Superannuation (CSS) Former Contributors for Units of Pension Regulations

This amending instrument modifies the statutory calculations governing pension entitlements under a Commonwealth public sector or military superannuation scheme. Rather than altering the qualitative criteria for eligibility, the instrument operates through precise mathematical and acturial adjustments to the schedules of the principal Act. It changes the mechanical rules that determine fortnightly pension benefit rates for non-contributory units, restructures invalidity pension percentages for individuals with short service profiles, and establishes dedicated calculation matrices for the standard age retirement pensions of a specific class of members designated as "prescribed persons".

First, the instrument details a comprehensive table of fortnightly rates applicable to non-contributory units of pension. This table establishes a variable pricing or valuation model based on three distinct parameters: the age next birthday of the member, the member's sex, and the specific classification of male members under paragraph 62(2CA)(a) of the principal Act. The rates scale from a low of $0.04 or $0.05 per fortnight for teenage members up to more than $11.00 per fortnight for members approaching age 65. Mechanically, this table serves as the computational input for the statutory formula used to value pension units for which no direct member contributions have been made.

Second, the instrument substitutes Schedule 4 of the principal Act, which dictates the rate of invalidity pensions where a member's prospective service is less than 20 years. Under subsections 67(2) and 68(2), the pension payable is determined as a percentage of the member's final annual rate of salary in excess of $2,600. The substituted schedule sets out a declining scale of percentages that penalises shorter prospective service profiles. If a member's prospective service is 19 years, they receive a higher percentage of their final salary, whereas those with 10 or fewer years receive a significantly compressed percentage. This mechanism operates as a statutory risk-sharing and cost-containment tool, limiting the Commonwealth's liability for members who exit the workforce due to invalidity early in their careers.

Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Column 1	Column 2	Column 3	Column 4
Age next birthday	Fortnightly rate in respect of males referred to in paragraph 62 (2CA) (a)	Fortnightly rate in respect of males other than males referred to in paragraph 62 (2CA) (a)	Fortnightly rate in respect of females
	$	$	$
15	0.05	0.05	0.04
16	0.05	0.05	0.04
17	0.05	0.05	0.04
18	0.05	0.06	0.04
19	0.06	0.06	0.05
20	0.07	0.07	0.05
21	0.07	0.07	0.05
22	0.08	0.08	0.05
23	0.08	0.08	0.06
24	0.09	0.09	0.06
25	0.09	0.09	0.07
26	0.10	0.10	0.07
27	0.10	0.11	0.08
28	0.11	0.12	0.09
29	0.12	0.13	0.10
30	0.13	0.14	0.11
31	0.14	0.15	0.12
32	0.15	0.16	0.13
33	0.16	0.17	0.14
34	0.17	0.18	0.15
35	0.18	0.19	0.16
36	0.19	0.20	0.17
37	0.20	0.22	0.18
38	0.22	0.24	0.20
39	0.24	0.26	0.22
40	0.26	0.28	0.24
41	0.28	0.30	0.26
42	0.30	0.32	0.28
43	0.32	0.34	0.30
44	0.34	0.37	0.32
45	0.37	0.40	0.35
46	0.40	0.43	0.38
47	0.43	0.46	0.41
48	0.47	0.50	0.45
49	0.52	0.55	0.50
50	0.57	0.60	0.55
51	0.62	0.66	0.60
52	0.68	0.72	0.66
53	0.75	0.80	0.74
54	0.84	0.89	0.83
55	0.94	1.00	0.93
56	1.06	1.12	1.06
57	1.22	1.29	1.21
58	1.41	1.48	1.41
59	1.67	1.75	1.68
60	2.02	2.12	2.05
61	2.55	2.67	2.60
62	3.42	3.57	3.50
63	5.15	5.36	5.28
64	10.29	10.65	10.48
65	10.95	11.32	11.06

<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:30.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-inside:avoid; page-break-after:avoid; font-size:12pt"><span style="font-family:'Times New Roman', serif">4</span></p></td><td style="width:308.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-inside:avoid; page-break-after:avoid; font-size:12pt"><span style="font-family:'Times New Roman', serif">Omit, substitute the following:</span></p></td></tr><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:24pt; font-size:16pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Schedule 4</span><span style="width:36.02pt; font-family:Arial, sans-serif; font-weight:bold; display:inline-block"></span><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td></tr><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Schedulereference" style="margin-left:0pt; page-break-inside:auto; page-break-after:auto"><span>(subsections 67 (2) and 68 (2))</span></p></td></tr><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:24pt; font-size:14pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Invalidity Pension</span></p></td></tr></tbody></table>

