New South Wales Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1971 - SECT 21B

21B Calculation of pensions following conversion to lump sum

(1) This section applies where the amount of pension payable to a person is to be reduced, under section 20 (4) or 21, because of an election under section 20 to convert part of a pension entitlement to a lump sum.

(2) The annual pension is to be reduced:

(a) in the case of a person who, immediately before the commencement of the Parliamentary Contributory Superannuation (Amendment) Act 1989 , was a member or in receipt of a pension under this Part-by the amount of annual pension in respect of which the election was made, or

(b) in any other case-by an amount calculated in accordance with the following formula:

"R" represents the amount of the reduction.
"C" represents the amount of annual pension in respect of which the election concerned was made.
"E" represents the annual pension entitlement immediately before the election concerned was made.
"F" represents the amount that would be the current annual pension entitlement of the former member if he or she had not made the election concerned.

(3) In the event that any person:

(a) by becoming a member on a second or subsequent occasion, has become for a second or subsequent time entitled to a pension under this Part, and

(b) has made an election or elections under section 20,

the person’s pension is to be reduced in accordance with subsection (2) in respect of the first and any subsequent election made.

(4) In the case of a person to whom subsection (3) applies who makes more than one election:

(a) successive reductions of pension are to be calculated using the formula given in subsection (2) (a), in the case of a member referred to in subsection (2) (a), or subsection (2) (b), in the case of a member referred to in subsection (2) (b), and

(b) for the purposes of any such calculation, the values to be assigned to the symbols E and F in that formula are to reflect any reduction of annual pension entitlement resulting from previous calculations.