Increases in deferred pensions
7 Increases in deferred pensions
An eligible pensioner who is in receipt of a deferred pension is entitled to an increase in the rate of his pension of an amount per annum ascertained in accordance with the formula , where:
a is the amount per annum of the deferred pension as at the date on which that pension became payable;
b is the category number applicable under section 4A of the Defence Forces Retirement Benefits Act 1948‑1971 to a rate of annual pay the same as the notional rate of annual pay of the pensioner;
c is the category number applicable under section 4A of the Defence Forces Retirement Benefits Act 1948‑1971 to the maximum annual rate of pay determined by the Minister for Finance in relation to the pensioner under subsection (6) of section 3 of this Act; and d is the category number applicable under section 4A of the Defence Forces Retirement Benefits Act 1948‑1971 to a rate of annual pay the same as the maximum rate of annual pay that was applicable to the pensioner at the time immediately before he ceased to be a member.
8 Application of increases to commuted pensions etc.
Where an eligible pensioner who has commuted a portion of his pension under section 74 of the Defence Forces Retirement Benefits Act 1948 or has made an election under section 61A or section 61B of the Defence Forces Retirement Benefits Act 1963‑1968 is entitled to an increase in the rate of his pension under the preceding provisions of this Act, he is, subject to this Act, in lieu of the increase to which, but for this section, he would have been entitled in accordance with those provisions, entitled to an increase that bears to the increase to which he would have been so entitled the same proportion as the rate at which pension was payable to him immediately before the commencing date bears to the rate at which pension would have been payable to him immediately before that date if he had not commuted a portion of his pension or had not made that election, as the case may be.
The operation of section 69 of the Defence Forces Retirement Benefits Act 1948 shall be disregarded for the purposes of the last preceding subsection.
This Act’s bill:Second reading speech
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