26Reduction of benefits of contributor spouses—the Act, s 14R(i)

26 Reduction of benefits of contributor spouses—the Act, s 14R(i)

26 Reduction of benefits of contributor spouses—the Act, s 14R(i)

(1) If a family law superannuation payment is made, the benefit payable to the contributor under the Act must be reduced in accordance with subsection (2) at the following times—

(a) for a benefit, including a benefit transferred under the Act, other than a deferred benefit—when the benefit is paid or transferred to the contributor,

(b) for a deferred benefit—

(i) if the benefit is deferred before the family law superannuation payment is made—when the payment is made, or

(ii) if the benefit is deferred after the family law superannuation payment is made—when the benefit is deferred.

(2) The benefit must be reduced in accordance with the following calculation—

where—

R is the amount of the reduced benefit.

V is the amount of the benefit that would have been payable to the contributor if the family law superannuation payment had not been made.

A is the ratio of the amount of the family law superannuation payment made to the non-contributor spouse to the value of the contributor’s benefit when the payment split occurred.

C is the ratio of the benefit accrual when the payment split occurred to the benefit accrual when the benefit is payable, deferred or transferred, as the case requires.

(3) If family law superannuation payments are made to, or in relation to, more than one non-contributor spouse, the amount of the contributor’s reduced benefit is further reduced by multiplying the reduced benefit by the following reduction factor for each family law superannuation payment—

where—

F is the reduction factor.

A and C have the same meanings as in subsection (2).

(4) Subsection (3) does not apply if the reduced benefit is a deferred benefit.

(5) In this section—

benefit accrual, for a benefit at a point in time, means the benefit accrual at that time as determined by STC in accordance with actuarial advice.