10Reduction for transferred contributor under 1988 regulation

10 Reduction for transferred contributor under 1988 regulation

10 Reduction for transferred contributor under 1988 regulation

(1) This section applies to a transferred contributor within the meaning of the State Authorities Superannuation (Transitional Provisions) Regulation 1988 (the 1988 regulation).

(2) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a pension benefit for a transferred contributor, or other eligible person, who elects to take a pension benefit under the 1988 regulation, clause 38—

where—

R is the amount of the reduction.

B is the period in days of continuous contributory service that began on the taxable date.

C is the period in days of continuous contributory service for the transferred contributor concerned.

P is—

(a) if the transferred contributor is dead—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable under the 1988 regulation, clause 44, to the spouse or de facto partner of the contributor, or

(b) otherwise—the proportion of the pension that is attributable to accrued benefit points and that, but for this section, would be payable to the transferred contributor under the 1988 regulation, clause 40, 41, 42 or 43.

(3) If a transferred contributor or other person referred to in subsection (2) elects to convert to a pension benefit only a portion of the benefit points of the transferred contributor, the benefit to be derived from the benefit points remaining after conversion must be reduced in accordance with the provisions of this part that apply to the benefit.