Part 1
Preliminary
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
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Commonwealth legislation
This law prescribes how members' Parliamentary Contributory Superannuation Scheme benefits are valued and divided on separation, converting the MP’s defined‑benefit pension into shareable annuity or lump‑sum outcomes, accounting for actuarial factors and surcharge debt. It applies to current and former federal MPs in that scheme, their ex‑partners, the Finance Department, and family courts/lawyers. It matters because it provides a tailored, equitable method to split often large, complex parliamentary pensions in property settlements.
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Direct links to the current provisions in Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Orders 2004.
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
Part 2 Orders relating to certain amounts and rates
2.01 Scheme value — member spouse with no surcharge debt
2.01A Scheme value — member spouse with surcharge debt
2.02 Annual rate of associate immediate annuity
2.03 Annual rate of associate deferred annuity
2.04 Amount payable if non‑member spouse dies before associate deferred annuity becomes payable
2.05 Commutation of small associate annuity — maximum amount
2.06 Commutation of small associate annuity — lump sum payable on election
2.07 Reduction of associate annuity where original interest is entitlement to associate deferred annuity
2.08 Reduction of standard allowance or annuity
Part 3 Application, saving and transitional provisions
3.01 Amendment made by the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Amendment Orders 2023
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
Part 1 Methods
Part 2 Scheme factors
Schedule 2 Annuity Factors for non‑member spouses
Schedule 3 Annuity Factors for member spouses
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Part 1 Preliminary
1.01 Name of Orders
These Orders are the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Orders 2004.
1.03 Definitions
(1) In these Orders:
Act means the Parliamentary Contributory Superannuation Act 1948.
actuary means a person who is a Fellow or Accredited Member of the Institute of Actuaries of Australia.
family law commencement day means 18 May 2004.
Note Part 1 of these Orders commenced on 18 May 2004.
FL Act means the Family Law Act 1975.
Secretary means the Secretary of the Finance Department.
Note Several other words and expressions used in these Orders have the meaning given by subsection 4 (1) of the Act, including parliamentary allowance.
Note: In this context, member is defined in subsection 4 (1) of the Act to mean a member of either House. A member spouse is also defined in the Act, but uses the word member in a different sense.
(2) An expression that is used in these Orders, and defined in section 22CA of the Act, has the meaning given by that section.
Note Section 22CA of the Act defines expressions including applicable additional percentage, applicable basic percentage, non‑member spouse, operative time and transfer amount. Some expressions are defined in section 22CA to have the same meaning as in the FL Act.
Part 2 Orders relating to certain amounts and rates
2.01 Scheme value — member spouse with no surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time did not show a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 22CA of the Act:
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by the Secretary for this section.
2.01A Scheme value — member spouse with surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time (the statement) showed a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 22CA of the Act, and subject to subsections (3) to (6):
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by the Secretary for this section.
(3) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer amount in section 22CA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2), reduced by the amount of the member spouse’s surcharge debt shown in the statement.
(4) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer factor in section 22CA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2).
(5) If the operative time was before the family law commencement day, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer factor; and
(b) adding to that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) using the result of paragraph (b) to recalculate the transfer factor.
(6) If the operative time was on or after the family law commencement day, and before the day on which this subsection commences, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer amount as part of calculating the transfer factor; and
(b) subtracting from that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
(d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.
2.02 Annual rate of associate immediate annuity
(1) For subsection 22CD (2) of the Act, this section applies if standard allowance or annuity is payable in respect of an original interest.
(2) The annual rate of associate immediate annuity payable to a non‑member spouse to whom subsection 22CD (2) of the Act applies is calculated as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 22CD (2) of the Act requires the rate of associate immediate annuity to be calculated by reference to the transfer amount. |
|---|---|
| Step 2 | Work out an annuity factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse’s gender and age in completed years (represented by y).m is the number of completed months of the non‑member spouse’s age, at the operative time, that are not included in the non‑member spouse’s age in completed years.Fy+1 is the valuation factor mentioned in Table 1 in Schedule 2 that would apply to the person if the person’s age in completed years was one year more than it is at the operative time.Note The associate immediate annuity does not include a reversionary component. |
| Step 3 | Divide the transfer amount identified in step 1 by the annuity factor worked out in step 2.The result is the annual rate of the associate immediate annuity. |
| Step 4 | The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased. |
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the non‑member spouse’s associate immediate annuity.
(3) However, if it is not possible to calculate the annual rate of associate immediate annuity using subsection (2), the annual rate of associate immediate annuity payable to a non‑member spouse to whom subsection 22CD (2) of the Act applies is to be calculated by an actuary appointed by the Secretary for this section.
