I, Penelope Ying Yen Wong, Minister for Finance and Deregulation, make the following order under the Judges’ Pensions Act 1968.
Dated: 12 March 2013
Penelope Ying Yen Wong
Minister for Finance and Deregulation
Contents
Part 1—Preliminary
1 Name of order
2 Commencement
3 Authority
4 Definitions
Part 2—Scheme value and pension rates
5 Scheme value—member spouse with no surcharge debt
6 Scheme value—member spouse with surcharge debt
7 Associate immediate pension for non‑member spouse
8 Associate deferred pension
9 Associate deferred pension—death of non‑member spouse
10 Operative time during growth phase—reduction of associate deferred pension
11 Operative time during payment phase—reduction of standard pension
Schedule 1—Methods and factors
Part 1—Methods
Division 1.1—Interpretation
1 Definitions
Division 1.2—Interests in the growth phase
2 Methods and factors for interests of members in the scheme
Division 1.3—Interests in the payment phase
3 Methods and factors for interests of members in the scheme
Division 1.4—Factors
Part 2—Factors
Part 1—Preliminary
1 Name of order
This order is the Judges’ Pensions Order 2013.
2 Commencement
This order commences on 15 March 2013.
3 Authority
This order is made under the Judges’ Pensions Act 1968.
4 Definitions
In this order:
Act means the Judges’ Pensions Act 1968.
Federal Court Judge’s salary means the annual salary of a Judge of the Federal Court of Australia, other than the Chief Justice.
Table 1 means Table 1 of Part 2 of Schedule 1.
Table 2 means Table 2 of Part 2 of Schedule 1.
Table 3 means Table 3 of Part 2 of Schedule 1.
Treasury bond rate means:
(a) if any Treasury bonds with a 10 year term were issued on the last working day of the financial year ending immediately before the period for which the increase is being calculated—the annual yield on those bonds; or
(b) in any other case—the annual yield on Treasury bonds with a 10 year term, as published by the Reserve Bank of Australia for that day.
Note: For the definitions of the following terms, see subsection 4(1) of the Act:
(a) associate deferred pension;
(b) associate immediate pension;
(c) member spouse;
(d) operative time;
(e) original interest;
(f) retirement pension;
(g) standard pension;
(h) transfer amount.
Part 2—Scheme value and pension rates
5 Scheme value—member spouse with no surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time did not show a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in subsection 4(1) of the Act, the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force immediately before the operative time.
6 Scheme value—member spouse with surcharge debt
(1) This section applies if the most recent member information statement (the statement) provided to a member spouse before the operative time showed a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in subsection 4(1) of the Act, the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force immediately before the operative time.
(3) However, if:
(a) it is necessary to calculate the scheme value for the purpose of the definition of transfer amount in subsection 4(1) of the Act; and
(b) the operative time is on or after the day on which this subsection commences; and
(c) the Secretary of the Department has received a splitting agreement or splitting order in respect of the original interest;
the scheme value is the value identified under subsection (2), reduced by the amount of the member spouse’s surcharge debt shown in the statement.
7 Associate immediate pension for non‑member spouse
For subsection 17AA(2) of the Act, the rate is calculated as follows:
Method statement
Step 1. Identify the transfer amount that was payable at the operative time.
Fy is the number in Table 1 that applies to the non‑member spouse’s gender, and age in whole years, at the operative time.
Fy+1 is the number in Table 1 that would apply to the non‑member spouse if the non‑member spouse’s age in whole years was one year more than it was at the operative time.
m is the number of whole months of the non‑member spouse’s age that are not included in the non‑member spouse’s age in whole years at the operative time.
Step 3. Divide the transfer amount identified in step 1 by the amount calculated in step 2.
Step 4. Divide the amount calculated in step 3 by the Federal Court Judge’s salary at the operative time.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 5. Multiply the amount calculated in step 4 by the Federal Court Judge’s salary.
8 Associate deferred pension
For subsection 17AB(1) of the Act, the annual rate is calculated as follows:
Method statement
Step 1. Identify the transfer amount that was payable at the operative time.
Step 2A. Add the amount identified in step 1 to the increases in the transfer amount calculated in steps 2B, 2C and 2D.
Step 2B. 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 when the associate deferred pension becomes payable.
This is the first period.
Calculate the increase in the transfer amount for the first period using the formula:
rate is the Treasury bond rate for the financial year in which the first period occurs.
time is the number of days in the first period.
Round the result to 2 decimal places (rounding up if the third decimal place is 5 or more).
Step 2C. Second period (if any)
Use this step if one or more full financial years occurs immediately after the end of the first period and before the associate deferred pension becomes payable.