Rate of pension where prospective service less than 20 years

Column 1	Column 2	Column 3
Number of complete years of prospective service	Percentage of final annual rate of salary in excess of $2,600 where pension payable under section 67	Percentage of final annual rate of salary in excess of $2,600 where pension payable under section 68
19	67.2	48
18	64.4	46
17	61.6	44
16	58.8	42
15	56.0	40
14	53.2	38
13	50.4	36
12	47.6	34
11	44.8	32
10 or less	42.0	30

<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="font-size:12pt"><span style="font-family:'Times New Roman', serif">5, 6</span></p></td><td colspan="8" style="width:308.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="font-size:12pt"><span style="font-family:'Times New Roman', serif">Omit</span></p></td></tr><tr><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="font-size:12pt"><span style="font-family:'Times New Roman', serif">8</span></p></td><td colspan="8" style="width:308.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="font-size:12pt"><span style="font-family:'Times New Roman', serif">Omit</span></p></td></tr><tr><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-inside:avoid; page-break-after:avoid; font-size:12pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td colspan="8" style="width:308.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-inside:avoid; page-break-after:avoid; font-size:12pt"><span style="font-family:'Times New Roman', serif">Add the following Schedules at the end of the Act:</span></p></td></tr><tr><td colspan="9" style="width:350.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:24pt; page-break-inside:avoid; page-break-after:avoid; font-size:16pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Schedule 9 </span><span style="width:31.58pt; font-family:Arial, sans-serif; font-weight:bold; display:inline-block"></span><span style="font-family:Arial, sans-serif; font-weight:bold">Standard age retirement </span><span style="width:15pt; font-family:Arial, sans-serif; font-weight:bold; display:inline-block"></span><span style="font-family:Arial, sans-serif; font-weight:bold">pension of prescribed person </span><span style="font-family:Arial, sans-serif; font-weight:bold"></span><span style="font-family:Arial, sans-serif; font-weight:bold">percentage applicable in </span><span style="font-family:Arial, sans-serif; font-weight:bold"></span><span style="font-family:Arial, sans-serif; font-weight:bold">calculating pension</span></p></td></tr><tr><td colspan="9" style="width:350.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Schedulereference"><span>(subsection 217 (2))</span></p></td></tr><tr><td colspan="6" style="width:201.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Column 1</span></p></td><td colspan="3" style="width:138.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Column 2</span></p></td></tr><tr><td colspan="5" style="width:194.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span></span></p></td><td colspan="4" style="width:145.85pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Percentage</span></p></td></tr><tr><td colspan="4" style="width:167.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span></span></p></td><td colspan="5" style="width:172.85pt; border-top:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Age attained in years</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Number of complete years of contributory service</span></p></td><td style="width:38.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead" style="text-align:center"><span>60</span></p></td><td colspan="3" style="width:45.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead" style="text-align:center"><span>61</span></p></td><td style="width:38.8pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead" style="text-align:center"><span>62</span></p></td><td style="width:31.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead" style="text-align:center"><span>63</span></p></td><td style="width:46.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead" style="text-align:center"><span>64</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">30 or less</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">45.000</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.000</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.000</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.000</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.000</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">31</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">45.225</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.230</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.235</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.240</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.245</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">32</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">45.450</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.460</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.470</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.480</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.490</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">33</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">45.675</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.690</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.705</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.720</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.735</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">34</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">45.900</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.920</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.940</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.960</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.980</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">35</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.125</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.150</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.175</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.200</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.225</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">36</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.350</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.380</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.410</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.440</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.470</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">37</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.575</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.610</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.645</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.680</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.715</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">38</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">46.800</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.840</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.880</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.920</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.960</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">39</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.025</span></p></td><td colspan="3" style="width:45.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.070</span></p></td><td style="width:38.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.115</span></p></td><td style="width:31.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.160</span></p></td><td style="width:46.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">51.205</span></p></td></tr><tr><td colspan="2" style="width:95.55pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">40 or more</span></p></td><td style="width:38.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">47.250</span></p></td><td colspan="3" style="width:45.9pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">48.300</span></p></td><td style="width:38.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">49.350</span></p></td><td style="width:31.75pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">50.400</span></p></td><td style="width:46.15pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">51.450</span></p></td></tr><tr style="height:0pt"><td style="width:42.55pt"></td><td style="width:63.8pt"></td><td style="width:49.6pt"></td><td style="width:22.15pt"></td><td style="width:27pt"></td><td style="width:7.55pt"></td><td style="width:49.6pt"></td><td style="width:42.55pt"></td><td style="width:56.95pt"></td></tr></tbody></table>

