Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a release authority lump sum is paid in relation to a release authority issued to a person, any benefits to which the person is entitled under this Act must be reduced to reflect the release authority lump sum.
(2) If:
(a) a release authority lump sum is paid in relation to a release authority issued to a person; and
(b) the person is entitled to retirement pay or invalidity pay;
the rate at which retirement pay or invalidity pay is payable to the person is to be reduced so that it equals the amount worked out using this formula:
where:
conversion factor means the factor that is applicable to the person under the determination made by CSC under subsection (3).
pre - reduction rate means the annual rate at which retirement pay or invalidity pay would, apart from this section (but having regard to any other provisions of this Act that affect that rate at the time), be payable to the person at the time that pay becomes payable.
(3) CSC may, by legislative instrument, determine the conversion factor, or the method for working out the conversion factor, for the purposes of subsection (2).