42Minimum benefit for 2.5% contributors

42 Minimum benefit for 2.5% contributors

(1)  The minimum benefit payable by the Commission to, or on behalf of, a contributor making contributions at the rate of 2.5% of salary is the greater of the benefit calculated under regulation 33 , 34 , 35 , 36 , 37 , 38 or 39 , whichever is appropriate, and the benefit determined in accordance with the following formula:

where –

LS is the benefit payable to the contributor;

RC is the balance of contributions and interest of the contributor’s account established under regulation 28 ;

NCSB is the employer component of the benefit determined in accordance with subregulation (2) ;

SAFB is the balance as at 30 June 1994 of the contributor's account as an eligible employee under the SAF Agreement indexed at a rate declared by the Commission as being equal to whichever is the greater of –

(a) variations in the AWOTE; or

(b) variations in the Consumer Price Index.

(2)  For the purposes of the definition of NCSB in subregulation (1) , the employer component of the benefit is the amount that would have been payable if, for each period of the contributor's service that is within a period referred to in column 1 of the table to this regulation –

(a) the employer component had been determined at the rate specified opposite the period in column 2 of the table; and

(b) interest had been paid in relation to the employer component for the relevant period at the rate specified opposite the period in column 3 of the table.

| Column 1 - Relevant period | Column 2 - Contribution rate | Column 3 - Interest rate | | 1 July 1994 – 30 June 1995 | 5% | The long term bond rate during the relevant period | | 1 July 1995 – 30 June 1998 | 6% | The long term bond rate during the relevant period | | 1 July 1998 – 24 April 2000 | 7% | The long term bond rate during the relevant period | | 25 April 2000 – 30 June 2000 | 7% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2000 – 30 June 2002 | 8% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2002 – 22 March 2014 | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 23 March 2014 until transfer date | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had his or her entire account balance invested in the RBF Balanced Investment Option | | From transfer date onwards | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The interest rate determined under regulation 92 |