Calculation of benefits after payment of release authority lump sum
17AN Calculation of benefits after payment of release authority lump sum
Judge’s retirement pension
If:
a release authority lump sum is paid in relation to a release authority issued to a Judge; and
the Judge is entitled to a retirement pension in accordance with subsection 6A(2) or 6B(2);
the Judge’s rate of retirement pension is the applicable percentage of the rate of retirement pension that would, apart from this section (but having regard to any other provisions of this Act that affect that rate), be worked out under subsection 6A(2), 6B(2) or 6C(3).
For the purposes of subsection (1), the applicable percentage is worked out using this formula:
where:
age factor means the age factor for the Judge on the day on which the retirement pension becomes payable (see subsection (4)).
basic rate means the rate of the retirement pension that would, apart from this subsection (but having regard to any other provisions of this Act that affect that rate), be worked out under subsection 6A(2), 6B(2) or 6C(3) for the Judge at the time the retirement pension becomes payable.
The applicable percentage mentioned in subsection (1) is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
The regulations may prescribe the age factor, or the method for working out the age factor, for the purposes of subsection (2).
Associate deferred pension
If a release authority lump sum is paid in relation to a release authority issued to a person and an associate deferred pension is payable to the person, the annual rate of the pension is to be reduced so that it equals the amount worked out using this formula:
where:
age factor means the age factor for the person on the day on which the pension becomes payable (see subsection (6)).
pre‑reduction rate means the annual rate of the pension that would, apart from this section (but having regard to any other provisions of this Act that affect that rate), be payable to the person.
The regulations may prescribe the age factor, or the method for working out the age factor, for the purposes of subsection (5).
Multiple release authority lump sums
If more than one release authority lump sum is paid in relation to release authorities issued to a Judge or another person, a reference in the formula in subsection (2) or (5) to the release authority lump sum is taken to be a reference to the total amount of those release authority lump sums.
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