Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 (Cth)

Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 No. 58, 2004 An Act to amend legislation relating to superannuation, and for related purposes Contents 1 Short title 2 Commencement 3 Schedule(s) 4 Application of family law interest‑splitting amendments 5 Application of indexation amendments Schedule 1—Family law superannuation splitting and other matters Defence Act 1903 Defence Force Retirement and Death Benefits Act 1973 Defence Forces Retirement Benefits Act 1948 Military Superannuation and Benefits Act 1991 Parliamentary Contributory Superannuation Act 1948 Superannuation Act 1922 Superannuation Act 1976 Superannuation Act 1990 Schedule 2—Indexation under the Defence Forces Retirement Benefits Act Defence Forces Retirement Benefits Act 1948 Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 No. 58, 2004 An Act to amend legislation relating to superannuation, and for related purposes [Assented to 4 May 2004] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 5 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent 4 May 2004 2. Schedule 1 The 14th day after the day on which this Act receives the Royal Assent 18 May 2004 3. Schedule 2 The day on which this Act receives the Royal Assent 4 May 2004 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table is for additional information that is not part of this Act. This information may be included in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Application of family law interest‑splitting amendments (1) The family law interest‑splitting amendments apply to: (a) any splitting agreement, or splitting order, that has an operative time after the commencement of Schedule 1; and (b) a splitting agreement, or splitting order, with an earlier operative time, if no benefits had become payable before the commencement of Schedule 1 in respect of the superannuation interest to which the agreement or order relates. (2) In this section: family law interest‑splitting amendments means the amendments made by Schedule 1, other than items 24 and 34. 5 Application of indexation amendments The amendments made by Schedule 2 apply: (a) for the purpose of working out an increase in the rate of a pension benefit that is payable immediately before: (i) the prescribed half‑year beginning on 1 January 2004; and (ii) each subsequent prescribed half‑year; and (b) for any other purpose related to the purpose mentioned in paragraph (a). Schedule 1—Family law superannuation splitting and other matters Defence Act 1903 1 At the end of section 52 Add: (5) Determinations may make provision for, and in relation to, reducing a superannuation benefit under the determinations in a case where a person becomes entitled to benefits under the Military Superannuation and Benefits Act 1991 in circumstances mentioned in subparagraph 5A(1)(b)(i) of that Act. Note: Section 5A of the Military Superannuation and Benefits Act 1991 provides for superannuation benefits for a non‑member spouse in respect of splitting agreements and splitting orders under the Family Law Act 1975. (6) Reductions referred to in subsection (5) are to be disregarded in applying subsection (3A). Defence Force Retirement and Death Benefits Act 1973 2 At the end of section 6C Add: (4) Reductions under Division 3 of Part VIA are to be disregarded in applying subsection (3) of this section. 3 After Part VI Insert: Part VIA—Family law superannuation splitting Division 1—Preliminary 49A Definitions In this Part, unless the contrary intention appears: associate pension means associate pension under section 49B. base amount means: (a) for a splitting agreement—the base amount specified in, or calculated under, the agreement; or (b) for a splitting order—the amount allocated under subsection 90MT(4) of the Family Law Act 1975. family law value means the amount determined in accordance with regulations under the Family Law Act 1975 that apply for the purposes of paragraph 90MT(2)(a) of the Family Law Act 1975. In applying those regulations, the relevant date is taken to be the date on which the operative time occurs. Note: This amount is determined by applying those regulations, whether or not an order has been made under subsection 90MT(1) of the Family Law Act 1975. member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑standard pension means a pension benefit other than standard pension. operative time, in relation to a splitting agreement or splitting order, means the time that is the operative time for the purposes of Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order. Orders means Orders under section 49F. original interest means a superannuation interest to which section 49B applies. payment split has the same meaning as in Part VIIIB of the Family Law Act 1975. scheme value means the amount determined under the Orders. splitting agreement means: (a) a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or (b) a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split. splitting order has the same meaning as in Part VIIIB of the Family Law Act 1975. splitting percentage means: (a) for a splitting agreement—the percentage specified in the agreement under subparagraph 90MJ(1)(c)(iii) of the Family Law Act 1975; or (b) for a splitting order—the percentage specified in the order under subparagraph 90MT(1)(b)(i) of the Family Law Act 1975. standard pension means any of the following: (a) retirement pay; (b) invalidity benefit; (c) pension under section 38 or 39; (d) pension under section 43A; (e) associate pension. superannuation interest has the same meaning as in Part VIIIB of the Family Law Act 1975. transfer amount means: (a) if a splitting percentage applies—the amount calculated by multiplying the splitting percentage by the greater of: (i) the family law value; and (ii) the scheme value; or (b) if a base amount applies and the scheme value is not more than the family law value—the base amount; or (c) if a base amount applies and the scheme value is more than the family law value—the amount calculated using the formula: Division 2—Benefits for non‑member spouse 49B Associate pension for non‑member spouse if operative time in payment phase (1) This section applies to a superannuation interest (the original interest) if: (a) the Authority receives a splitting agreement or splitting order in respect of the original interest; and (b) the original interest is not an entitlement to pension under section 42 or 43; and (c) the member spouse and the non‑member spouse are both alive at the operative time; and (d) if a base amount applies—the base amount at the operative time is not more than the family law value or the scheme value. (2) If, at the operative time, standard pension is payable in respect of the original interest, then the non‑member spouse is entitled to associate pension from the operative time, at the rate calculated under the Orders by reference to the transfer amount. Note: If standard pension is not payable at the operative time in respect of the original interest, then the non‑member spouse will be entitled to benefits under the Military Superannuation and Benefits Act 1991. 49C Commutation of small associate pension (1) If the annual rate of associate pension to which the non‑member spouse becomes entitled is less than the amount determined under the Orders, then the non‑member spouse may elect to commute the pension. (2) The election must be made in writing to the Chairman not later than 3 months after the non‑member spouse becomes entitled to the pension. (3) If the non‑member spouse makes the election, then the non‑member spouse is entitled instead to a lump sum equal to the transfer amount. Division 3—Reduction of benefits for member spouse 49D Operative time during growth phase—reduction of later standard pension or lump sum amount (1) If: (a) at the operative time, standard pension is not payable in respect of the original interest; and (b) after the operative time, standard pension becomes payable to the member spouse in respect of the original interest; then the annual rate of that standard pension is reduced to the amount calculated under the Orders. Note: If the member spouse dies before becoming entitled to standard pension, then subsection (1) will nevertheless result in an indirect reduction of any widow's pension that becomes payable. This happens because the amount of the widow's pension is based on the amount of invalidity pay (a standard pension) that would have become payable to the member spouse at the time of death. (2) A reduction under subsection (1) is to be disregarded in calculating the amount of any non‑standard pension that later becomes payable. Note: For example, the reduction will be disregarded in calculating the amount of pension under section 42 payable to a child of the member spouse after the member spouse's death. (3) If: (a) at the operative time, standard pension is not payable in respect of the original interest; and (b) after the operative time, a lump sum amount becomes payable, in respect of the original interest, under section 32, 48, 48A, 56, 57 or 77; then that lump sum amount is reduced to the amount calculated under the Orders. 