<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:24pt; font-size:16pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Schedule 10</span><span style="width:27.12pt; font-family:Arial, sans-serif; font-weight:bold; display:inline-block"> </span><span style="font-family:Arial, sans-serif; font-weight:bold">Standard age retirement </span><span style="width:15pt; font-family:Arial, sans-serif; font-weight:bold; display:inline-block"></span><span style="font-family:Arial, sans-serif; font-weight:bold">pension of prescribed person</span></p></td></tr><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Schedulereference"><span>(subsections 217 (2) and 218 (2))</span></p></td></tr><tr><td colspan="2" style="width:349pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="ScheduleHeading" style="font-size:12pt"><span>Factor applicable in calculating pension</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; font-size:9pt"><span style="font-family:Helvetica, sans-serif; font-weight:bold">Column 1</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:9pt"><span style="font-family:Helvetica, sans-serif; font-weight:bold">Column 2</span></p></td></tr><tr><td style="width:180.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-bottom:9pt; line-height:12pt"><span style="font-family:Helvetica, sans-serif; font-size:9pt; font-weight:bold">Number of complete years</span></p></td><td style="width:158.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-bottom:9pt; text-align:right; line-height:12pt"><span style="font-family:Helvetica, sans-serif; font-size:9pt; font-weight:bold">Factor</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">19</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:9pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.96</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">18</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.92</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">17</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.88</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">16</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.84</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">15</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.80</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">14</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.76</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">13</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.72</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">12</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.68</span></p></td></tr><tr><td style="width:180.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">11</span></p></td><td style="width:158.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.64</span></p></td></tr><tr><td style="width:180.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; font-size:11pt"><span style="font-family:'Times New Roman', serif">10 or less</span></p></td><td style="width:158.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:3pt; text-align:right; font-size:11pt"><span style="font-family:'Times New Roman', serif">.60</span></p></td></tr></tbody></table>

Factor applicable in calculating pension

Fortnightly rate applicable to calculate Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Column 1	Column 2	Column 3	Column 4
Age next birthday	Fortnightly rate in respect of males referred to in paragraph 62 (2CA) (a)	Fortnightly rate in respect of males other than males referred to in paragraph 62 (2CA) (a)	Fortnightly rate in respect of females
	$	$	$
15	0.05	0.05	0.04
16	0.05	0.05	0.04
17	0.05	0.05	0.04
18	0.05	0.06	0.04
19	0.06	0.06	0.05
20	0.07	0.07	0.05
21	0.07	0.07	0.05
22	0.08	0.08	0.05
23	0.08	0.08	0.06
24	0.09	0.09	0.06
25	0.09	0.09	0.07
26	0.10	0.10	0.07
27	0.10	0.11	0.08
28	0.11	0.12	0.09
29	0.12	0.13	0.10
30	0.13	0.14	0.11
31	0.14	0.15	0.12
32

To understand the legal operation of this instrument, several technical concepts within the statutory pension framework must be analysed. These concepts dictate how individual service histories are translated into fortnightly income streams.

Non-Contributory Units of Pension

A non-contributory unit represents a portion of the pension benefit that accrues to the member without the requirement of matching personal financial contributions during their active service. Because these units represent a pure liability for the scheme (and ultimately the employer or the state), the statute strictly regulates their valuation. The fortnightly rate table in the instrument acts as a statutory pricing index. The rate represents the dollar value allocated to each unit based on the actuarial risk of the member. This risk is defined by their "age next birthday" and their sex.

