61RDReduction of benefit

#### 61RD Reduction of benefit 61RD Reduction of benefit > > (1) This section applies to the benefits provided under the following provisions— > > > > > (a) section 27 (Amount of pension payable on retirement), > > > > > (b) section 28A (Pension on retirement before reaching 60 years of age), > > > > > (c) section 28AA (Pension on retirement before age 60—component pension), > > > > > (d) section 29 (Breakdown pensions), > > > > > (e) section 30 (Pensions to spouse or de facto partner on death of contributor), > > > > > (f) section 37 (Retrenchment benefits payable to an employee who is retrenched after completing 10 years’ service), > > > > > (g) section 37A (Retrenchment benefits payable to contributors having not less than 3 years’ contributing service), > > > > > (h) section 38A (Withdrawal benefit), > > > > > (i) section 47D (Benefits payable in respect of reduced value units), > > > > > (j) Division 3A of Part 4 (Preserved benefits), > > > > > (k) Part 3B (Conversion of existing entitlements). > > > (2) For the purposes of section 61RA, the reduction in a benefit to which this section applies (other than a benefit under section 38A or 47D) is the amount calculated in accordance with the following formula— > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g42.gif) > > > (3) For the purposes of section 61RA, the reduction in a benefit under section 38A (other than a benefit arising as a result of the death of a person) is the amount calculated in accordance with the following formula— > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g43.gif) > > > (4) For the purposes of section 61RA, the reduction in a benefit under section 47D is the amount calculated in accordance with the following formula— > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g44.gif) > > > (5) In this section— > > > > R represents the amount of the reduction. > > > > M is calculated in accordance with subsection (6) and represents the amount of the pension or lump sum being reduced. > > > > A represents the portion of the benefit payable from the appropriate employer’s reserve in accordance with section 33B (2) (b). > > > > B represents the relevant amount in respect of the benefit determined in accordance with section 33B (3). > > > > Q represents the sum of such number of terms as is determined in accordance with the formula prescribed by subsection (7) to reflect the number of times the rate of tax has changed. > > > > T represents the total amount of benefit derived under section 47D. > > > (6) In subsection (5), the symbol “M” represents— > > > > > (a) in the case of a benefit arising under section 27, 28A, 28AA or 29—the benefit that would be payable under that section, but for section 61RA and this section, or > > > > > (b) in the case of a benefit arising under section 30 in respect of a contributor who dies before reaching the age of 60 in the case of a man, or the maturity age in the case of a woman—two-thirds of the pension that, but for section 61RA and this section, would have been payable to the contributor under section 29 if the contributor had been retired immediately before death, or > > > > > (c) in the case of a benefit arising under section 30 in respect of a contributor who dies on or after reaching the age of 60 in the case of a man, or the maturity age in the case of a woman—two-thirds of the pension that, but for section 61RA and this section, would have been payable under section 27 if the contributor had retired, or had been retired, immediately before death, or > > > > > (d) in the case of a benefit arising under Part 3B or section 37 or 37A—the lump sum benefit that would be payable under the provision concerned but for section 61RA and this section, or > > > > > (e) in the case of a benefit arising under Division 3A of Part 4—the total component pension preserved in accordance with section 52A. > > > (7) For the purposes of the symbol “Q” in subsection (5), the formula prescribed by this subsection is— > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g45.gif) > > where— > > > > C represents the number of days of continuous contributory service that the person in respect of whom the pension is payable has had with one or more employers in each period during which the rate of tax payable on employer contributions is L. > > > > D represents— > > > > > (a) in the case of benefits arising under section 29 or 30—the number of days of continuous contributory service that the person in respect of whom the pension is payable has had with one or more employers during the period beginning with the date when the person last became a contributor and ending with the later of the exit date and the date on which the person would have been eligible to retire under section 21 (1) if the person’s employment had continued to that date, or > > > > > (b) in all other cases—the number of days of continuous contributory service that the person in respect of whom the pension is payable has had with one or more employers during the period beginning with the date on which the person last became a contributor and ending with the person’s exit day. > > > > L represents the rate of tax payable on employer contributions set out in the relevant Commonwealth taxation law or such lesser rate as may be determined by STC having regard to the most recent actuarial valuation of the scheme. > > > (8) For the purposes of the symbols “C” and “D” in subsection (7), the period of a person’s continuous contributory service does not include any period during which the person is treated by section 48 (Breakdown pensioner held to be on leave) as being on leave without pay. > > > (9) For the purposes of sections 31 and 52F, the benefit that emerges upon the death of the member is not to be reduced as it would already have been reduced in accordance with section 61RA when the member retired or when the benefit was preserved. > > **s 61RD:** Ins 1992 No 35, Sch 1. Am 1992 No 57, Sch 2; 1993 No 111, Sch 6 (63); 1996 No 39, Sch 4; 1998 No 144, Sch 1.4 \[2\]–\[4\].