8Reduction for the Act, section 41

8 Reduction for the Act, section 41

8 Reduction for the Act, section 41

(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 41—

where—

R is the amount of the reduction.

T is the period in years, with a fractional part of a year being calculated based on complete contribution periods, that commenced on the most recent of the taxable date or the contributor’s entry date and ended on the contributor’s exit date.

C is the amount of the contributor-financed benefit payable under the Act, section 41(2)(a).

A is the accrued benefit points for the contributor at the contributor’s exit date.

Y is the sum of the contributor’s contributed points figures calculated in relation to the contributor for the applicable contribution periods.

(2) This section does not apply to a benefit if the contributor’s period of continuous contributory service is less than 10 years.