Adjustment of pension components
52B Adjustment of pension components
Expressions used in this section have the same meanings as they have in Division 6.
Where—
the employer-financed pension component in relation to a person is calculated under this Division as at the person’s exit day,
pensions are adjusted under Division 6 by a percentage for a year commencing after the exit day, and
no benefit became payable under this Division during that year to, or by virtue of the death of, the person,
the component, as so calculated and as previously adjusted under this section, is, as from the adjustment date for that year, adjusted by that percentage.
Where—
the employer-financed pension component in relation to a person is calculated under this Division as at the person’s exit day,
pensions are adjusted under Division 6 by a percentage for a year commencing on or before the exit day and ending after the exit day, and
no benefit became payable under this Division during that year to, or by virtue of the death of, the person,
the component, as so calculated, is, as from the adjustment date for that year, adjusted by the percentage calculated in accordance with the following formula—
where—
A is the percentage by which the component is to be adjusted.
P is the percentage for the year by which pensions are adjusted.
Q is the number of whole quarters of the year, being the whole quarters after the exit day.
Where—
a pension under this Division, or a pension that is calculated by reference to a pension that is payable under this Division, has become payable to or in respect of a person referred to in section 52A, and
pensions are adjusted under Division 6 by a percentage for a year beginning before and ending after the date on which that pension became so payable,
the pension, as from the adjustment date for that year, is, in addition to any adjustment of the pension under Division 6, adjusted by the amount calculated in accordance with the following formula—
where—
A represents the amount of the pension as adjusted.
C2 represents—
in the case of a pension payable under section 52C or 52E to a person—the amount of the employer-financed pension component calculated in relation to the person and as adjusted by the operation (if any) of this section before the pension became payable, or
in the case of a pension payable under section 52D to a person—the amount obtained in relation to the person from the calculation, under that section, of the formula , or
in the case of a pension payable under this Division to the spouse or de facto partner of a person referred to in section 52A (1)—an amount equal to two-thirds of the amount of the employer-financed pension component calculated in relation to that person and as adjusted by the operation (if any) of this section before the pension became payable, or
in the case of a pension of a spouse or de facto partner that is calculated by reference to a pension that was payable to a person under this Division—an amount equal to two-thirds of the amount referred to in paragraph (a) or (b), as the case may be, in relation to that person.
P represents the percentage for the year by which pensions are adjusted.
Q represents the number derived by adding together the following—
except when paragraph (b) applies—“1” (representing the quarter of the year during which the pension became payable),
if the pension became payable on the first day of a quarter, “0”,
the smaller of—
the number of whole quarters in that year that have occurred before the day on which the pension became payable, and
the number of whole quarters that have occurred since the exit day of the person to or in respect of whom the pension is payable and before the day on which the pension became payable.
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