Pension on retirement before age 60—component pension
28AA Pension on retirement before age 60—component pension
On the retirement of a contributor under section 21 (1B) on or after the commencement of Schedule 2 (6) to the Superannuation (Amendment) Act 1985, except as provided by subsection (2), the pension to which the contributor is entitled is a pension under this section.
A contributor is entitled to the pension under section 28A and not the pension under this section if the sum of—
the amount which would be payable to the contributor on the commutation of the whole of the pension payable to the contributor under section 28A, and
the amount of any lump sum which would be payable to the contributor under section 28A (5),
is greater than the amount which would be payable to the contributor on the commutation of the whole of the pension payable to the contributor under this section.
The pension to which a contributor is entitled under this section is a pension of an amount per fortnight equivalent to the sum of the employee-contributed pension component, and the employer-financed pension component, in relation to the contributor.
For the purposes of subsection (3), the employee-contributed pension component, in relation to a contributor, shall be calculated in accordance with the following formula—
where—
P1 is the employee-contributed pension component.
EPU is the sum of the following—
,
,
UC.
UHn is the number of units of pension for which contributions were payable by the contributor on the contributor’s exit day in accordance with the tables of contributions fixed by or under this Act, but excluding—
any such units of pension which are excess units of pension referred to in section 10W (1) and in respect of which no person has any rights in the Fund, and
any such units of pension, being reserve units, for which contributions were being made under section 15A.
Cn is the amount of contributions due for the last contribution period for which contributions were payable by the contributor before the contributor’s exit day, in respect of that number of units of pension.
Rn is the amount which, if the contributor were required under Division 5 of Part 3 to commence to contribute for an additional unit of pension on the contributor’s exit day, would be the amount payable in accordance with the tables of contributions fixed under section 10AD for that unit for a contribution period.
TCB is the total amount paid in respect of instalments payable by the contributor on or before the contributor’s exit day for units of pension for which the contributor contributed in accordance with Division 6 of Part 3 (but deducting therefrom any part of that amount allocated under this Act to the purchase of fully paid up units).
RB is the amount specified in section 10AG (1) as the cost of a unit of pension in relation to the contributor.
UC is the number of units (if any) purchased by the contributor and credited to the contributor as fully paid up units under section 20C or otherwise.
TM is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day from which the pension under this section commences to be payable precedes the date on which the contributor attains the age of 60 years.
For the purposes of subsection (3), the employer-financed pension component, in relation to a contributor, shall be calculated in accordance with the following formula—
where—
P2 is the employer-financed pension component.
UE is the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary payable to the contributor on the contributor’s exit day plus, in a case to which section 10W applies, the number of any excess units of pension referred to in section 10W (1) and in respect of which STC considers, in accordance with section 10W (5), that the retention of entitlement to benefits under this Act is warranted.
S is the number of years (including any fractional part of a year calculated on a daily basis) of continuous contributory service by the contributor with any one or more employers.
TM is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day from which the pension under this section commences to be payable precedes the date on which the contributor attains the age of 60 years.
If STC has made a determination under section 61RA in respect of a pension payable under subsection (3), the amount of that pension is reduced by the amount specified in STC’s determination.
For the purposes of subsection (5), the period of continuous contributory service by a person on the person’s exit day is the period that commenced when the person last became a contributor and ended on that day (but excluding any part of that period during which the person is treated by section 48 as being on leave of absence without pay).
Except as provided by subsection (7A), a pension payable under this section shall commence and be payable as from the day following the contributor’s exit day.
A pension payable under this section to a contributor who is retrenched shall be payable as from and including the day after the date on which the contributor actually leaves the service of the employer, whether or not at the contributor’s exit day any period of untaken leave was due to the contributor.
Contributions payable by and in respect of a contributor whose pension is payable under this section shall cease to be paid—
where the pension becomes payable before the commencement of Schedule 9 to the Superannuation (Amendment) Act 1983—on the first day of the month or four-weekly contribution period, as the case may be, in which the pension commences to be payable in accordance with subsection (7), or
where the pension becomes payable on or after the commencement of that Schedule—on the first day of the contribution period preceding that in which the pension commences to be payable in accordance with subsection (7) or (7A).
(Repealed)
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