Calculation of preserved pension components
52A Calculation of preserved pension components
Where a person who is retrenched or resigns or is dismissed or discharged from the service of an employer elects to take the benefit of this Division, there shall be calculated, as at the person’s exit day, the employee-contributed pension component, and the employer-financed pension component, in relation to the person.
For the purposes of subsection (1), the employee-contributed pension component in relation to a person 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 person on the person’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 person before the person’s exit day, in respect of that number of units of pension.
Rn is the relevant amount under subsection (4) in relation to the person for an additional unit of pension on the person’s exit day.
TCB is the total amount paid in respect of instalments payable by the person on or before the person’s exit day for units of pension for which the person 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 person.
UC is the number of units (if any) purchased by the person and credited to the person as fully paid up units under section 20C or otherwise.
For the purposes of subsection (1), the employer-financed pension component in relation to a person 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 person on the person’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 person with any one or more employers.
T is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the person’s exit day precedes—
the date on which the person attains the maturity age, or
where any employment which, on the person’s exit day, the person is entitled to count as service for the purposes of section 21 is, in total, for less than a period of 10 years—the expiration of the balance of that period of 10 years,
whichever is the later.
For the purposes of subsection (2), the relevant amount in relation to a person for an additional unit of pension on the person’s exit day is—
where the person has attained the prescribed age on or before that day, the amount which, if the person were required under Division 5 of Part 3 to commence to contribute for an additional unit of pension on that day, would be the amount payable in accordance with the tables of contributions fixed under section 10AD for that unit for a contribution period, or
where the person has not attained the prescribed age on or before that day, the amount equal to the sum of—
the amount payable by the person for any additional unit of pension for which the person had been required to commence contributing on and from the person’s last annual adjustment day for a contribution period or, as the case may be, the amount that would have been so payable if the person had been so required, and
for each day of the period commencing on the day following that annual adjustment day and ending on the person’s exit day, the amount equal to 1/364th part of the difference between the amount referred to in subparagraph (i) and the amount which that amount would have been if, on that annual adjustment day, the person had been 1 year older than the age actually attained.
For the purposes of subsection (3), 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).
If STC has made a determination under section 61RA in respect of a pension payable under this Division, the amount of the pension is reduced by the amount specified in STC’s determination.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.