9Reduction for the Act, section 43

9 Reduction for the Act, section 43

9 Reduction for the Act, section 43

(1) For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit if a contributor elects to provide for a deferred benefit under the Act, section 43—

where—

R is the amount of the reduction.

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

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 contributor.

F is the contributor’s final average salary.

K is the discount factor determined by STC for the Act, section 43(6)(b).

n is the period expressed in years between the contributor’s age at the contributor’s exit date and the early retirement age, with a fractional part of a year being calculated on the basis of complete contribution periods.