16Exercise of discretion

16 Exercise of discretion

(1) Subclause (2) applies if an eligible actuary considers that a benefit will be provided for the financial year at the discretion of the scheme trustee, or employer‑sponsor, in respect of the member and, on the same basis, in respect of: (a) each other member of the scheme; or (b) if the member is a member of a class of members of the scheme, each other member of that class. (2) The amount that represents the actuarial value of the benefit under this Part for the member for the financial year is an amount that represents the increase in the actuarial value of A(f) and A(u) that would accrue to the member for the financial year if the discretion were to be exercised in the way described in subclause (1). (3) If subclause (2) does not apply, and the scheme trustee or employer‑sponsor exercises the discretion to provide a benefit (the provided benefit) in respect of the member for the financial year, the amount that represents the actuarial value of the benefit under this Part for the member for the financial year is the amount that represents the difference between the value of the provided benefit and the greater of: (a) the actuarial value of the benefit that the actuary assumed would be provided by the scheme trustee or employer‑sponsor; and (b) the actuarial value of the benefit (excluding the value of any additional benefits arising from the exercise of the discretion) that had accrued to the member when the discretion was exercised, worked out using the valuation parameters set out in Part 2.