Final salary
27 Final salary
In this section—
base date, in relation to a contributor, means—
where, during the period of 3 years that last preceded the contributor’s exit date, the contributor was continuously a contributor in the employment of an employer—the date that preceded the exit date by 3 years,
where, during the period of 3 years that last preceded the contributor’s exit date, the contributor ceased to be a contributor, and subsequently again became a contributor—the date of the last or only resumption as a contributor, or
in any other case—the contributor’s entry date.
index number, in relation to a quarter, means the number for that quarter appearing in the Consumer Price Index (All Groups Index) for Sydney published by the Australian Statistician under the Census and Statistics Act 1905 of the Parliament of the Commonwealth.
last quarter, in relation to a contributor, means the quarter relevant to the index number last published before, or published on, the contributor’s exit date.
quarter means a period of 3 months commencing on 1 January, 1 April, 1 July or 1 October.
relevant index number, in relation to a contributor, means the index number for the quarter that immediately preceded the contributor’s last quarter by the number of quarters calculated in accordance with the formula—
where—
Q represents the number of quarters to be ascertained, any fraction being disregarded, and
M represents the number of whole months included in the period that commenced on the contributor’s base date and ended on the contributor’s exit date.
For the purposes of this Part, the amount of a contributor’s final salary is the lesser of—
the amount of the attributed salary of the contributor applicable as at the contributor’s exit date, and
the amount calculated in accordance with the formula—
where—
N represents the amount to be ascertained,
B represents the amount of the attributed salary of the contributor applicable as at the contributor’s base date,
C represents the index number for the last quarter for the contributor, and
D represents the relevant index number for the contributor.
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