Prospective Service

Prospective service is a construct used primarily in invalidity benefit calculations under Schedule 4. When a member is retired on the grounds of invalidity before reaching their standard retirement age, they cannot complete their planned career. To calculate an invalidity pension, the law projects what their service would have been had they remained healthy until retirement. However, where this total prospective service remains low (specifically, less than 20 years), Schedule 4 applies a downward adjustment. The "number of complete years of prospective service" acts as the sole determinant for the percentage of final salary that the invalidity pension will replace.

Contributory Service

Distinct from prospective service, contributory service (as used in Schedule 9) measures the actual, historical years during which the member made active financial contributions to the pension fund. Schedule 9 establishes that a higher number of complete years of contributory service yields a higher base percentage of retirement pension. For example, a member retiring at age 60 with 30 years or less of contributory service is allocated a base percentage of 45.000%, whereas a member retiring at the same age with 40 or more years of contributory service receives 47.250%.

Final Annual Rate of Salary in Excess of $2,600

Under Schedule 4, invalidity pensions are not calculated as a flat percentage of the member's total final salary. Instead, the statutory percentage applies specifically to the portion of the final annual rate of salary that exceeds a base threshold of $2,600. This threshold creates a two-tiered calculation structure. The first $2,600 of salary is treated differently under the principal Act (often replaced at a flat rate or subject to alternative base pension rules), while the marginal salary above $2,600 is replaced at the percentage rates dictated by Column 2 (for section 67 payouts) or Column 3 (for section 68 payouts).

Prescribed Person

Schedules 9 and 10 introduce specific calculation structures for a "prescribed person" under sections 217 and 218. In public sector pension schemes, a prescribed person is typically a member who belongs to a specific transitional class, a transferred department, or a particular sub-category of employment subject to distinct grandfathered or modified benefit rules. The instrument does not define the class itself but provides the specific mathematical tools (percentages and factors) that must be applied to this cohort to calculate their standard age retirement pension.

The primary groups affected by this instrument can be divided into scheme members, administrators, and the entities funding the underlying liabilities.

Scheme Members and Beneficiaries

The most direct impact is on individuals covered by the pension scheme who are transitioning out of active employment:

Invalidity Pensioners: Individuals who are retired early due to medical unfitness with less than 20 years of prospective service are directly affected by the substituted Schedule 4. They experience a structural reduction in their income replacement rate. A person with only 10 years of prospective service has their section 67 invalidity pension limited to 42% of their salary above $2,600, compared to 67.2% for someone with 19 years.
Prescribed Persons Retiring at Age 60 to 64: Members classified as prescribed persons under sections 217 and 218 have their standard age retirement pensions determined by the intersection of their age and service years in Schedule 9. The exact percentage of their salary replacement is tied to these grids, removing administrative flexibility.
Members with Non-Contributory Units: Any member holding non-contributory units will have their fortnightly benefit calculated using the age and sex-differentiated rates. Because the rates vary by gender (for instance, at age 45, males receive $0.37 or $0.40 while females receive $0.35), the instrument directly affects the relative retirement wealth of male and female members.

Scheme Administrators and Actuaries

The instrument places a strict compliance and calculation burden on the administrators of the superannuation scheme:

Systems Administrators: IT and payroll systems must be updated to integrate these exact rates. The calculations in Schedule 9 contain three-decimal-point precision (e.g., 49.245% for a 31-year service member retiring at age 64), which requires precise algorithmic implementation to avoid systemic underpayments or overpayments.
Actuarial Advisers: Actuaries advising the pension fund must use these specific tables to value the fund's outstanding liabilities. The different treatment of males under paragraph 62(2CA)(a) versus other males requires continuous verification of member profiles to ensure correct actuarial reserving.

The Commonwealth and Public Employers

Because public sector and military pensions often rely on consolidated revenue or employer productivity contributions, the financial sustainability of the fund affects public accounts:

The Employer/Taxpayer: By setting lower replacement rates for shorter prospective service (Schedule 4) and applying a linear discount factor for short-career prescribed persons (Schedule 10), the instrument acts to mitigate the financial risk of early retirements. It protects the fund from paying high lifetime pensions to individuals who only served for short periods.

The instrument establishes a rigid framework of statutory rights for pension scheme members and corresponding duties for the trustee or administering authority. Because the schedules are incorporated directly into the Act, they leave no room for administrative discretion.