2.03 Annual rate of associate deferred annuity
(1) For subsection 22CE (1) of the Act, the annual rate at which an associate deferred annuity is to be paid is calculated as follows:
| Step 1 | Identify the transfer amount at the operative time. |
|---|---|
| Step 2A | Increase the transfer amount for any period between the operative time and the time at which the associate deferred annuity first becomes payable, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10 year term.Note The period between the operative time and the time at which the associate deferred annuity first becomes payable may include a number of full financial years, or may occur entirely within a single financial year.Treasury bond rate for bonds with a 10 year termThe Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:(a) if any Treasury bonds with that term were issued on that day — the annual yield on those bonds; or(b) in any other case — the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day. |
| Calculation of increase in transfer amountThe increase in the transfer amount is calculated:(a) at the end of each financial year that occurs between the operative time and the time at which the associate deferred annuity first becomes payable; and(b) immediately before the associate deferred annuity first becomes payable;using the applicable Treasury bond rate for the relevant period worked out in steps 2B, 2C and 2D, and compounded period by period. | |
| Step 2B | First periodIdentify the shorter of:(a) the period between the operative time and the end of the financial year in which the operative time occurs; and(b) the period between the operative time and the time at which the associate deferred annuity first becomes payable.This is the first period.Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the first period. |
| Step 2C | Full financial years (if any)Use this step if a full financial year occurs immediately after the end of the first period and before the associate deferred annuity first becomes payable. This is the second period.Identify the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the second period.Repeat this arrangement for each full financial year after the second period. |
| Step 2D | Final period (if any)Use this step if:(a) there is any period between the end of a financial year and the time at which the associate deferred annuity first becomes payable; and(b) neither step 2B nor step 2C covers that period.This is the final period.Multiply the number of days in the final period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the final period occurs, and divide the result by 365.Round the result to 3 decimal places.The result is the applicable Treasury bond rate for the final period. |
| Step 3 | Work out an annuity factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is:(a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 2, applicable, when the associate deferred annuity first becomes payable, to the non‑member spouse’s gender and age in completed years (represented by y); and(b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 2, applicable, when the associate deferred annuity first becomes payable, to the non‑member spouse’s gender and age in completed years (represented by y).m is the number of completed months of the non‑member spouse’s age, when the associate deferred annuity first becomes payable, that are not included in the non‑member spouse’s age in completed years.Fy+1 is:(a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 2, applicable, when the associate deferred annuity first becomes payable, to the non‑member spouse’s gender and age in completed years if the person’s age in completed years was one year more than it was at that time; and |
| (b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 2, applicable, when the associate deferred annuity first becomes payable, to the non‑member spouse’s gender and age in completed years if the person’s age in completed years was one year more than it was at the operative time.Note The associate deferred annuity does not include a reversionary component. | |
| Step 4 | Divide the transfer amount, as increased in step 2A, by the annuity factor worked out in step 3.The result is the annual rate of associate deferred annuity. |
| Step 5 | The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased. |
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the non‑member spouse’s associate deferred annuity.
(2) However, if it is not possible to work out an annuity factor using step 3 in subsection (1), the annuity factor is to be worked out by an actuary appointed by the Secretary for this section.
2.04 Amount payable if non‑member spouse dies before associate deferred annuity becomes payable
For subsection 22CE (7) of the Act, the amount payable in respect of the death of a non‑member spouse is a lump sum equal to the transfer amount, increased in the way described in step 2A in subsection 2.03 (1) if an associate deferred annuity had become payable at the date of death.
2.05 Commutation of small associate annuity — maximum amount
(1) For paragraph 22CF (1) (a) of the Act, the amount is $1 300.
(2) For paragraph 22CF (1) (b) of the Act, the amount is $1 300.
(3) An amount mentioned in subsection (1) or (2) is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased.
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the amount worked out under this section.
2.06 Commutation of small associate annuity — lump sum payable on election
For paragraph 22CF (3) (b) of the Act, the amount of the lump sum is an amount equal to the transfer amount, increased in the way described in step 2A in subsection 2.03 (1).
2.07 Reduction of associate annuity where original interest is entitlement to associate deferred annuity
For subsection 22CI (2) of the Act, the annual rate of an associate deferred annuity is to be reduced as follows:
| Step 1 | Identify the transfer amount at the operative time. |
|---|---|
| Step 2 | Increase the transfer amount as if it were the lump sum amount calculated in step 2A in subsection 2.03 (1) when the associate deferred annuity becomes payable.Note A lump sum amount is increased under section 2.03 only if there is a period between the operative time and the time at which benefits first become payable. Therefore, in a particular case, it is possible that the transfer amount will not need to be increased in this step. |
| Step 3 | Identify the lump sum value of the associate deferred annuity, as calculated under subsection 22CE (1) of the Act to the date of payment.Note The lump sum value of the associate deferred annuity represents the increased transfer amount worked out under section 2.03.If the lump sum value of the associate deferred annuity has previously been reduced in accordance with these Orders, the reduction must be taken into account. |
| Step 4 | Reduce the lump sum value of the associate deferred annuity as identified in step 3 by the increased transfer amount worked out in step 2. |
| Step 5 | Substitute the reduced lump sum amount worked out in step 4 for the lump sum calculated in step 2A in subsection 2.03 (1), for payment under section 22CE. |
Example for section 2.07
A member spouse has an entitlement to associate deferred annuity. The scheme value of those benefits at the operative time is $300 000.