49E Operative time during payment phase—reduction of standard pension (1) If, at the operative time, standard pension is payable to the member spouse in respect of the original interest, then the annual rate of that pension is reduced to the amount calculated under the Orders. (2) A reduction under this section is to be disregarded in calculating the amount of any non‑standard pension that later becomes payable. Note: For example, the reduction will be disregarded in calculating the amount of pension under section 42 payable to a child of the member spouse after the member spouse's death. Division 4—Miscellaneous 49F Ministerial Orders (1) The Minister may make Orders prescribing matters required or permitted by this Part to be prescribed. (2) An Order is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. (3) An Order is taken to be a statutory rule for the purposes of the Statutory Rules Publication Act 1903. Defence Forces Retirement Benefits Act 1948 4 Before subsection 57(1) Insert: (1AA) A male person is not to be treated as a male pensioner for the purposes of this section merely because the person, at the time of his death, was receiving associate pension under Part VIA. 5 At the end of section 58 Add: (3) A person is not to be treated as a pensioner for the purposes of this section merely because the person, at the time of his or her death, was receiving associate pension under Part VIA. 6 After Part V Insert: Part VIA—Family law superannuation splitting Division 1—Preliminary 80A Definitions In this Part, unless the contrary intention appears: associate pension means associate pension under section 80B. base amount means: (a) for a splitting agreement—the base amount specified in, or calculated under, the agreement; or (b) for a splitting order—the amount allocated under subsection 90MT(4) of the Family Law Act 1975. Chairman means the Chairman of the Authority. family law value means the amount determined in accordance with regulations under the Family Law Act 1975 that apply for the purposes of paragraph 90MT(2)(a) of the Family Law Act 1975. In applying those regulations, the relevant date is taken to be the date on which the operative time occurs. Note: This amount is determined by applying those regulations, whether or not an order has been made under subsection 90MT(1) of the Family Law Act 1975. member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑standard pension means pension under this Act other than standard pension. operative time, in relation to a splitting agreement or splitting order, means the time that is the operative time for the purposes of Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order. Orders means Orders under section 80E. original interest means a superannuation interest to which section 80B applies. payment split has the same meaning as in Part VIIIB of the Family Law Act 1975. scheme value means the amount determined under the Orders. splitting agreement means: (a) a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or (b) a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split. splitting order has the same meaning as in Part VIIIB of the Family Law Act 1975. splitting percentage means: (a) for a splitting agreement—the percentage specified in the agreement under subparagraph 90MJ(1)(c)(iii) of the Family Law Act 1975; or (b) for a splitting order—the percentage specified in the order under subparagraph 90MT(1)(b)(i) of the Family Law Act 1975. standard pension means any of the following: (a) pension under section 38, 39, 41 or 43; (b) invalidity benefit; (c) pension under section 55 or 57; (d) associate pension. superannuation interest has the same meaning as in Part VIIIB of the Family Law Act 1975. transfer amount means: (a) if a splitting percentage applies—the amount calculated by multiplying the splitting percentage by the greater of: (i) the family law value; and (ii) the scheme value; or (b) if a base amount applies and the scheme value is not more than the family law value—the base amount; or (c) if a base amount applies and the scheme value is more than the family law value—the amount calculated using the formula: Division 2—Benefits for non‑member spouse 80B Associate pension for non‑member spouse (1) This section applies to a superannuation interest under this Act (the original interest) if: (a) the Chairman receives a splitting agreement or splitting order in respect of the original interest; and (b) the original interest is not an entitlement to pension under paragraph 57(1)(b), subsection 57(4) or (5) or section 58; and (c) the member spouse and the non‑member spouse are both alive at the operative time; and (d) if a base amount applies—the base amount at the operative time is not more than the family law value or the scheme value. (2) The non‑member spouse is entitled to associate pension from the operative time, at the rate calculated under the Orders by reference to the transfer amount. 