26Reduction of benefits of contributors—the Act, s 45K(g)

26 Reduction of benefits of contributors—the Act, s 45K(g)

26 Reduction of benefits of contributors—the Act, s 45K(g)

(1) If a family law superannuation payment is made, the benefit payable to the non-contributor spouse under the Act must be reduced in accordance with this section at the following times—

(a) for an employer-financed benefit—when the benefit is paid to the contributor or transferred, or

(b) for a contributor-financed benefit—when the superannuation entitlement of the non-contributor spouse is paid, released, transferred or rolled over.

(2) The amount of the reduced employer-financed benefit must be calculated as follows—

where—

R is the amount of the reduced benefit.

V is the amount of the benefit that would have been payable to the contributor if the family law superannuation payment had not been made.

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

C is the ratio of the benefit accrual when the payment split occurred to the benefit accrual when the benefit is payable or deferred or transferred.

(3) If family law superannuation payments are made in relation to more than one spouse of the contributor, the amount of the reduced employer-financed benefit must be calculated by applying the reduction factor for each family law superannuation payment to the amount of the benefit payable under subsection (2).

(4) Each reduction factor must be calculated as follows—

where—

F is the reduction factor.

A and C have the same meanings as in subsection (2).

(5) The amount of the reduced contributor-financed benefit must be calculated as follows—

where—

R, V and A have the same meanings as in subsection (2).

(6) In this section—