43Indexation of factors affecting pension rates

43 Indexation of factors affecting pension rates

(1) This section provides for the indexation on 1 January or 1 July (the indexation day) of a rate (the indexed rate) that another provision of this Act indicates is to be indexed. (2) The indexed rate is increased on the indexation day if the index number (the latest index number) for the latest September quarter or March quarter before the indexation day is greater than the greatest index number (the old record index number) for an earlier March quarter or September quarter after 31 December 2015. (3) The increased rate is worked out by multiplying the indexed rate immediately before the indexation day by the indexation factor worked out under subsection (4). (4) The indexation factor is worked out using the following formula and rounding the result to 3 decimal places (rounding up if the number in the fourth decimal place is 5 or greater): Start formula start fraction Latest index number minus Old record index number over Old record index number end fraction end formula (5) For the purposes of this section: (a) have regard only to the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and (b) disregard index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).