Election to receive early retirement benefit at reduced rate
61AB Election to receive early retirement benefit at reduced rate
Subject to subsection (2), a person who becomes, or is about to become, entitled to standard early retirement pension under this Division or Subdivision C of Division 3 of Part VIC may, not later than 3 months after but not earlier than 3 months before he or she becomes so entitled, by notice in writing to CSC, elect to be paid early retirement benefit at a reduced rate under this section.
A person who has made an election under section 76A or 110T may not make an election under subsection (1).
If a person makes an election under section 110T after making an election under subsection (1), the person is taken not to have made the election under subsection (1).
If a person makes an election under this section:
the annual rate at which standard early retirement pension is payable to the person is 93% of the annual rate at which that pension would be payable to the person if he or she did not make the election; and
if the person is entitled to additional early retirement pension, the annual rate of that pension is:
an amount per annum equal to the amount (base amount) worked out by multiplying the person’s accumulated contributions by the factor applicable to him or her under subsection (5); or
if the rate worked out under subparagraph (i) is greater than 20% of the person’s notional final annual rate of salary—20% of his or her notional final annual rate of salary; and
if the base amount is greater than an amount (maximum amount) equal to 20% of the person’s final annual rate of salary, the person is to be paid a lump sum benefit equal to the amount by which his or her accumulated contributions exceed an amount worked out by dividing the maximum amount by the factor applicable to him or her under subsection (5).
The factor applicable to a person for the purposes of paragraphs (4)(b) and (c) is the factor that, having regard to his or her age on his or her last day of service and such other matters (if any) as are prescribed, is applicable to him or her under regulations made for the purposes of this subsection.
In this section:
notional final annual rate of salary, in relation to a person, means the annual rate of the person’s final annual rate of salary reduced by the percentage of that rate that, having regard to his or her age on his or her last day of service and such other matters (if any) as are prescribed, is applicable to him or her under regulations made for the purposes of this definition.
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