The agreement served on the Secretary specifies that half of the interest is to be transferred to the non‑member spouse. Therefore, the transfer amount is $150 000.
Step 1 identifies the transfer amount to be $150 000.
Step 2 increases the transfer amount to the day on which the associate deferred annuity becomes payable to the non‑member spouse.
The $150 000 is increased by the bond rate to $160 000.
Step 3 calculates the lump sum value of the associate deferred annuity.
The $300 000 is increased by the bond rate to $320 000.
Step 4 reduces the lump sum value of the associate deferred annuity by the amount calculated in Step 2.
The $320 000 is reduced by $160 000, leaving $160 000.
Step 5 provides that the reduced lump sum value ($160 000) is to be substituted for the lump sum calculated in step 2A in subsection 2.03 (1) to calculate the rate of associate annuity under section 22CE of the Act.
2.08 Reduction of standard allowance or annuity
(1) For subsection 22CJ (1) of the Act, this section applies if standard allowance or annuity is payable to a member spouse in respect of an original interest.
(2) If the allowance is a retiring allowance (including a retiring allowance that forms the basis of an annuity to a surviving spouse under section 19 of the Act), the amount to which the annual rate of retiring allowance, or the annual rate of annuity under section 19 payable in respect of an original interest, is to be reduced is calculated as follows:
| Step 1 | Identify the applicable basic percentage, and each applicable additional percentage, before the operative time. |
|---|---|
| Step 2 | Multiply the applicable basic percentage identified in step 1 by the transfer factor.Multiply each applicable additional percentage identified in step 1 by the transfer factor. |
| Step 3 | Reduce the applicable basic percentage identified in step 1 by the percentage worked out in step 2.Reduce each applicable additional percentage identified in step 1 by the applicable percentage worked out in step 2. |
| Step 4 | Apply the reduced applicable basic percentage after the operative time to the rate of parliamentary allowance.The result is the annual rate of retiring allowance (other than additional retiring allowance), or the annual rate of the annuity under section 19 of the Act based on the retiring allowance. |
| Step 5 | Apply each reduced applicable additional percentage after the operative time to:(a) the rate of the related salary payable in respect of a Minister of State; or(b) the rate of the related allowance by way of salary payable in respect of an office holder.The result is the annual rate of additional retiring allowance, or the annual rate of the annuity under section 19 of the Act based on the additional retiring allowance. |
Note The reduction is to be disregarded in calculating the amount of any annuity payable under section 19AA of the Act in respect of a child of the member spouse after the member spouse’s death.
(3) If the annuity is an associate immediate annuity, the amount to which the annual rate of associate annuity payable in respect of an original interest is to be reduced is calculated as follows:
| Step 1 | Identify the annual rate of associate immediate annuity that was payable in relation to the member spouse immediately before the operative time. |
|---|---|
| Step 2 | Work out an annuity factor (F y+m) based on the member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 3, applicable, at the operative time, to the member spouse’s gender and age in completed years (represented by y).m is the number of completed months of the member spouse’s age, when the associate deferred annuity first becomes payable, that are not included in the member spouse’s age in completed years. |
| Fy+1 is the valuation factor mentioned in Table 1 in Schedule 3, applicable, at the operative time, to the member spouse’s gender and age in completed years if the person’s age in completed years was one year more than it was at that time. | |
| Step 3 | Multiply the annual rate of associate immediate annuity by the annuity factor worked out in step 2. |
| Step 4 | Subtract the transfer amount from the amount worked out in step 3. |
| Step 5 | Divide the amount worked out in step 4 by the annuity factor worked out in step 2.The result is the annual rate of associate immediate annuity payable after the operative time in respect of the original interest. |
| Step 6 | The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased. |
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the member spouse’s annual rate of associate annuity.
(4) However, if it is not possible to reduce the annual rate of associate immediate annuity using subsection (3), the reduction of the annual rate of associate immediate annuity is to be calculated by an actuary appointed by the Secretary for this section.
(5) If the annuity is an associate deferred annuity, the amount to which the annual rate of associate deferred annuity payable in respect of an original interest is to be reduced is calculated as follows:
| Step 1 | Identify the annual rate of associate deferred annuity that would have been payable in relation to the member spouse immediately before the operative time. |
|---|---|
| Step 2 | Work out an annuity factor (F y+m) based on the member spouse’s gender and age, using the formula:where:Fy is:(a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 3, applicable, when the associate deferred annuity first becomes payable, to the member spouse’s gender and age in completed years (represented by y); and(b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 3, applicable, when the associate deferred annuity first becomes payable, to the member spouse’s gender and age in completed years (represented by y).m is the number of completed months of the member spouse’s age, when the associate deferred annuity first becomes payable, that are not included in the member spouse’s age in completed years.Fy+1 is:(a) if the associate deferred annuity is not payable on permanent incapacity — the valuation factor mentioned in Table 2A in Schedule 3, applicable, when the associate deferred annuity first becomes payable, to the member spouse’s gender and age in completed years if the person’s age in completed years was one year more than it was at that time; and(b) if the associate deferred annuity is payable on permanent incapacity — the valuation factor mentioned in Table 2B in Schedule 3, applicable, when the associate deferred annuity first becomes payable, to the member spouse’s gender and age in completed years if the person’s age in completed years was one year more than it was at the operative time. |
| Step 3 | Multiply the annual rate of associate deferred annuity by the annuity factor worked out in step 2. |
| Step 4 | Subtract the transfer amount from the amount worked out in step 3. |
| Step 5 | Divide the amount worked out in step 4 by the annuity factor worked out in step 2.The result is the annual rate of associate deferred annuity payable after the operative time in respect of the original interest. |
| Step 6 | The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased. |
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the member spouse’s annual rate of associate annuity.
(6) However, if it is not possible to reduce the annual rate of associate deferred annuity using subsection (5), the reduction of the annual rate of associate deferred annuity is to be calculated by an actuary appointed by the Secretary for this section.
Part 3 Application, saving and transitional provisions
3.01 Amendment made by the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Amendment Orders 2023
(1) This section applies to an agreement or court order made under Part VIIIB or VIIIC of the Family Law Act 1975 on or after the commencement of the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Amendment Orders 2023.
(2) Schedule 1, as amended by that instrument, applies in relation to the determination of the value of an interest in the Scheme identified in the agreement or order, whether the operative time in relation to the relevant payment split is before, on or after that commencement.
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
(section 2.01)
Part 1 Methods
1 Definitions
In this Part:
fraction of a year means the quotient of the number of days of the period of service in the year and 365.
Scheme means the retirement scheme constituted by the Act.
2 Methods and factors for interests of members in the Scheme — growth phase
For an interest that is in the growth phase in the Scheme mentioned in an item in the following table, the method or factor mentioned in the item is approved for these Orders.
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td style="width:19.25pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Item</span></p></td><td style="width:121.15pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Interest in the growth phase</span></p></td><td colspan="2" style="width:187.2pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableColHead"><span>Method or factor</span></p></td></tr></thead><tbody><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>1</span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>An interest that a person who is a member of either House has in the Scheme.</span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt; text-align:center"><span>(ABP × Parl. A + AARA – PC) × PF</span><span style="font-size:7.33pt; vertical-align:sub">y+m,s</span><span> + LS ×</span><span> </span><span>LSF</span><span style="font-size:7.33pt; vertical-align:sub">y+m,s</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>where:</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">ABP</span><span> is the person’s accrued basic pension multiple at the operative time calculated, by reference to the person’s period of service:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>by adding:</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>for service that occurred within the first 8 years</span><span> </span><span>— 0.0625 × each full year of service plus 0.0625/365 × the number of left</span><span>‑</span><span>over days in that period; and</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>for service that occurred within the next 10 years</span><span> </span><span>— 0.025 × each full year of service plus 0.025/365 × the number of left</span><span>‑</span><span>over days in that period; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:9pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>if section 22CD of the Act applies to the interest</span><span style="font-family:Arial, sans-serif; font-size:10pt"> </span><span>— by subtracting from the amount calculated under paragraph (a) any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(6) of the Act) that would apply after a retiring allowance becomes payable.</span></p><p class="Note" style="margin-top:9pt; margin-left:0pt"><span style="font-size:10pt; font-style:italic">Note</span><span style="font-size:10pt"> </span><span style="font-size:10pt"></span><span style="font-size:10pt"></span><span style="font-size:10pt">ABP will not exceed 0.75.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">Parl. A </span><span>is the parliamentary allowance of the person, expressed as an annual amount, at the operative time.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">AARA </span><span>is the person’s additional retiring allowance, if any, being the lesser of:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the sum of the additional retiring allowances accrued at the operative time by the person for each office the person held as a Minister of State or as an office holder during the person’s period of service, calculated, for each office, as the product of:</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>the person’s accrued additional retiring allowance multiple</span><span> </span><span>— being 0.0625 × the number of years, and any fraction of a year, the person served as a Minister of State or an office holder, as the case may be, during that period, and if section 22CD of the Act applies to the interest, that multiple less the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable; and</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time; and</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>whichever of the following applies:</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act does not apply to the interest</span><span> </span><span>— 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act applies to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Query"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:19.81pt; text-indent:0pt; display:inline-block"></span><span>(iii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act does not apply to the interest — 75% of the highest annual salary or annual allowance by way of salary payable in respect of those offices at the operative time;</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:20.42pt; text-indent:0pt; display:inline-block"></span><span>(iv)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act applies to the interest — 75% of the highest annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of those offices, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-weight:bold; font-style:italic">PC</span><span> is the annual amount, if any, by which the person’s retiring allowance is reduced under subsection 20</span><span> </span><span>(3A) of the Act.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">PF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+m,s</span><span style="font-weight:bold; font-style:italic"> </span><span>is the pension valuation factor calculated in accordance with the following formula:</span></p><p class="Formula" style="margin-top:3pt"><img src="image.004.png" width="164" height="41" alt="Start formula start fraction PF subscript y comma s times open bracket 12 minus m close bracket plus PF subscript y plus 1 comma s times m over 12 end fraction end formula"></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Query"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span>where:</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">PF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y,s</span><span style="font-weight:bold; font-style:italic"> </span><span>is the pension valuation factor mentioned, for:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s age in completed years (</span><span style="font-weight:bold; font-style:italic">y</span><span>) at the operative time; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s period of service in completed years (</span><span style="font-weight:bold; font-style:italic">s</span><span>) as at the date of the last House of Representatives election before