17Reduction of benefits of employee—the Act, s 27AL(j)

17 Reduction of benefits of employee—the Act, s 27AL(j)

17 Reduction of benefits of employee—the Act, s 27AL(j)

(1) If a family law superannuation payment is made, the benefit payable to the employee under the Act must be reduced in accordance with this section.

(2) A benefit payable to an employee, including a benefit transferred under the Act, but not including a preserved benefit, must be reduced when the benefit is paid to the employee or transferred.

(3) A preserved benefit must be reduced—

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

(b) if the benefit is preserved after the family law superannuation payment is made —when the benefit is preserved.

(4) 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 employee under the Act if the family law superannuation payment had not been made.

A is the ratio of the amount paid in relation to the non-employee spouse to the value of the benefit of the employee when the payment split occurred.

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

(5) If family law superannuation payments are made to, or in relation to, more than one non-employee spouse, the amount of the reduced benefit must be 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 meaning as in subsection (4).

(6) In this section—

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

made, in relation to a family law superannuation payment, means paid, released, transferred or rolled over to, or in relation to, the non-employee spouse.