This is the second period.
Calculate the increase in the transfer amount for each full financial year of the second period using the formula:
Fy is the number in Table 1 that applies to the non‑member spouse’s gender, and age in whole years, when the associate deferred pension becomes payable.
Fy+1 is the number in Table 1 that would apply to the non‑member spouse if the non‑member spouse’s age in whole years was one year more than it was when the associate deferred pension becomes payable.
m is the number of whole months of the non‑member spouse’s age that are not included in the non‑member spouse’s age in whole years when the associate deferred pension becomes payable.
Step 4. Divide the amount calculated in step 2A by the amount calculated in step 3.
Step 5. Divide the amount calculated in step 4 by the Federal Court Judge’s salary when the associate deferred pension becomes payable.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 6. Multiply the amount calculated in step 5 by the Federal Court Judge’s salary
9 Associate deferred pension—death of non‑member spouse
(1) This section is made for subsection 17AB(6) of the Act.
(2) The amount payable is the transfer amount that was payable at the date of death:
(a) reduced by any payment split before the date of death; and
(b) increased in the way described in step 2A in section 8 as if an associate deferred pension had become payable at the date of death.
10 Operative time during growth phase—reduction of associate deferred pension
For section 17AG of the Act, the annual rate of the associate deferred pension (when it becomes payable) is reduced to the amount calculated as follows:
Method statement
Step 1. Identify the transfer amount that was payable at the operative time.
Step 2A. Add the amount identified in step 1 to the increases in the transfer amount calculated in steps 2B, 2C and 2D.
Step 2B. 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 when the associate deferred pension becomes payable.
This is the first period.
Calculate the increase in the transfer amount for the first period using the formula:
rate is the Treasury bond rate for the financial year in which the first period occurs.
time is the number of days in the first period.
Round the result to 2 decimal places (rounding up if the third decimal place is 5 or more).
Step 2C. Second period (if any)
Use this step if one or more full financial years occurs immediately after the end of the first period and before the associate deferred pension becomes payable.
This is the second period.
Calculate the increase in the transfer amount for each full financial year of the second period using the formula:
increased amount is the amount identified in step 1, added to:
(a) the increase in the transfer amount calculated in step 2B; and
(b) the increases in the transfer amount calculated in step 2C for each financial year in the second period.
rate is the Treasury bond rate for the financial year in which the final period occurs.
time is the number of days in the final period.
Round the result to 2 decimal places (rounding up if the third decimal place is 5 or more).
Step 3. Identify the associate deferred pension, as calculated under subsection 17AB(1) of the Act on the date of payment, disregarding the payment split.
Fy is the number in Table 1 that applies to the member spouse’s gender, and age in whole years, when the associate deferred pension becomes payable.
m is the number of whole months of the member spouse’s age that are not included in the member spouse’s age in whole years when the associate deferred pension becomes payable.
Fy+1 is the number in Table 1 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it is when the associate deferred pension becomes payable.
Step 5. Multiply the amount identified in step 3 by the amount calculated in step 4 (ensuring the amount identified in step 3 takes account of any previous payment split).
Step 6. Reduce the amount calculated in step 5 by the amount calculated in step 2A.
Step 7. Divide the amount calculated in step 6 by the amount calculated in step 4.
Step 8. Divide the amount calculated in step 7 by the Federal Court Judge’s salary when the associate deferred pension becomes payable.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 9. Multiply the amount calculated in step 8 by the Federal Court Judge’s salary.
11 Operative time during payment phase—reduction of standard pension
(1) For subsection 17AH(2) of the Act, the annual rate of a standard pension is reduced to the amount calculated as follows:
Method statement
Step 1. Identify the annual rate of the associate immediate pension or immediate transitional pension that was payable at the operative time.
Fy is the number in Table 1 that applies to the member spouse’s gender, and age in whole years, at the operative time.
Fy+1 is the number in Table 1 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it was at the operative time.
m is the number of whole months of the member spouse’s age that are not included in the member spouse’s age in whole years at the operative time.
Step 3. Multiply the amount identified in step 1 by the amount calculated in step 2.
Step 4. Subtract the transfer amount from the amount calculated in step 3.
Step 5. Divide the amount calculated in step 4 by the amount calculated in step 2.
Step 6. Divide the amount calculated in step 5 by the Federal Court Judge’s salary at the operative time.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 7. Multiply the amount calculated in step 6 by the Federal Court Judge’s salary.
(2) For subsection 17AH(2) of the Act, the annual rate of an associate deferred pension is reduced to the amount calculated as follows:
Method statement
Step 1. Identify the annual rate of the associate deferred pension that was payable at the operative time.
