + AARA – PC) × PFy+m,s + LS × LSFy+m,s
where:
ABP is the person’s accrued basic pension multiple at the operative time calculated, by reference to the person’s period of service:
(a) by adding:
(i) for service that occurred within the first 8 years — 0.0625 × each full year of service plus 0.0625/365 × the number of left‑over days in that period; and
(ii) for service that occurred within the next 10 years — 0.025 × each full year of service plus 0.025/365 × the number of left‑over days in that period; and
(b) if section 22CD of the Act applies to the interest — by subtracting from the amount calculated under paragraph (a) any interim factors for previous splits (calculated in accordance with subsection 22CH (6) of the Act) that would apply after a retiring allowance becomes payable.
Note ABP will not exceed 0.75.
Parl. A is the parliamentary allowance of the person, expressed as an annual amount, at the operative time.
AARA is the person’s additional retiring allowance, if any, being the lesser of:
(a) the sum of the additional retiring allowances accrued at the operative time by the person for each office the person held as a Minister of State or as an office holder during the person’s period of service, calculated, for each office, as the product of:
(i) the person’s accrued additional retiring allowance multiple — being 0.0625 × the number of years, and any fraction of a year, the person served as a Minister of State or an office holder, as the case may be, during that period, and if section 22CD of the Act applies to the interest, that multiple less the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable; and
(ii) the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time; and
(b) whichever of the following applies:
(i) if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act does not apply to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time;
(ii) if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act applies to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time;
(iii) if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act does not apply to the interest — 75% of the highest annual salary or annual allowance by way of salary payable in respect of those offices at the operative time;
(iv) if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act applies to the interest — 75% of the highest annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of those offices, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time.
PC is the annual amount, if any, by which the person’s retiring allowance is reduced under subsection 20 (3A) of the Act.
PFy+m,s is the pension valuation factor calculated in accordance with the following formula:
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where:
PFy,s is the pension valuation factor mentioned, for:
(a) the person’s age in completed years (y) at the operative time; and
(b) the person’s period of service in completed years (s) as at the date of the last House of Representatives election before the operative time;
in whichever of Tables 1 to 36 is applicable, according to Table A, given the following:
(c) the person’s gender;
(d) whether he or she is a member of the House of Representatives or the Senate or was such a member at the operative time;
(e) whether or not, if he or she became entitled to a retiring allowance within the meaning of the Act, he or she would be a deferring member;
(f) the number of completed years, at the operative time, since the last election of the House of Representatives;
(g) in the case of a member of the Senate, whether he or she last became a member of the Senate (whether by election or otherwise) before the last House of Representatives election.
m is the number of complete months of the person’s age at the operative time that are not included in the person’s completed years of age.
PFy+1,s is the pension valuation factor mentioned in whichever of Tables 1 to 36 is applicable that would apply if the person’s age in completed years at the operative time were 1 year more than it is.
LS is the sum of the person’s member contributions paid to the operative time, plus:
(a) for a person whose period of service is at least 8 years — 2⅓ times the person’s member contributions paid in the period of service of 8 years immediately before the operative time; or
(b) for a person whose period of service is less than 8 years — 2⅓ times the person’s member contributions paid in the period of service immediately before the operative time.
LSFy+m,s is the factor calculated in accordance with the following formula:
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where:
LSFy,s is the lump sum valuation factor mentioned for:
(a) the person’s age in completed years (y) at the operative time; and
(b) the person’s period of service in completed years (s) as at the date of the last House of Representatives election before the operative time;
in whichever of Tables 37 to 54 is applicable, according to Table B, given the following:
(c) the person’s gender;
(d) whether he or she is a member of the House of Representatives or the Senate;
(e) the number of completed years, at the operative time, since the last election of the House of Representatives;
(f) in the case of a member of the Senate, whether he or she last became a member of the Senate (whether by election or otherwise) before the last House of Representatives election.
m has the meaning given above.
LSFy+1,s is the lump sum valuation factor mentioned in whichever of Tables 37 to 54 is applicable that would apply if the person’s age in completed years at the operative time were 1 year more than it is.
2
An interest that a person who has ceased to be a member of either House has in the Scheme as a deferring member under Part VA of the Act, before the day on which the person attains the age of 55 years.
