4Method of determining amount of defined benefit contributions

4 Method of determining amount of defined benefit contributions

(1) The defined benefit contributions for an accruing member of a defined benefit fund for a financial year is the amount worked out using the following formula: Start formula open bracket BC minus NTC close bracket times 0.85 plus NTC end formula where, for the financial year:

BC is the notional employer contribution calculated for the member under subclause (2).

NTC is the notional taxed contributions calculated for the member for the financial year under Schedule 1A, disregarding Subdivision 291‑C of the Income Tax (Transitional Provisions) Act 1997.

Note 1: Section 291‑170.04 sets out circumstances in which notional taxed contributions are nil.

Note 2: Salary packaged contributions which do not contribute towards funding the defined benefit interest are included in the amount calculated under step 1 of the method statement set out in section 293‑105 of the Act and do not form any part of the method of determining defined benefit contributions.

(2) The notional employer contribution for an accruing member of a defined benefit fund for a financial year is the amount worked out using the following formula: Start formula sum of NEFC plus open bracket 1.2 times open bracket category change or discretion adjustment amount plus governing rules change adjustment amount plus increased exit benefit adjustment amount plus increased superannuation salary adjustment amount close bracket close bracket end formula where, for the financial year:

category change or discretion adjustment amount is an amount worked out on advice from an actuary under Part 5.

governing rules change adjustment amount is an amount worked out on advice from an actuary under Part 6.

increased exit benefit adjustment amount is an amount worked out on advice from an actuary under Part 4.

increased superannuation salary adjustment amount is an amount worked out on advice from an actuary under Part 7.

sum of NEFC is the sum of the amounts of notional employer financed contributions for each benefit category that the member belongs to during the financial year calculated under subclause (3).

(3) The notional employer financed contributions for an accruing member for a benefit category of a defined benefit fund for a financial year is the amount worked out using the following formula: where, for the financial year: