Commonwealth Consolidated Regulations

FAMILY LAW (SUPERANNUATION) REGULATIONS 2001 - SCHEDULE 1A

(subregulation 14N (7))

1              Application of Schedule 1A

                This Schedule sets out the method for calculating, for the purposes of regulation 14N, the value at a particular time of a non‑member spouse's entitlement in respect of a percentage‑only interest that is in the payment phase.

2              Method

         (1)   If no benefit other than a pension is payable to the member spouse in respect of the interest, the value at a particular time of the non‑member spouse's entitlement in respect of the interest is calculated as follows:

where:

"Accrued benefit multiple at separation" is the member spouse's accrued benefit multiple, as defined in the governing rules of the eligible superannuation plan in which the superannuation interest is held, at the date when the member spouse and non-member spouse separated or, if there have been 2 or more separations, at the date of the most recent separation.

"Accrued benefit multiple at payment" is the member spouse's accrued benefit multiple, as defined in the governing rules of the eligible superannuation plan in which the superannuation interest is held, at the date when the new interest is created, or the amount is transferred or rolled over or paid to the non-member spouse, or a separate entitlement for the non-member spouse arose.

"X" is the percentage specified in the relevant superannuation agreement, flag lifting agreement or splitting order.

"YP" is the amount of pension payable each year to the member spouse.

P _y+m is the pension valuation factor under Schedule 4 that applies to the particular pension payable to the member spouse at the member spouse's age at the date when the new interest is created, or the amount is transferred or rolled over or paid to the non-member spouse, or a separate entitlement for the non-member spouse arose.

"r" is:

                (a)    if there is a surviving spouse of the member spouse -- the reversionary percentage that would be payable to the surviving spouse if the member spouse had died on the day when the new interest is created, or the amount is transferred or rolled over or paid to the non‑member spouse, or a separate entitlement for the non‑member spouse arose; and

               (b)    in any other case -- zero.

R _y+m is the reversion valuation factor calculated in accordance with subclause (3).

"F" is the amount of any fees payable by the non-member spouse under regulation 59.

         (2)   If another benefit, in addition to a pension, is payable to the member spouse in respect of the interest, the value at a particular time of the non‑member spouse's entitlement in respect of the interest is calculated as follows:

where:

"Accrued benefit multiple at separation" has the same meaning as in subclause (1).

"Accrued benefit multiple at payment" has the same meaning as in subclause (1).

"X" has the same meaning as in subclause (1).

"YP" has the same meaning as in subclause (1).

P _y+m has the same meaning as in subclause (1).

"r" has the same meaning as in subclause (1).

R _y+m has the same meaning as in subclause (1).

"OB" is the amount of the other benefit payable to the member spouse in respect of the interest multiplied by the relevant discount valuation factor that applies under clause 4 of Schedule 6.

"F" is the amount of any fees payable by the non-member spouse under regulation 59.

         (3)   For subclauses (1) and (2), the reversion valuation factor ( R _y+m ) at the particular time is:

where:

"R _y " is the reversion valuation factor mentioned in clause 3 of this Schedule that applies to the pension and the member spouse's age in completed years at the date when the new interest is created, or the amount is transferred or rolled over or paid to the non-member spouse, or a separate entitlement for the non-member spouse arose.

"m" is the number of completed months of the member spouse's age that are not included in the completed years at the date mentioned in the definition of the factor R _y .

R _y+1 is the reversion valuation factor mentioned in clause 3 of this Schedule that applies to the pension and the member spouse's age at the completion of the next year after the year mentioned in the definition of the factor R _y .

         (4)   For the purpose of applying the factor P _y+m in the formula in subclauses (1) and (2), a reference in Schedule 4 to 'the relevant date' is to be read as if it were a reference to 'the date when the new interest was created, or the amount was transferred or rolled over or paid to the non‑member spouse, or a separate entitlement for the non‑member spouse arose'.

         (5)   For the purpose of applying the factor OB in the formula in subclause (2):

                (a)    a reference in clause 4 of Schedule 6 to 'the lump sum' or 'a lump sum' is to be read as if it were a reference to 'the other benefit payable to the member spouse in respect of the superannuation interest'; and

               (b)    the minimum deferral period, in relation to the other benefit payable to the member spouse in respect of the superannuation interest, is the minimum period of time until the other benefit is payable.

3              Reversion valuation factors

         (1)   The table in this clause sets out the reversion valuation factors.

         (2)   The factors in columns 2 and 3 apply if the pension is indexed in accordance with the consumer price index.

         (3)   The factors in columns 4 and 5 apply if the pension is indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics).