15Reduction in benefits relating to past benefits

15 Reduction in benefits relating to past benefits

15 Reduction in benefits relating to past benefits

(1) This section applies to a benefit payable on or after 1 July 2000 that is—

(a) a superannuation allowance under a provision referred to in section 7 that was first payable on or after 1 July 1988 and before 1 July 1997, or

(b) a superannuation allowance granted under the Act, section 11, 11AA, 11A, 11C or 12(1AA)(b)(ii) to the spouse of a former member of the police force who first received a superannuation allowance on or after 1 July 1988 and before 1 July 1997.

(2) In addition to other reductions calculated under this division, benefits to which this section applies must be reduced in accordance with this section.

(3) A benefit referred to in subsection (1)(a) must be reduced by an amount calculated by applying sections 12, 13 and 14 to the amount of the superannuation allowance when it was first payable.

(4) A benefit referred to in subsection (1)(b) must be reduced by an amount equal to 62.5% of the amount calculated by applying sections 12, 13 and 14 to the superannuation allowance paid to the former member whose spouse is receiving the allowance, on the date the allowance was first paid to the former member.

(5) In addition to a reduction calculated under subsection (3) or (4), a benefit to which this section applies must be further reduced by amounts calculated by applying sections 12, 13 and 14 to the amount of each increase, as at the date on which the increase was effected if—

(a) the benefit is a superannuation allowance payable under the Act, section 10 or 12, and

(b) the benefit has increased since the first date on which the benefit was payable.

(6) If a benefit has been reduced as a result of one or more commutations, the amount of reduction calculated under subsection (3), (4) or (5) must be diminished by multiplying it by a fraction equal to the proportion the benefit payable on 1 July 2000 bears to the benefit that would have been payable on that date if no commutation had occurred.

(7) For a superannuation allowance liable to adjustment under the Act, Part 4, Division 2, the amount of a reduction calculated under subsection (3), (4) or (5) must be adjusted for each year during which the allowance has been paid, ending on 1 July 2000, by the adjustment percentage for that year applied to the superannuation allowance under that division.