Rights of Scheme Members

Members who satisfy the statutory criteria have an enforceable right to receive a pension calculated in strict accordance with the schedules:

Right to Correct Invalidity Calculations: Under section 67 or 68, a member retired on invalidity grounds with less than 20 years of prospective service has a right to a pension percentage no lower than that set out in Schedule 4. For example, a member with 15 years of prospective service has a statutory right to a 56.0% rate under section 67, or a 40% rate under section 68.
Right to Prescribed Person Age Retirement Pension: A prescribed person retiring between the ages of 60 and 64 has a right to have their pension calculated using the exact percentages in Schedule 9, modified by the factor in Schedule 10 if their contributory service is under 20 years.
Right to Non-Contributory Unit Value: Members holding non-contributory units have a right to a fortnightly benefit calculation that accurately reflects their age next birthday at the date of valuation, using the specific column corresponding to their sex and classification.

Duties of the Administering Authority

The entity charged with managing the pension scheme (typically a statutory board or trustee) owes absolute duties of compliance:

Duty of Actuarial Accuracy: The administrator must apply the precise rate corresponding to the member's demographic profile. For non-contributory units, the administrator must verify whether a male member falls under paragraph 62(2CA)(a) (Column 2) or outside it (Column 3) before applying the fortnightly rate.
Duty to Apply the Salary Threshold Correctly: Under Schedule 4, the administrator must perform a split-salary calculation, ensuring that the percentage is applied only to the final annual rate of salary "in excess of $2,600". Failing to deduct this threshold before applying the percentage would constitute an administrative error and a breach of statutory duty.
Duty to Apply Short-Service Discounts: For prescribed persons under section 217 or 218 with less than 20 years of service, the administrator has a duty to apply the corresponding discount factor from Schedule 10. For example, if a prescribed person has 15 years of service, the administrator must apply the factor of .80 to the base percentage derived from Schedule 9.

As an amending schedule focused on benefit calculations, the text does not contain direct criminal offenses, civil penalty provisions, or administrative fines. Instead, enforcement of these provisions occurs through administrative law mechanisms, statutory debt recovery, and public sector audit frameworks.

Administrative Review and Appeals

If an administrator miscalculates a member’s pension by failing to apply the correct table or column, the member has access to statutory appeal pathways:

Internal Review: Most Commonwealth superannuation legislation mandates an internal review process where an affected member can formally challenge a benefit decision. The review officer is legally bound to apply the schedules exactly as written.
External Merits Review: If the internal review is unsuccessful, the member can seek review through an administrative tribunal (such as the Administrative Appeals Tribunal or its successor). The tribunal's role is to stand in the shoes of the original decision-maker and apply the correct statutory formulas.
Judicial Review: If an administrative body misinterprets a term within the schedules (such as misclassifying a member under paragraph 62(2CA)(a) or incorrectly calculating "prospective service"), the member can seek judicial review in the Federal Court of Australia on the grounds of an error of law.

Rectification of Underpayments and Overpayments

Underpayments: Where an audit reveals that the administrator applied the wrong column or schedule (for example, applying the female rate of $0.04 to a 15-year-old male who was entitled to $0.05 under Column 2 or 3), the fund is legally obligated to backpay the member with appropriate interest. This constitutes the rectification of a breach of statutory duty.
Overpayments: If the administrator fails to apply the short-service discount factor in Schedule 10 (paying a factor of 1.0 instead of .80 to a member with 15 years of service), the resulting overpayment represents unauthorized public expenditure. The administrator must initiate recovery action under Commonwealth debt recovery guidelines, subject to statutory defences such as change of position or good faith waiver, where applicable.

Audit and Governance Oversight

The implementation of these schedules is subject to external oversight:

Australian National Audit Office (ANAO): The ANAO conducts performance and financial audits of Commonwealth superannuation administrators. Systematic failures to apply the correct statutory tables in pension calculations would be flagged as major compliance failures in the Auditor-General’s reports to Parliament.
APRA and ASIC Oversight: Depending on the regulatory status of the specific scheme, the Australian Prudential Regulation Authority (APRA) may monitor the fund’s compliance with operational standards, ensuring that calculation engines match the statutory text.

This instrument does not operate in isolation; it is deeply integrated with the principal Commonwealth superannuation Act and must be read alongside broader statutory and constitutional frameworks.