80C Commutation of small associate pension (1) If the annual rate of associate pension to which the non‑member spouse becomes entitled is less than the amount determined under the Orders, then the non‑member spouse may elect to commute the pension. (2) The election must be made in writing to the Chairman not later than 3 months after the non‑member spouse becomes entitled to the pension. (3) If the non‑member spouse makes the election, then the non‑member spouse is entitled instead to a lump sum equal to the transfer amount. Division 3—Reduction of benefits for member spouse 80D Reduction of standard pension (1) The annual rate of standard pension that is payable at the operative time in respect of the original interest is reduced to the amount calculated under the Orders. (2) A reduction under this section is to be disregarded in calculating the amount of any non‑standard pension that later becomes payable. Note: For example, the reduction will be disregarded in calculating the amount of pension under paragraph 57(1)(b) payable in respect of a child of the member spouse after the member spouse's death. Division 4—Miscellaneous 80E Ministerial Orders (1) The Minister may make Orders prescribing matters required or permitted by this Part to be prescribed. (2) An Order is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. (3) An Order is taken to be a statutory rule for the purposes of the Statutory Rules Publication Act 1903. 7 Subsection 83(1) (at the end of the definition of pension) Add ", but does not include associate pension under Part VIA of this Act". Military Superannuation and Benefits Act 1991 8 Subsection 3(1) Insert: associate benefit means a benefit that is payable under provisions of the Trust Deed that are authorised by section 5A. 9 At the end of Part 2 Add: 5A Amendments of Trust Deed to implement family law interest splitting (1) Without limiting subsection 5(1), amendments under that subsection: (a) may provide that, when a splitting agreement or splitting order is received by the Board in respect of a superannuation interest under this Act: (i) the non‑member spouse is entitled to benefits determined in accordance with the Rules; and (ii) the benefits of the member spouse are reduced in accordance with the Rules; and (b) may provide that, when a splitting agreement or splitting order is received by the Board in respect of a superannuation interest under: (i) section 52 of the Defence Act 1903; or (ii) the Defence Force Retirement and Death Benefits Act 1973; the non‑member spouse is entitled to benefits determined in accordance with the Rules; and (c) may make any other provision that is related to, or consequential on, provisions referred to in paragraph (a) or (b). (2) Subparagraph (1)(b)(ii) does not apply in a case covered by subsection 49B(2) of the Defence Force Retirement and Death Benefits Act 1973. (3) Subsection 48(2) of the Acts Interpretation Act 1901 does not apply to amendments referred to in subsection (1) of this section. (4) In this section: member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. splitting agreement means: (a) a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or (b) a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split (within the meaning of Part VIIIB of the Family Law Act 1975). splitting order has the same meaning as in Part VIIIB of the Family Law Act 1975. superannuation interest has the same meaning as in Part VIIIB of the Family Law Act 1975. 10 After section 16 Insert: 16A Payments relating to associate benefits (1) Where an associate benefit becomes payable under the Rules, the Commonwealth must pay the benefit to such person or persons as are appropriate under the Rules. (2) The Board must pay to the Commonwealth any amount that the Board is required under the Rules to pay to the Commonwealth in respect of an associate benefit. 11 After subsection 46(1) Insert: (1A) A person who is, or has ceased to be, an associate is subject to the Rules to the extent that they are applicable in relation to the person. For this purpose, associate means a person to whom an associate benefit is payable. Parliamentary Contributory Superannuation Act 1948 11A Subsection 4(1) (at the end of the definition of annuity) Add ", including an associate annuity under section 22CD or 22CE". 11B At the end of section 4E Add: (4) Reductions under Division 3 of Part VAA are to be disregarded in applying subsection (3). 11C After subsection 18(8A) Insert: (8AAA) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (8A) of this section. 11D After subsection 18(8AC) Insert: (8ACA) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (8AC) of this section. 11E After subsection 18B(15) Insert: (15A) Any reduction under section 22CH is to be disregarded in applying the definition of basic rate in subsection (15) of this section. 11F After Part V Insert: Part VAA—Family law superannuation splitting Division 1—Preliminary 22CA Definitions In this Part, unless the contrary intention appears: additional service factor at the operative time has the meaning given by section 22CC. additional service factor at the payment time has the meaning given by section 22CC. affected benefit means the affected benefit referred to in section 22CH. applicable additional percentage means the percentage that is applied to the rate of salary, or allowance by way of salary, payable in respect of an office in order to calculate: (a) the annual rate of an additional retiring allowance; or (b) the annual rate of an annuity. applicable basic percentage means the percentage that is applied to the rate of parliamentary allowance in order to calculate: (a) the annual