91Indexation of pensions

91 Indexation of pensions S. 91(1) amended by No. 49/1992 s. 31(a)(b), substituted by Nos 110/1993 s. 90(1), 120/1994 s. 64. S. 91(1) def. of *consumer price index* substituted by No. 44/2014 s. 33(Sch. item 27(1)). ***consumer price index*** means the all groups consumer price index for all capital cities published by the Australian Bureau of Statistics in original terms in respect of the reference period or periods in respect of each half year ending on 30 June or 31 December; ***prescribed half yea*r** means the half year ended 30 June 1987 or any subsequent half year ending on 31 December or 30 June in which the consumer price index is higher than the previous highest consumer price index in or since the half year ended 30 June 1987; S. 91(1) def. of *prescribed percentage* amended by No. 44/2014 s. 33(Sch. item 27(2)). ***prescribed percentage*** in relation to a prescribed half year after 30 June 1987 means the percentage calculated to two decimal places in accordance with the formula— where A is the consumer price index for the prescribed half year and B is the consumer price index for the preceding prescribed half year. S. 91(2) amended by No. 49/1992 s. 31(c), substituted by Nos 110/1993 s. 90(1), 120/1994 s. 64. (2) A pension under this Act must— (a) if it is then payable, be increased on the payment of the first instalment of pension in the month of December or June by an amount equal to one-sixth of the prescribed percentage (if any) for the preceding half year of the pension for every whole month or part of a month during the preceding half year in respect of which a pension has been payable; or (b) if for any reason it is not then payable, be notionally so increased as if then payable. S. 91(2A) inserted by No. 81/1988 s. 33(p). (2A) A reference in subsection (2) to a ***pension*** includes a reference to— (a) any deferred pension under sections 44, 45, 46 and 61; and (b) any deferred benefit under section 58. (3) If a pensioner becomes liable to have the amount of any pension, allowance, subsidy, concession or other benefit payable to the pensioner under the Social Security Act 1947 of the Commonwealth or the Veterans' Entitlements Act 1986 of the Commonwealth reduced by reason of an increase in the amount of the pensioner's fortnightly pension entitlement under this Act the Board may, on the application in writing of the pensioner at any time within the period commencing 3 months before the date on which the reduction is due to take effect and ending 3 months after the date on which the reduction took effect, convert the amount of the increase in the pensioner's fortnightly pension entitlement to an equivalent entitlement by way of a lump sum payment as determined by an actuary appointed by the Board. (4) If an application by a pensioner under subsection (3) is approved by the Board, the pensioner is entitled to the lump sum payment on the day on which the reduction in the amount of the Commonwealth pension or other benefit is due to take effect or on the day on which the approval is given (whichever is the later) and the pensioner's pension is to be reduced by the amount of the pension entitlement converted to a lump sum on the day on which the pensioner becomes entitled to the lump sum payment. S. 91(5) amended by No. 27/2001 s. 5(Sch. 3 item 5.16). (5) An approval under this section operates to convert the proportion of the fortnightly pension entitlement of the pensioner's partner following the pensioner's death that is identical to the proportion of the pensioner's fortnightly pension entitlement that is converted.