(ABP × Parl. A + AARA – PC) × DPFy+m
where:
ABP is the person’s accrued basic pension multiple at the operative time calculated, by reference to the person’s period of service:
(a) by adding:
(i) for service that occurred within the first 8 years — 0.0625 × each full year of service plus 0.0625/365 × the number of left‑over days in that period; and
(ii) for service that occurred within the next 10 years — 0.025 × each full year of service plus 0.025/365 × the number of left‑over days in that period; and
(b) if section 22CD of the Act applies to the interest — by subtracting from the amount calculated under paragraph (a) any interim factors for previous splits (calculated in accordance with subsection 22CH (6) of the Act) that would apply after a retiring allowance becomes payable.
Note ABP will not exceed 0.75.
Parl. A is the parliamentary allowance, expressed as an annual amount, payable to a member of either House of the Parliament at the operative time.
AARA is the person’s additional retiring allowance, if any, being the lesser of:
(a) the sum of the additional retiring allowances accrued at the operative time by the person for each office the person held as a Minister of State or as an office holder during the person’s period of service, calculated, for each office, as the product of:
(i) the person’s accrued additional retiring allowance multiple — being 0.0625 × the number of years, and any fraction of a year, the person served as a Minister of State or an office holder, as the case may be, during that period, and if section 22CD of the Act applies to the interest, that multiple less the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable; and
(ii) the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time; and
(b) whichever of the following applies:
(i) if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act does not apply to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time;
(ii) if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act applies to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time;
(iii) if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act does not apply to the interest — 75% of the highest annual salary or annual allowance by way of salary payable in respect of those offices at the operative time;
(iv) if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act applies to the interest — 75% of the highest annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of those offices, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH (7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time.
PC is the annual amount, if any, by which the person’s retiring allowance is reduced under subsection 20 (3A) of the Act.
DPFy+m is the deferred pension valuation factor calculated in accordance with the following formula:
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where:
DPFy is the deferred pension valuation factor mentioned in Table 55 that applies at the person’s age in completed years (y) at the operative time for the person’s gender.
m is the number of complete months of the person’s age at the operative time that are not included in the person’s completed years of age.
DPFy+1 is the deferred pension valuation factor mentioned in Table 55 that would apply if the person’s age in completed years at the operative time were 1 year more than it is.
3
An interest that a person has in the Scheme if the person is entitled to an associate deferred annuity under subsection 22CD (3) of the Act.
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where UTA is:
(a) the lump sum value of the transfer amount, as increased in accordance with the method set out below; or
(b) if section 22CD of the Act applies to the interest — the amount calculated under paragraph (a) less the sum of any reductions that apply under section 22CI of the Act, as if the annuity had become payable at the operative time.
Method for increasing transfer amount
Step 1
Increase the transfer amount for any period between the operative time (being the operative time in relation to the splitting agreement or splitting order as a result of which the person has the entitlement under subsection 22CD (3) of the Act) and the operative time, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.
Note The period between the operative time and the operative time may include a number of full financial years, or may occur entirely within a single financial year.
Treasury bond rate for bonds with a 10 year term
The Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:
(a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or
(b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.
Calculation of increase in transfer amount
The increase in the transfer amount is calculated:
(a) at the end of each financial year that occurs between the operative time and the operative time; and
(b) immediately before the operative time;
using the applicable Treasury bond rate for the relevant period worked out in accordance with steps 2, 3 and 4, and compounded period by period.
Step 2
First period
Identify the shorter of:
(a) the period between the operative time and the end of the financial year in which the operative time occurs; and
(b) the period between the operative time and the operative time.
This is the first period.
Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.
Round the result to 3 decimal places.
The result is the applicable Treasury bond rate for the first period.
Step 3
Full financial years (if any)
Use this step if a full financial year occurs immediately after the end of the first period and before the operative time. This is the second period.
Identify the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year.
Round the result to 3 decimal places.
The result is the applicable Treasury bond rate for the second period.
Repeat this arrangement for each full financial year after the second period.
Step 4
Final period (if any)
Use this step if:
(a) there is any period between the end of a financial year and the operative time; and
(b) neither step 2 nor step 3 covers that period.
This is the final period.
Multiply the number of days in the final period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the final period occurs, and divide the result by 365.
Round the result to 3 decimal places.
The result is the applicable Treasury bond rate for the final period.