6Calculation of interest ‑ rule 69(4)(b)

6 Calculation of interest ‑ rule 69(4)(b)

(1) Where, pursuant to rule 69(2) of the Rules, the Board approves an increase, by an amount of interest, in the rate of the pension or associate pension payable, interest will be applicable in respect of:

(a) the first relevant period; and

(b) any other relevant periods occurring during the period of delay;

and will be calculated under subclause (3).

(2) In this rule:

first relevant period means the period beginning on the first day of the period of delay, and ending on the first pension pay day occurring after that date.

relevant period means:

(a) the first relevant period; or

(b) a period of a year or part of a year during a period of delay for which the Board has determined interest under cl 7, which begins immediately after the end of another relevant period, and concludes on the earliest of the following dates:

(i) the date on which an increase to the pension or associate pension is applicable, including an increase under Division 2 of Part 6 of the Rules;

(ii) the end of a calendar year; or

(iii) the end of the period of delay.

Note: This means that a constant pension rate and interest rate will be applicable during each period of delay

(3) Interest determined under this rule is equal to the following:

(accumulated amount) - (delayed pension instalments)

where

accumulated amount means the sum of any accumulated amount applicable under subclause (4) or (5) for the last occurring relevant period in the period of delay.

delayed pension instalments means the sum of the pension or associate pension instalments that were payable between the date the pension or associate pension became payable, and the end of the period of delay.

(4) The accumulated amount for the first relevant period is calculated as follows:

LSA x (1 + i)n

where

LSA is the lump sum arrears of pension or associate pension instalments that were payable between the date the pension or associate pension became payable and the date of the last pension instalment before the period of delay commenced.

i is the interest rate determined under cl 7 for the calendar year in which the pension became payable, divided by 365 (or in a leap year, by 366) and multiplied by 14.

n is the number of fortnights occurring during the relevant period, and may include a partial fortnight.

(5) The accumulated amount for each subsequent relevant period is calculated as follows:

[A x (1 + i)n] + [P x [((1+i)n - 1)/i] x (1 + i)]