the operative time;</span></p><p class="TableText" style="margin-top:6pt"><span>in whichever of Tables 1 to 36 is applicable, according to Table A, given the following:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(c)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s gender;</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(d)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>whether he or she is a member of the House of Representatives or the Senate or was such a member at the operative time;</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(e)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>whether or not, if he or she became entitled to a retiring allowance within the meaning of the Act, he or she would be a deferring member;</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:9.41pt; text-indent:0pt; display:inline-block"></span><span>(f)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the number of completed years, at the operative time, since the last election of the House of Representatives;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a" style="margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(g)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>in the case of a member of the Senate, whether he or she last became a member of the Senate (whether by election or otherwise) before the last House of Representatives election.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">m </span><span>is the number of complete months of the person’s age at the operative time that are not included in the person’s completed years of age.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">PF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+1,s</span><span> is the pension valuation factor mentioned in whichever of Tables 1 to 36 is applicable that would apply</span><span style="font-weight:bold; font-style:italic"> </span><span>if the person’s age in completed years at the operative time were 1</span><span> </span><span>year more than it is.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">LS</span><span> is the sum of the person’s member contributions paid to the operative time, plus:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>for a person whose period of service is at least 8 years</span><span> </span><span>— 2</span><span style="font-size:14pt">⅓</span><span> times the person’s member contributions paid in the period of service of 8 years immediately before the operative time; or</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>for a person whose period of service is less than 8 years</span><span> </span><span>— 2</span><span style="font-size:14pt">⅓</span><span> times the person’s member contributions paid in the period of service immediately before the operative time.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">LSF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+m,s</span><span> is the factor calculated in accordance with the following formula:</span></p><p class="Formula" style="margin-top:3pt"><img src="image.005.png" width="181" height="41" alt="Start formula start fraction LSF subscript y comma s times open bracket 12 minus m close bracket plus LSF subscript y plus 1 comma s times m over 12 end fraction end formula"></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span>where:</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">LSF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y,s</span><span style="font-weight:bold; font-style:italic"> </span><span>is the lump sum valuation factor mentioned for:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s age in completed years (</span><span style="font-weight:bold; font-style:italic">y</span><span>) at the operative time; and</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s period of service in completed years (</span><span style="font-weight:bold; font-style:italic">s</span><span>) as at the date of the last House of Representatives election before the operative time;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>in whichever of Tables 37 to 54 is applicable, according to Table B, given the following:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(c)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the person’s gender;</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(d)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>whether he or she is a member of the House of Representatives or the Senate;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(e)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the number of completed years, at the operative time, since the last election of the House of Representatives;</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:9.41pt; text-indent:0pt; display:inline-block"></span><span>(f)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>in the case of a member of the Senate, whether he or she last became a member of the Senate (whether by election or otherwise) before the last House of Representatives election.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">m </span><span>has the meaning given above.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">LSF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+1,s</span><span style="font-weight:bold; font-style:italic"> </span><span>is the lump sum valuation factor mentioned in whichever of Tables 37 to 54 is applicable that would apply if the person’s age in completed years at the operative time were 1 year more than it is.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>2</span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>An interest that a person who has ceased to be a member of either House has in the Scheme as a deferring member under Part VA of the Act, before the day on which the person attains the age of 55</span><span> </span><span>years.</span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt; text-align:center"><span>(ABP × Parl. A + AARA – PC) × DPF</span><span style="font-size:7.33pt; vertical-align:sub">y+m</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>where:</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">ABP</span><span> is the person’s accrued basic pension multiple at the operative time calculated, by reference to the person’s period of service:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>by adding:</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>for service that occurred within the first 8 years</span><span> </span><span>— 0.0625 × each full year of service plus 0.0625/365 × the number of left</span><span>‑</span><span>over days in that period; and</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>for service that occurred within the next 10 years</span><span> </span><span>— 0.025 × each full year of service plus 0.025/365 × the number of left</span><span>‑</span><span>over days in that period; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>if section 22CD of the Act applies to the interest</span><span style="font-family:Arial, sans-serif; font-size:10pt"> </span><span>— by subtracting from the amount calculated under paragraph (a) any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(6) of the Act) that would apply after a retiring allowance becomes payable.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-size:9pt; font-style:italic">Note</span><span style="font-size:9pt"> </span><span style="font-size:9pt"></span><span style="font-size:9pt"></span><span style="font-size:9pt">ABP will not exceed 0.75.