rate of a retiring allowance (other than additional retiring allowance); or (b) the annual rate of an annuity. associate annuity means an annuity under section 22CD or 22CE. associate deferred annuity means an associate deferred annuity under section 22CE. associate immediate annuity means an associate immediate annuity under section 22CD. base amount means: (a) for a splitting agreement—the base amount specified in, or calculated under, the agreement; or (b) for a splitting order—the amount allocated under subsection 90MT(4) of the Family Law Act 1975. basic service factor at the operative time has the meaning given by section 22CB. basic service factor at the payment time has the meaning given by section 22CB. family law value means the amount determined in accordance with regulations under the Family Law Act 1975 that apply for the purposes of paragraph 90MT(2)(a) of the Family Law Act 1975. In applying those regulations, the relevant date is taken to be the date on which the operative time occurs. Note: This amount is determined by applying those regulations, whether or not an order has been made under subsection 90MT(1) of the Family Law Act 1975. member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975. non‑standard annuity means an annuity other than a standard allowance or annuity. operative time, in relation to a splitting agreement or splitting order, means the time that is the operative time for the purposes of Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order. Orders means Orders under section 22CK. original interest means a superannuation interest to which section 22CD applies. payment split has the same meaning as in Part VIIIB of the Family Law Act 1975. payment time, in relation to the affected benefit, means the time when the benefit becomes payable. scheme value means the amount determined under the Orders. Secretary means the Secretary of the Department. section 16A amount means the total referred to in paragraph 16A(1)(c). section 22Q amount means the employer component, or the sum of the employer components, referred to in paragraph 22Q(5)(c). splitting agreement means: (a) a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or (b) a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split. splitting order has the same meaning as in Part VIIIB of the Family Law Act 1975. splitting percentage means: (a) for a splitting agreement—the percentage specified in the agreement under subparagraph 90MJ(1)(c)(iii) of the Family Law Act 1975; or (b) for a splitting order—the percentage specified in the order under subparagraph 90MT(1)(b)(i) of the Family Law Act 1975. standard allowance or annuity means: (a) a retiring allowance; or (b) an annuity, other than an annuity under section 19AA. superannuation interest has the same meaning as in Part VIIIB of the Family Law Act 1975. transfer amount means: (a) if a splitting percentage applies—the amount calculated by multiplying the splitting percentage by the greater of: (i) the family law value; and (ii) the scheme value; or (b) if a base amount applies and the scheme value is not more than the family law value—the base amount; or (c) if a base amount applies and the scheme value is more than the family law value—the amount calculated using the formula: transfer factor means the number calculated by dividing the number of whole dollars in the transfer amount by the number of whole dollars in the scheme value. 22CB Basic service factor (1) In calculating the annual rate of the affected benefit in accordance with section 22CH, the basic service factor at the payment time and the basic service factor at the operative time are worked out under this section. Period of service at least 8 years (2) If the period of service is at least 8 years, then: (a) the basic service factor at the payment time is the number calculated, by reference to the member spouse's period of service before the payment time, by adding: (i) for service that occurred within the first 8 years—0.0625 for each full year; and (ii) for service that occurred within the next 10 years: (A) 0.025 for each full year; and (B) 0.025/365 for each left‑over day; and (b) the basic service factor at the operative time is the number calculated, by reference to the member spouse's period of service before the operative time, by adding: (i) for service that occurred within the first 8 years: (A) 0.0625 for each full year; and (B) 0.0625/365 for each left‑over day; and (ii) for service that occurred within the next 10 years: (A) 0.025 for each full year; and (B) 0.025/365 for each left‑over day. Period of service less than 8 years—retiring allowance (not under subsection 18(2AA)) (3) If the period of service is less than 8 years and the affected benefit is a retiring allowance (other than an allowance under subsection 18(2AA)), then: (a) the basic service factor at the payment time is 0.5; and (b) the basic service factor at the operative time is the