Fy is the number in Table 1 that applies to the member spouse’s gender, and age in whole years, at the operative time.
Fy+1 is the number in Table 1 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it was at the operative time.
m is the number of whole months of the member spouse’s age that are not included in the member spouse’s age in whole years at the operative time.
Step 3. Multiply the amount identified in step 1 by the amount calculated in step 2.
Step 4. Subtract the transfer amount from the amount calculated in step 3.
Step 5. Divide the amount calculated in step 4 by the amount calculated in step 2.
Step 6. Divide the amount calculated in step 5 by the Federal Court Judge’s salary at the operative time.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 7. Multiply the amount calculated in step 6 by the Federal Court Judge’s salary.
(3) For subsection 17AH(3) of the Act, the annual rate of a retirement pension is reduced to the amount calculated as follows:
Method statement
Step 1. Identify the annual rate of the retirement pension that was payable at the operative time.
(a) if the pension is not payable on permanent incapacity—the number in Table 2 that applies to the member spouse’s gender, and age in whole years, at the operative time; and
(b) if the pension is payable on permanent incapacity—the number in Table 3 that applies to the member spouse’s gender, and age in whole years, at the operative time.
Fy+1 is:
(a) if the pension is not payable on permanent incapacity—the number in Table 2 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it was at the operative time; and
(b) if the pension is payable on permanent incapacity—the number in Table 3 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it was at the operative time.
m is the number of whole months of the member spouse’s age that are not included in the member spouse’s age in whole years at the operative time.
Step 3. Multiply the amount identified in step 1 by the amount calculated in step 2.
Step 4. Subtract the transfer amount from the amount calculated in step 3.
Step 5. Divide the amount calculated in step 4 by the amount calculated in step 2.
Step 6. Divide the amount calculated in step 5 by the annual rate of the applicable judicial salary at the operative time.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 7. Multiply the amount calculated in step 6 by the applicable judicial salary.
(4) For subsection 17AH(2) of the Act, the annual rate of a spouse pension is reduced to the amount calculated as follows:
Method statement
Step 1. Identify the annual rate of the spouse pension that was payable at the operative time.
Fy is the number in Table 1 that applies to the member spouse’s gender, and age in whole years, at the operative time.
Fy+1 is the number in Table 1 that would apply to the member spouse if the member spouse’s age in whole years was one year more than it was at the operative time.
m is the number of whole months of the member spouse’s age that are not included in the member spouse’s age in whole years at the operative time.
Step 3. Multiply the amount identified in step 1 by the amount calculated in step 2.
Step 4. Subtract the transfer amount from the amount calculated in step 3.
Step 5. Divide the amount calculated in step 4 by the amount calculated in step 2.
Step 6. Divide the amount calculated in step 5 by the annual rate of the applicable judicial salary at the operative time.
Round the result to 4 decimal places (rounding up if the fifth decimal place is 5 or more).
Step 7. Multiply the amount calculated in step 6 by the applicable judicial salary.
Schedule 1—Methods and factors
Note: See sections 5 and 6.
Part 1—Methods
Division 1.1—Interpretation
1 Definitions
In this Part:
scheme means the scheme constituted by the Act.
Division 1.2—Interests in the growth phase
2 Methods and factors for interests of members in the scheme
For an interest that is in the growth phase in the scheme mentioned in an item in the following table, the method or factor mentioned in the item is approved for sections 5 and 6.
Item
Interest in the growth phase
Method or factor
1
An interest that a person has in the scheme, being a person who:<br>(a) is a Judge; and<br>(b) is to cease to hold office as a Judge when he or she reaches a particular age; and<br>(c) will, by the time he or she reaches that age, have served as a Judge for at least 6 years.