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">Parl. A </span><span>is the parliamentary allowance, expressed as an annual amount, payable to a member of either House of the Parliament at the operative time.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-after:avoid"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-after:avoid"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="page-break-after:avoid"><span style="font-weight:bold; font-style:italic">AARA </span><span>is the person’s additional retiring allowance, if any, being the lesser of:</span></p><p class="TableP1a" style="margin-top:3pt; page-break-after:avoid"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the sum of the additional retiring allowances accrued at the operative time by the person for each office the person held as a Minister of State or as an office holder during the person’s period of service, calculated, for each office, as the product of:</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>the person’s accrued additional retiring allowance multiple — being 0.0625 × the number of years, and any fraction of a year, the person served as a Minister of State or an office holder, as the case may be, during that period, and if section 22CD of the Act applies to the interest, that multiple less the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable; and</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time; and</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP1a"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>whichever of the following applies:</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:25.92pt; text-indent:0pt; display:inline-block"></span><span>(i)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act does not apply to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:22.86pt; text-indent:0pt; display:inline-block"></span><span>(ii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 1 office only and section 22CD of the Act applies to the interest — 75% of the annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of that office, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time;</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableP2i"><span style="width:19.81pt; text-indent:0pt; display:inline-block"></span><span>(iii)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act does not apply to the interest — 75% of the highest annual salary or annual allowance by way of salary payable in respect of those offices at the operative time;</span></p><p class="TableP2i" style="margin-top:3pt"><span style="width:20.42pt; text-indent:0pt; display:inline-block"></span><span>(iv)</span><span style="width:7.1pt; text-indent:0pt; display:inline-block"> </span><span>if the person has accrued additional retiring allowance for 2 or more offices and section 22CD of the Act applies to the interest — 75% of the highest annual salary payable to a Minister of State, or the annual allowance by way of salary payable to an office holder in respect of those offices, as the case may be, at the operative time less the product of the sum of any interim factors for previous splits (calculated in accordance with subsection 22CH</span><span> </span><span>(7) of the Act) that would apply after a retiring allowance becomes payable, and that annual salary or annual allowance, as the case may be, at the operative time.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">PC</span><span> is the annual amount, if any, by which the person’s retiring allowance is reduced under subsection 20</span><span> </span><span>(3A) of the Act.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">DPF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+m</span><span style="font-weight:bold; font-style:italic"> </span><span>is the deferred pension valuation factor calculated in accordance with the following formula:</span></p><p class="Formula" style="margin-top:3pt"><img src="image.006.png" width="173" height="41" alt="Start formula start fraction DPF subscript y times open bracket 12 minus m close bracket plus DPF subscript y plus 1 times m over 12 end fraction end formula"></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span>where:</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span style="font-weight:bold; font-style:italic">DPF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y</span><span style="font-weight:bold; font-style:italic"> </span><span>is the deferred pension valuation factor mentioned in Table 55 that applies at the person’s age in completed years (</span><span style="font-weight:bold; font-style:italic">y</span><span>) at the operative time for the person’s gender.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-weight:bold; font-style:italic">m </span><span>is the number of complete months of the person’s age at the operative time that are not included in the person’s completed years of age.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold; font-style:italic">DPF</span><span style="font-size:7.33pt; font-weight:bold; font-style:italic; vertical-align:sub">y+1 </span><span>is the deferred pension valuation factor mentioned in Table 55 that would apply if the person’s age in completed years at the operative time were 1 year more than it is.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>3</span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:12pt"><span>An interest that a person has in the Scheme if the person is entitled to an associate deferred annuity under subsection 22CD</span><span> </span><span>(3) of the Act.</span></p><p class="Query" style="margin-top:12pt"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Formula" style="margin-bottom:3pt"><img src="image.007.png" width="39" height="19" alt="Start formula UTA end formula"></p><p class="TableText"><span>where </span><span style="font-weight:bold; font-style:italic">UTA</span><span> is:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the lump sum value of the transfer amount, as increased in accordance with the method set out below; or</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>if section 22CD of the Act applies to the interest</span><span> </span><span>— the amount calculated under paragraph (a) less the sum of any reductions that apply under section 22CI of the Act, as if the annuity had become payable at the operative time.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-after:avoid"><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p style="page-break-after:avoid"><span></span></p></td><td colspan="2" style="width:187.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="page-break-after:avoid"><span style="font-weight:bold">Method for increasing transfer amount</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold">Step 1</span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span>Increase the transfer amount for any period between the operative time (being the operative time in relation to the splitting agreement or splitting order as a result of which the person has the entitlement under subsection 22CD</span><span> </span><span>(3) of the Act) and the operative time, using the Treasury bond rate for the last working day of the financial year ending immediately before the period for which the increase is being calculated for bonds with a 10</span><span> </span><span>year term.</span></p><p class="TableText" style="margin-top:6pt"><span style="font-size:10pt; font-style:italic">Note</span><span style="font-size:10pt"> </span><span style="font-size:10pt"></span><span style="font-size:10pt"></span><span style="font-size:10pt">The period between the operative time and the operative time may include a number of full financial years, or may occur entirely within a single financial year.