Reduction for the Act, section 41
8 Reduction for the Act, section 41
For the Act, section 45A(2)(b), the following formula is prescribed as the method of calculating a reduction of a benefit payable under the Act, section 41—
where—
R is the amount of the reduction.
T is the period in years, with a fractional part of a year being calculated based on complete contribution periods, that commenced on the most recent of the taxable date or the contributor’s entry date and ended on the contributor’s exit date.
C is the amount of the contributor-financed benefit payable under the Act, section 41(2)(a).
A is the accrued benefit points for the contributor at the contributor’s exit date.
Y is the sum of the contributor’s contributed points figures calculated in relation to the contributor for the applicable contribution periods.
This section does not apply to a benefit if the contributor’s period of continuous contributory service is less than 10 years.
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