Pension Portability Rate Calculator
1221 Pension Portability Rate Calculator
This section sets out the Pension Portability Rate Calculator for the purposes of this Part.
Pension Portability Rate Calculator
Module A—Overall rate calculation process
Overall rate calculation process
1221‑A1 This is how to calculate a person’s portability rate:
Method statement
Step 1. Work out the period of the person’s Australian working life residence using Module B: the result is called the residence period.
Step 2. Use the person’s residence period to work out the person’s residence factor using Module C below.
Step 3. Work out the rate that would be the person’s pension or allowance rate if this Rate Calculator did not apply to the person: the result is called the person’s notional domestic rate.
Step 4. Multiply the person’s notional domestic rate by the person’s residence factor: the result is the person’s portability rate.
Limit in portability rate
1221‑A2 If a person’s portability rate as calculated under point 1221‑A1 would exceed the rate (the notional rate) that would be the person’s notional domestic rate under that point if the person had a residence factor of 1, the person’s portability rate is the rate that equals the notional rate.
Former recipients of widow B pension
1221‑A3 If:
immediately before 20 March 2020, a woman was receiving a widow B pension under Part 2.8; and
the woman had become qualified for the widow B pension because of the woman’s partner’s death; and
on a day on or after 20 March 2020, the woman’s rate of age pension is worked out as mentioned in section 1220A; and
on that day, that partner’s period of Australian working life residence (immediately before that partner’s death) exceeds the woman’s period of Australian working life residence on that day; and
on that day, the woman is not a member of a couple;
then, for the purposes of working out that rate of age pension, the woman’s period of Australian working life residence is taken to be equal to that partner’s period of Australian working life residence (immediately before that partner’s death).
Former recipients of wife pension
1221‑A4 If immediately before 20 March 2020:
either:
a woman was receiving a wife pension under Part 2.4; or
a woman was receiving a wife pension under a scheduled international social security agreement; and
the woman was a member of a couple; and
the rate of the woman’s wife pension was required to be worked out having regard to the woman’s period of Australian working life residence; and
the woman’s period of Australian working life residence was taken to be equal to the period of Australian working life residence of the woman’s partner;
then, for a day on or after 20 March 2020, the woman’s period of Australian working life residence is taken to be equal to the period of Australian working life residence of the woman’s partner if the following apply on that day:
the woman is a member of that same couple;
the woman’s rate of age pension is worked out as mentioned in section 1220A.
Module B—Australian working life residence
Working life
1221‑B1 For the purposes of this Module, a person’s working life is the period beginning when the person turns 16 and ending when the person reaches pension age.
For pension age see subsections 23(5A), (5B), (5C) and (5D).
Australian working life residence (general)
1221‑B2 Subject to points 1221‑B3 and 1221‑B4, a person’s period of Australian working life residence as at a particular time is the number of months in the period, or the aggregate of the periods, during the person’s working life during which the person has, up to that time, been an Australian resident.
For the method of calculating the number of months in the period see points 1221‑B3 and 1221‑B4 below.
Calculation of number of months
1221‑B3 If a person’s period of Australian working life residence would, apart from this point, be a number of whole months, the period is to be increased by one month.
1221‑B4 If a person’s period of Australian working life residence would, apart from this point, be a number of whole months and a day or days, the period is to be increased so that it is equal to the number of months plus one month.
Module C—Residence factor
Residence factor (period of Australian working life residence 35 years or more)
1221‑C1 If a person’s period of Australian working life residence is 420 months (35 years) or more, the person’s residence factor is 1.
If a person’s residence factor is 1, the person’s pension will be payable outside Australia at the full domestic rate.
Residence factor (period of Australian working life residence under 35 years)
1221‑C2 If a person’s period of Australian working life residence is less than 420 months (35 years), the person’s residence factor is:
Start formula start fraction Person's period of Australian working life residence over 420 end fraction end formula
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