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-style:italic">Treasury bond rate for bonds with a 10 year term</span></p><p class="TableText" style="margin-top:6pt"><span>The Treasury bond rate for the last working day of a financial year for bonds with a 10 year term is:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>if any Treasury bonds with that term were issued on that day</span><span> </span><span>— the annual yield on those bonds; or</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>in any other case</span><span> </span><span>— the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span style="font-size:10pt; font-weight:bold"></span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-style:italic">Calculation of increase in transfer amount</span></p><p class="TableText" style="margin-top:6pt"><span>The increase in the transfer amount is calculated:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>at the end of each financial year that occurs between the operative time and the operative time; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>immediately before the operative time;</span></p><p class="TableText" style="margin-top:6pt"><span>using the applicable Treasury bond rate for the relevant period worked out in accordance with steps 2, 3 and</span><span> </span><span>4, and compounded period by period.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span style="font-weight:bold">Step 2</span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-style:italic">First period</span></p><p class="TableText" style="margin-top:6pt"><span>Identify the shorter of:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the period between the operative time and the end of the financial year in which the operative time occurs; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>the period between the operative time and the operative time.</span></p><p class="TableText" style="margin-top:6pt"><span>This is the </span><span style="font-weight:bold; font-style:italic">first period</span><span>.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span></span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span>Multiply the number of days in the first period by the Treasury bond rate for bonds with a 10</span><span> </span><span>year term that is applicable to the financial year in which the first period occurs, and divide the result by 365.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold"></span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span>Round the result to 3 decimal places.</span></p><p class="TableText" style="margin-top:6pt"><span>The result is the applicable Treasury bond rate for the first period.</span></p></td></tr><tr><td style="width:19.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold">Step 3</span></p></td><td style="width:139.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-style:italic">Full financial years (if any)</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>Use this step if a full financial year occurs immediately after the end of the first period and before the operative time. This is the </span><span style="font-weight:bold; font-style:italic">second period</span><span>.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>Identify the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>Round the result to 3 decimal places.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>The result is the applicable Treasury bond rate for the second period.</span></p><p class="TableText" style="margin-top:6pt"><span>Repeat this arrangement for each full financial year after the second period.</span></p></td></tr><tr><td style="width:19.25pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:121.15pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p><span></span></p></td><td style="width:37.2pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText"><span style="font-weight:bold">Step 4</span></p></td><td style="width:139.2pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableText" style="margin-bottom:6pt"><span style="font-style:italic">Final period (if any)</span></p><p class="TableText" style="margin-top:6pt"><span>Use this step if:</span></p><p class="TableP1a" style="margin-top:3pt"><span style="width:8.19pt; text-indent:0pt; display:inline-block"></span><span>(a)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>there is any period between the end of a financial year and the operative time; and</span></p><p class="TableP1a" style="margin-top:3pt; margin-bottom:6pt"><span style="width:7.57pt; text-indent:0pt; display:inline-block"></span><span>(b)</span><span style="width:6.25pt; text-indent:0pt; display:inline-block"> </span><span>neither step 2 nor step 3 covers that period.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>This is the </span><span style="font-weight:bold; font-style:italic">final period</span><span>.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>Multiply the number of days in the final period by the Treasury bond rate for bonds with a 10 year term that is applicable to the financial year in which the final period occurs, and divide the result by 365.</span></p><p class="TableText" style="margin-top:6pt; margin-bottom:6pt"><span>Round the result to 3 decimal places.</span></p><p class="TableText" style="margin-top:6pt"><span>The result is the applicable Treasury bond rate for the final period.</span></p></td></tr></tbody></table> ```Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Orders 2004
Statutory Rules No. 97, 2004
made under section 22CK of the
Parliamentary Contributory Superannuation Act 1948
Compilation No. 3
Compilation date: 20 June 2025
Includes amendments: F2025L00705
About this compilation
This compilation
This is a compilation of the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Orders 2004 that shows the text of the law as amended and in force on 20 June 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1 Preliminary
1.01 Name of Orders
1.03 Definitions
Part 2 Orders relating to certain amounts and rates
2.01 Scheme value — member spouse with no surcharge debt
2.01A Scheme value — member spouse with surcharge debt
2.02 Annual rate of associate immediate annuity
2.03 Annual rate of associate deferred annuity
2.04 Amount payable if non‑member spouse dies before associate deferred annuity becomes payable
2.05 Commutation of small associate annuity — maximum amount
2.06 Commutation of small associate annuity — lump sum payable on election
2.07 Reduction of associate annuity where original interest is entitlement to associate deferred annuity
2.08 Reduction of standard allowance or annuity
Part 3 Application, saving and transitional provisions
3.01 Amendment made by the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Amendment Orders 2023
Schedule 1 Methods and factors used to determine scheme value in relation to member spouse
Part 1 Methods
Part 2 Scheme factors
Schedule 2 Annuity Factors for non‑member spouses
Schedule 3 Annuity Factors for member spouses
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Part 1 Preliminary
1.01 Name of Orders
These Orders are the Superannuation (Family Law — Parliamentary Contributory Superannuation Act 1948) Orders 2004.
1.03 Definitions
(1) In these Orders:
Act means the Parliamentary Contributory Superannuation Act 1948.
actuary means a person who is a Fellow or Accredited Member of the Institute of Actuaries of Australia.
family law commencement day means 18 May 2004.