(a) The approved method is:<br>View image in the official source<br> where:<br> APF has the same meaning as in the Act.<br> F has the meaning given by paragraph (b).<br> LS is the benefit that would have been payable under section 12A of the Act, after taking into account any reduction under section 17AF, if the person had died on the relevant date and no spouse or orphan pension had been payable.<br> LSF has the meaning given by paragraph (c).<br> RAPF is the component (APF × Transfer factor) in the formula in subsection 17AD(5) of the Act, as modified under section 17AE of that Act if applicable.<br> S is the annual salary payable to the person as a Judge at the relevant date.<br>(b) For paragraph (a), F is determined in accordance with the following formula:<br> View image in the official source<br> where:<br> Fy,a is the valuation factor mentioned in whichever of Tables 1A to 1D is applicable that applies to the person having regard to the person’s gender, compulsory retirement age, age in completed years at the relevant date and the age in completed years at which the person can first retire with a pension.<br> Fy+1,a is the valuation factor mentioned in whichever of Tables 1A to 1D is applicable that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.<br> Fy,a+1 is the valuation factor mentioned in whichever of Tables 1A to 1D is applicable that would apply if the age in completed years at which the person can first retire with a pension were 1 year more than it is.<br> Fy+1,a+1 is the valuation factor mentioned in whichever of Tables 1A to 1D is applicable that would apply if, at the relevant date, both the person’s age in completed years and the age in completed years at which the person can first retire were 1 year more than they are.<br> m is the number of complete months of the person’s age, at the relevant date, that are not included in the completed years of age.<br> ma is the number of complete months of the age at which the person can first retire with a pension that are not included in the age in completed years.<br>(c) For paragraph (a), LSF is determined in accordance with the following formula:<br> View image in the official source<br>where:<br> LSFy,a is the lump sum valuation factor mentioned in whichever of Tables 2A to 2D is applicable that applies to the person having regard to the person’s gender, compulsory retirement age, age in completed years at the relevant date and the age in completed years at which the person can first retire with a pension.<br> LSFy+1,a is the lump sum valuation factor mentioned in whichever of Tables 2A to 2D is applicable that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.<br> LSFy,a+1 is the lump sum valuation factor mentioned in whichever of Tables 2A to 2D is applicable that would apply if the age in completed years at which the person can first retire with a pension were 1 year more than it is.<br> LSFy+1,a+1 is the lump sum valuation factor mentioned in whichever of Tables 2A to 2D is applicable that would apply if, at the relevant date, both the person’s age in completed years and the age in completed years at which the person can first retire were 1 year more than they are.<br> m is the number of complete months of the person’s age, at the relevant date, that are not included in the completed years of age.<br> ma is the number of complete months of the age at which the person can first retire with a pension that are not included in the age in completed years.
2
An interest that a person has in the scheme, being a person who:<br>(a) is a Judge; and<br>(b) is to cease to hold office as a Judge upon his or her attaining a particular age; and<br>(c) will, by the time he or she attains that age, have served as a Judge for less than 6 years.
The benefit that would have been payable under section 12A of the Act, after taking into account any reduction under section 17AF, if the person had died on the relevant date and no spouse or orphan pension had been payable.<br>
3
An interest that a person has in the scheme, being a person who:<br>(a) is a Judge; and<br>(b) is not to cease to hold office as a Judge upon his or her attaining a particular age.
View image in the official source<br>where:<br>HP is the annual rate of pension that would be payable to the person if the person retired on the relevant date.<br>m is the number of complete months of the person’s age, at the relevant date, that are not included in the completed years of age.<br>PFy is the pension valuation factor mentioned in Table 3 in relation to an age pension for the person’s gender and age in completed years at the relevant date.<br>PFy+1 is the pension valuation factor mentioned in Table 3 in relation to an age pension that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.
4
An interest that a person has as a result of an entitlement to an associate deferred pension (not yet payable) in accordance with section 17AB of the Act.
View image in the official source<br>where:<br>ATA is the amount calculated under step 2A of section 8 of the Judges’ Pensions Order 2013, but with the reference to the time when the associate deferred pension becomes payable taken to be a reference to the relevant date.<br>m is the number of complete months of the person’s age, at the relevant date, that are not included in the completed years of age.<br>PFy is the pension valuation factor mentioned in Table 3 in relation to a spouse pension for the person’s gender and age in completed years at the relevant date.<br>PFy+1 is the pension valuation factor mentioned in Table 3 in relation to a spouse pension that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.<br>SVPFy is the scheme value pension factor mentioned in Table 4 for the person’s gender and age in completed years at the relevant date.<br>SVPFy+1 is the scheme value pension factor mentioned in Table 4 that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.
Division 1.3—Interests in the payment phase
3 Methods and factors for interests of members in the scheme
For an interest that is in the payment phase in the scheme mentioned in an item in the following table, the method or factor mentioned in the item is approved for sections 5 and 6.
Item
Interest in the payment phase
Method or factor
1
An interest that a person has in the scheme as a result of being paid a pension under the Act.
View image in the official source<br>where:<br>AP is the annual rate of pension payable to the person at the relevant date.<br>m is the number of complete months of the person’s age, at the relevant date, that are not included in the completed years of age.<br>PFy is the pension valuation factor mentioned in Table 3 for the person’s pension type, gender and age in completed years at the relevant date.<br>PFy+1 is the pension valuation factor mentioned in Table 3 that would apply if the person’s age in completed years at the relevant date were 1 year more than it is.
Division 1.4—Factors
Table 1A Valuation factors for serving judges (F)—males with compulsory retiring age of 65