number calculated using the formula: Period of service less than 8 years—retiring allowance under paragraph 18(2AA)(b) or (c) or annuity under paragraph 19(1)(a) (4) If the period of service is less than 8 years and the affected benefit is a retiring allowance under paragraph 18(2AA)(b) or (c) or an annuity under paragraph 19(1)(a), then: (a) the basic service factor at the payment time is 0.5; and (b) the basic service factor at the operative time is the number calculated, by reference to the member spouse's period of service before the operative time, by adding: (i) 0.0625 for each full year; and (ii) 0.0625/365 for each left‑over day. Period of service less than 8 years—retiring allowance under paragraph 18(2AA)(d) (5) If the period of service is less than 8 years and the affected benefit is a retiring allowance under paragraph 18(2AA)(d), then: (a) the basic service factor at the payment time is 0.3; and (b) the basic service factor at the operative time is the number calculated, by reference to the member spouse's period of service before the operative time, by adding: (i) 0.0375 for each full year; and (ii) 0.0375/365 for each left‑over day. 22CC Additional service factor (1) In calculating the annual rate of the affected benefit in accordance with section 22CH, the additional service factor at the payment time and the additional service factor at the operative time are worked out under this section. Where subsection 18(10B) does not apply (2) If subsection 18(10B) does not apply, then: (a) for each office, the additional service factor at the payment time is the number calculated, by reference to the member spouse's period of service in the office before the payment time, by adding: (i) 0.0625 for each full year; and (ii) 0.0625/365 for each left‑over day; and (b) for each office, the additional service factor at the operative time is the number calculated, by reference to the member spouse's period of service in the office before the operative time, by adding: (i) 0.0625 for each full year; and (ii) 0.0625/365 for each left‑over day. Where paragraph 18(10B)(a) applies (one office) (3) If paragraph 18(10B)(a) applies, then: (a) the additional service factor at the payment time is 0.75; and (b) the additional service factor at the operative time is: (i) if the period of service in the office is at least 12 years—0.75; or (ii) otherwise—the number calculated, by reference to the member spouse's period of service in the office before the operative time, by adding: (A) 0.0625 for each full year; and (B) 0.0625/365 for each left‑over day. Where paragraph 18(10B)(b) applies (highest‑paid office) (4) If paragraph 18(10B)(b) applies, then: (a) the additional service factor at the payment time is 0.75; and (b) if, at the operative time, the member spouse is not entitled to parliamentary allowance, then the additional service factor at the operative time for the highest‑paid office to which paragraph 18(10B)(b) applies is 0.75; and (c) if, at the operative time, the member spouse is entitled to parliamentary allowance, then the additional service factor at the operative time for the highest‑paid office to which paragraph 18(10B)(b) applies is worked out as follows: (i) calculate a factor under paragraph (2)(b) of this section for each office referred to in paragraph 18(10B)(b), other than an office for which the period of service began after the operative time; (ii) for each such factor, calculate a weighted factor under subsection (6) of this section; (iii) add together the weighted factors calculated under subparagraph (ii) of this paragraph. (5) If the additional service factor at the operative time, worked out under paragraph (4)(c), would be more than 0.75, then it is taken to be 0.75. (6) The weighted factor is calculated using the formula: where: salary for highest office means the number of whole dollars in the salary applicable at the payment time to the office referred to in paragraph 18(10B)(b) that had the highest rate of salary, or allowance by way of salary, at the payment time. salary for the office means the number of whole dollars in the salary, or allowance by way of salary, applicable to the office at the payment time. Division 2—Benefits for non‑member spouse 22CD Associate annuity for non‑member spouse (1) This section applies to a superannuation interest under this Act (the original interest) if: (a) the Secretary receives a splitting agreement or splitting order in respect of the original interest; and (b) the original interest is not an entitlement to an annuity under section 19AA; and (c) the member spouse and the non‑member spouse are both alive at the operative time; and (d) if a base amount applies—the base amount at the operative time is not more than the family law value or the scheme value. Immediate annuity if operative time in payment phase (2) If, at the operative time, standard allowance or annuity is payable in respect of the original interest,