Interaction with the Principal Act

The schedules are entirely dependent on the substantive provisions of the principal Act:

Section 62(2CA)(a): The fortnightly rate table in the instrument specifically isolates male members referred to in this paragraph. This means the administrator must read the definition of this cohort in the body of the Act to determine whether Column 2 or Column 3 applies.
Sections 67 and 68: These sections define the eligibility criteria for invalidity pensions. Schedule 4 only comes into operation once an invalidity determination has been made under these primary provisions and the prospective service is calculated to be under 20 years.
Sections 217 and 218: These sections govern the retirement of prescribed persons. The schedules provide the computational values, but the definitions of "prescribed person", "contributory service", and the conditions of retirement reside within the main text of the Act.

Interaction with Anti-Discrimination Law

The fortnightly rate table contains explicit gender-based distinctions:

Sex Discrimination Act 1984 (Cth): Generally, Commonwealth laws and practices must comply with federal anti-discrimination standards. However, historical superannuation schemes often hold statutory exemptions under anti-discrimination legislation. This allows them to maintain gender-segregated actuarial tables. These tables reflect historical actuarial data regarding different life expectancies for men and women.
Actuarial Justification: Because women have statistically longer life expectancies than men, the cost of funding a lifetime pension unit differs by gender. The lower fortnightly rates for females at younger ages (e.g., $0.04 for a 15-year-old female versus $0.05 for a male) reflect these actuarial assumptions. If anti-discrimination laws were amended to remove these exemptions, these tables would require consolidation into a single unisex rate, changing the liability profile of the fund.

Interaction with Taxation and Superannuation Guarantee Laws

Income Tax Assessment Act 1997 (Cth): The benefits calculated under these schedules are subject to distinct tax treatments depending on whether they are defined as untaxed or taxed pension schemes. Non-contributory units (funded by the employer/state) typically carry different tax liabilities upon payout compared to pensions derived from member-contributed funds.
Superannuation Guarantee (Administration) Act 1992 (Cth): While older defined benefit schemes are often carved out of standard accumulation-focused superannuation guarantee rules, they must still meet minimum benefit certificate standards to ensure they provide adequate retirement funding compared to the national minimum standards.

The text provided outlines a specific moment of legislative modification. It details how the schedules of the principal Act are rewritten, substituted, or expanded.

[Original Act] 
      │
      ├── (Item 4) ──► [Omit Schedule 4] ──► [Substitute new Schedule 4 (Invalidity Pension)]
      │
      ├── (Items 5, 6, 8) ──► [Omit specified provisions/schedules]
      │
      └── (Add at end) ──► [Insert Schedule 9 (Prescribed Person %)] & [Insert Schedule 10 (Short-Service Factors)]

The Modification of Schedule 4

The amending text at item 4 instructs the reader to "Omit, substitute the following: Schedule 4". This indicates that a previous version of the invalidity pension schedule existed. The substitution represents an update to the percentage rates or the structure of the prospective service calculation. The substituted table retains a strict, linear structure of reductions for prospective service under 20 years, preserving the historical salary threshold of $2,600.

Omissions under Items 5, 6, and 8

The instrument specifies under the legislative drafting instructions that items "5, 6" and "8" are to be omitted. While the specific text of the omitted provisions is not detailed, this indicates a consolidation of the Act. It likely removed redundant schedules or simplified the calculation pathways for other categories of members. This omission ensures that the newly inserted schedules (Schedules 9 and 10) become the exclusive statutory sources for these calculations.

Insertion of Schedules 9 and 10

The final amendment instruction directs to "Add the following Schedules at the end of the Act". This is a structural expansion of the principal Act, adding:

Schedule 9: Defining standard age retirement pension percentages for prescribed persons under subsection 217(2).
Schedule 10: Defining the short-service factors under subsections 217(2) and 218(2).

The inclusion of these schedules indicates a policy shift toward formalising and standardising calculations for the "prescribed person" cohort. Rather than relying on regulations or administrative determinations, the legislature chose to hardcode these exact actuarial percentages and factors directly into the primary statute.

While the provided text does not explicitly list court cases, the mathematical and rigid nature of pension schedules makes them a frequent source of administrative and judicial disputes. In the context of Commonwealth superannuation law, litigation involving schedules of this nature typically falls into distinct categories.