Note Part 1 of these Orders commenced on 18 May 2004.
FL Act means the Family Law Act 1975.
Secretary means the Secretary of the Finance Department.
Note Several other words and expressions used in these Orders have the meaning given by subsection 4 (1) of the Act, including parliamentary allowance.
Note: In this context, member is defined in subsection 4 (1) of the Act to mean a member of either House. A member spouse is also defined in the Act, but uses the word member in a different sense.
(2) An expression that is used in these Orders, and defined in section 22CA of the Act, has the meaning given by that section.
Note Section 22CA of the Act defines expressions including applicable additional percentage, applicable basic percentage, non‑member spouse, operative time and transfer amount. Some expressions are defined in section 22CA to have the same meaning as in the FL Act.
Part 2 Orders relating to certain amounts and rates
2.01 Scheme value — member spouse with no surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time did not show a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 22CA of the Act:
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by the Secretary for this section.
2.01A Scheme value — member spouse with surcharge debt
(1) This section applies if the most recent member information statement provided to a member spouse before the operative time (the statement) showed a debit in the member spouse’s surcharge debt account.
(2) For the definition of scheme value in section 22CA of the Act, and subject to subsections (3) to (6):
(a) if the operative time was before the family law commencement day, the scheme value in relation to the member spouse is the family law value; and
(b) if the operative time is on or after the family law commencement day:
(i) the scheme value in relation to the member spouse is determined using the methods and factors set out in Schedule 1 as in force at the operative time; or
(ii) if it is not possible to determine the scheme value using those methods and factors, the scheme value in relation to the member spouse is to be determined by an actuary appointed by the Secretary for this section.
(3) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer amount in section 22CA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2), reduced by the amount of the member spouse’s surcharge debt shown in the statement.
(4) If:
(a) it is necessary to work out the scheme value for the purpose of the definition of transfer factor in section 22CA of the Act; and
(b) the operative time is on or after the day on which this subsection commences;
the scheme value is the value identified under subsection (2).
(5) If the operative time was before the family law commencement day, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer factor; and
(b) adding to that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) using the result of paragraph (b) to recalculate the transfer factor.
(6) If the operative time was on or after the family law commencement day, and before the day on which this subsection commences, the transfer factor in relation to the member spouse is to be recalculated by:
(a) identifying the scheme value that had previously been used to calculate the transfer amount as part of calculating the transfer factor; and
(b) subtracting from that scheme value the amount of the member spouse’s surcharge debt shown in the statement; and
(c) recalculating the transfer amount using the reduced scheme value calculated under paragraph (b); and
(d) using the result of paragraph (c), and the unreduced scheme value identified under subsection (2), to recalculate the transfer factor.
2.02 Annual rate of associate immediate annuity
(1) For subsection 22CD (2) of the Act, this section applies if standard allowance or annuity is payable in respect of an original interest.
(2) The annual rate of associate immediate annuity payable to a non‑member spouse to whom subsection 22CD (2) of the Act applies is calculated as follows:
| Step 1 | Identify the transfer amount in relation to the non‑member spouse.Note Subsection 22CD (2) of the Act requires the rate of associate immediate annuity to be calculated by reference to the transfer amount. |
|---|---|
| Step 2 | Work out an annuity factor (F y+m) based on the non‑member spouse’s gender and age, using the formula:where:Fy is the valuation factor mentioned in Table 1 in Schedule 2 applicable, at the operative time, to the non‑member spouse’s gender and age in completed years (represented by y).m is the number of completed months of the non‑member spouse’s age, at the operative time, that are not included in the non‑member spouse’s age in completed years.Fy+1 is the valuation factor mentioned in Table 1 in Schedule 2 that would apply to the person if the person’s age in completed years was one year more than it is at the operative time.Note The associate immediate annuity does not include a reversionary component. |
| Step 3 | Divide the transfer amount identified in step 1 by the annuity factor worked out in step 2.The result is the annual rate of the associate immediate annuity. |
| Step 4 | The annual rate is to be increased in the same way, and at the same time, as the rate of parliamentary allowance is increased. |
Note If there is a decrease in the rate of parliamentary allowance, section 22T of the Act deals with the relationship between a member’s retiring allowance and the member’s parliamentary allowance. This is also relevant to the non‑member spouse’s associate immediate annuity.
(3) However, if it is not possible to calculate the annual rate of associate immediate annuity using subsection (2), the annual rate of associate immediate annuity payable to a non‑member spouse to whom subsection 22CD (2) of the Act applies is to be calculated by an actuary appointed by the Secretary for this section.
2.03 Annual rate of associate deferred annuity
(1) For subsection 22CE (1) of the Act, the annual rate at which an associate deferred annuity is to be paid is calculated as follows:
| Step 1 | Identify the transfer amount at the operative time. |
|---|---|
| Step 2A | Increase the transfer amount for any period between the operative time and the time at which the associate deferred annuity first becomes payable |
This is an opening excerpt, not the complete document.