52ACalculation of preserved pension components

52A Calculation of preserved pension components

52A Calculation of preserved pension components

(1) Where a person who is retrenched or resigns or is dismissed or discharged from the service of an employer elects to take the benefit of this Division, there shall be calculated, as at the person’s exit day, the employee-contributed pension component, and the employer-financed pension component, in relation to the person.

(2) For the purposes of subsection (1), the employee-contributed pension component in relation to a person shall be calculated in accordance with the following formula—

where—

P1 is the employee-contributed pension component.

EPU is the sum of the following—

(a) ,

(b) ,

(c) UC.

UHn is the number of units of pension for which contributions were payable by the person on the person’s exit day in accordance with the tables of contributions fixed by or under this Act, but excluding—

(a) any such units of pension which are excess units of pension referred to in section 10W (1) and in respect of which no person has any rights in the Fund, and

(b) any such units of pension, being reserve units, for which contributions were being made under section 15A.

Cn is the amount of contributions due for the last contribution period for which contributions were payable by the person before the person’s exit day, in respect of that number of units of pension.

Rn is the relevant amount under subsection (4) in relation to the person for an additional unit of pension on the person’s exit day.

TCB is the total amount paid in respect of instalments payable by the person on or before the person’s exit day for units of pension for which the person contributed in accordance with Division 6 of Part 3 (but deducting therefrom any part of that amount allocated under this Act to the purchase of fully paid up units).

RB is the amount specified in section 10AG (1) as the cost of a unit of pension in relation to the person.