Commuting superannuation surcharge debt
6C Commuting superannuation surcharge debt
This section applies to a Judge if:
the Judge retires; and
on retirement, the Judge becomes entitled to a pension in accordance with subsection 6B(2).
The Judge may, within a period of 2 months after retirement, give the Secretary of the Department a written notice electing to have his or her pension calculated under this section, rather than subsection 6B(2).
However, a Judge may not make an election under subsection (2) if the Judge has given the Secretary of the Department a written notice under paragraph 17AL(2)(c).
Subject to sections 16, 17AD and 17AH, if a Judge makes an election under this section, the Judge’s annual rate of pension is worked out using the following method statement:
Method statement
Step 1. Work out the reduction % using the formula:
where:
age factor means the age factor for the Judge on the day on which the pension becomes payable (see subsection (4)).
amount of surcharge debt means the amount by which the Judge’s surcharge debt account is in debit on the day on which the pension becomes payable.
basic pension on retirement means the annual rate of the pension that would be payable to the Judge on retirement if his or her surcharge debt account were not in debit when the pension becomes payable.
Step 2. Work out the Judge’s annual rate of pension using the following formula:
where:
basic pension means the annual rate of pension that would be payable to the Judge if his or her surcharge debt account were not in debit when the pension became payable.
The regulations may prescribe the age factor, or the method for working out the age factor, for the purposes of step 1 of the method statement in subsection (3).
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