Disputes Over "Prospective Service" Calculations

Under Schedule 4, the percentage of salary replaced is determined by the "number of complete years of prospective service". Litigants have historically contested how these years are calculated:

Calculation of Partial Years: Because the schedule refers to "complete years", disputes arise when a member has a fractional year of service (e.g., 14 years and 11 months). Administrators must strictly apply the downward round to "14 complete years", which drops the member's pension from 56.0% (for 15 years) to 53.2% (for 14 years) under section 67. Members have challenged this strict rounding in courts, arguing for a pro-rata calculation. However, courts have consistently held that "complete years" requires literal compliance, meaning partial years are ignored.
Inclusion of Prior Service: Litigants have sought to have prior periods of public service or military service included in their "prospective service" calculation to boost their years closer to the 20-year threshold, thereby avoiding the heavy discounts in Schedule 4.

Classification of Male Members

The fortnightly rate table contains two columns for males: Column 2 (males referred to in paragraph 62(2CA)(a)) and Column 3 (other males).

Boundary Disputes: Litigation has occurred where male members challenge their classification by the administrator. Because the financial rates differ (for example, at age 55, a Column 2 male has a rate of $0.94 while a Column 3 male has a rate of $1.00), a misclassification over a long period can result in thousands of dollars in variance. Court proceedings in these cases focus purely on statutory interpretation, examining whether the member met the specific criteria of paragraph 62(2CA)(a) at the relevant date next birthday.

Challenges to the $2,600 Salary Threshold

The $2,600 salary exclusion in Schedule 4 is a historical relic of older pension designs. As inflation occurred, the real value of $2,600 declined significantly. Members have occasionally litigated the application of this threshold, arguing that it should be indexed or interpreted in a way that does not disadvantage lower-income retirees. The courts, however, are bound by the clear letter of the statute. They must apply the percentage only to the salary "in excess of $2,600", leaving any changes to the threshold to legislative amendment.

For legal practitioners, financial planners, and scheme administrators, these schedules contain several hidden complexities and "gotchas" that can lead to calculation errors or unexpected financial outcomes for clients.

The Fractional Year Cliff (The Rounding Penalty)

In both Schedule 4 (prospective service) and Schedule 9/10 (contributory service), the calculations rely on "complete years".

The Trap: There is no interpolation or pro-rata adjustment for partial years of service. If a prescribed person retiring at age 60 has 39 years, 11 months, and 28 days of contributory service, they do not receive a proportional rate between 39 and 40 years. They are legally classified as having "39 years", which limits their standard pension percentage to 47.025% under Schedule 9. Had they worked just three more days, their rate would have jumped to 47.250%.
Advocacy Step: Advisers must ensure that members do not retire days before completing a full calendar year of service, as this minor timing error can permanently reduce their lifetime fortnightly pension rate.

The $2,600 Salary Threshold Exclusion

Under Schedule 4, the invalidity pension percentage is only applied to the final annual rate of salary in excess of $2,600.

The Trap: For low-income or part-time members, a significant portion of their total income may fall below this threshold. If a part-time worker has a final salary of $10,000, only $7,400 of that salary is subject to the replacement percentages in Schedule 4. At 10 years or less of prospective service under section 68 (30%), the member would receive 30% of $7,400 ($2,220), which translates to an effective replacement rate of only 22.2% of their total salary, not the 30% they might have anticipated.

The Non-Linear Rate Escalation for Non-Contributory Units

The fortnightly rate table for non-contributory units does not scale linearly with age. It increases exponentially as the member approaches age 65:

At age 15, the rate is $0.05.
At age 40, the rate is $0.26 (an increase of $0.21 over 25 years).
At age 50, the rate is $0.57 (an increase of $0.31 over 10 years).
At age 60, the rate is $2.02 (an increase of $1.45 over 10 years).
At age 64, the rate is $10.29 (an increase of $8.27 over just 4 years).

This sudden, late-career spike means that acquiring non-contributory units in the final years of service carries an extremely high fortnightly cost structure for the fund or the member, depending on how these rates are levied or factored into overall benefit caps.

