9Reduction of deferred accrued benefit

9 Reduction of deferred accrued benefit

9 Reduction of deferred accrued benefit

(1) This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the deferred accrued 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 26F.

(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 the employee’s final average salary.

Z represents the employee’s years of eligible service calculated on a daily basis, during the period commencing on the taxable date and ending on 30 June 1992.