8Reduction of basic benefit

8 Reduction of basic benefit

8 Reduction of basic benefit

(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the basic benefit—

(a) is payable to an employee under the Act, section 23, or

(b) is preserved for an employee in accordance with the Act, section 24.

(2) For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—

where—

R represents the amount of the reduction.

F represents—

(a) if an employee resigns or retires—the employee’s final average salary, or

(b) otherwise—the employee’s final salary.

Z represents the employee’s years of eligible service calculated on a daily basis, commencing on or after the taxable date.