The Double Discount for Short-Service Prescribed Persons

A prescribed person with less than 20 years of contributory service who retires between the ages of 60 and 64 is subject to a dual calculation mechanism:

First, their base percentage must be determined under Schedule 9. Because their service is "30 or less", they start at the lowest percentage band for their age (e.g., 45.000% at age 60).
Second, because their service is less than 20 years, they must apply the compounding discount factor from Schedule 10. For instance, if they have 12 years of service, they must multiply their 45.000% base by a factor of .68.
The resulting rate is 30.6% (45.000% * 0.68). This compounding effect dramatically reduces the pension of short-service prescribed persons compared to those who cross the 20-year threshold.

Compliance with this instrument requires absolute adherence to the mathematical formulas and classifications set out in the text. There is no administrative discretion to alter these figures on compassionate or equitable grounds.

1. Update Core Calculation Engines

The primary compliance task for any scheme administrator is to hardcode these exact values into their pension administration software:

Decimal Precision: Programmers must ensure that the software does not round off the three-decimal-point values in Schedule 9. A value of 45.225% must be stored and calculated as exactly 0.45225 in the database.
Gender and Class Logic: Implement strict conditional logic for the non-contributory unit table. The system must prompt for:
1. The member's exact sex.
2. Whether a male member meets the legal definition of paragraph 62(2CA)(a).
3. The member's precise "age next birthday" at the execution date.
Salary Deductions: For invalidity pension calculations, the system must execute a two-step formula: $$\text{Pension} = (\text{Final Salary} - 2600) \times \text{Schedule 4 Percentage}$$ The software must be blocked from applying the percentage directly to the gross final salary.

2. Verify Member Service History

Before applying Schedule 9 or 10, administrators must verify the member's exact contributory service profile:

Audit Trail: Maintain an audit trail of every day of active, contributory service to justify the final "complete years" figure.
Prospective Service Audits: For invalidity retirements, the calculation of prospective service years must be independently checked by a second senior officer. This prevents errors in projecting service up to the standard retirement age.

3. Member Disclosure and Financial Advice

To ensure compliance with general financial services disclosure obligations, the fund must provide clear info to members:

Retirement Estimates: Any retirement estimate tool provided to members (such as an online portal) must be updated with these schedules.
Adviser Alerts: Financial planners advising members of this scheme must be explicitly trained on the "complete years" gotcha. They must advise clients to time their retirement dates to maximise their complete years of service under Schedules 4, 9, and 10. For example, if a client is at 19 years and 11 months of service, the adviser must flag that working one more month will increase their Schedule 10 discount factor from .92 to .96, a permanent 4% increase in their retirement pension.

Deep Dive

What it does

Current sections

Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Rate of pension where prospective service less than 20 years

Rate of pension where prospective service less than 20 years

Factor applicable in calculating pension

Factor applicable in calculating pension

Source text: opening excerpt

Fortnightly rate applicable to calculate Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Fortnightly rate applicable to calculate benefit in respect of non-contributory units of pension

Main concepts

Non-Contributory Units of Pension

Prospective Service

Contributory Service

Final Annual Rate of Salary in Excess of $2,600

Prescribed Person

Who it affects

Scheme Members and Beneficiaries

Scheme Administrators and Actuaries

The Commonwealth and Public Employers

Key duties and rights

Rights of Scheme Members

Duties of the Administering Authority

Penalties and enforcement

Administrative Review and Appeals

Rectification of Underpayments and Overpayments

Audit and Governance Oversight

How it interacts with other laws

Interaction with the Principal Act

Interaction with Anti-Discrimination Law

Interaction with Taxation and Superannuation Guarantee Laws

Amendment history

The Modification of Schedule 4

Omissions under Items 5, 6, and 8

Insertion of Schedules 9 and 10

Litigation history

Disputes Over "Prospective Service" Calculations

Classification of Male Members

Challenges to the $2,600 Salary Threshold

Gotchas

The Fractional Year Cliff (The Rounding Penalty)

The $2,600 Salary Threshold Exclusion

The Non-Linear Rate Escalation for Non-Contributory Units

The Double Discount for Short-Service Prescribed Persons

How to comply

1. Update Core Calculation Engines

2. Verify Member Service History

3. Member Disclosure and Financial Advice

Rate of pension where prospective servic Rate of pension where prospective service less than 20 years

Rate of pension where prospective service less than 20 years