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, the benefits to which the person is entitled under this Act must be reduced to reflect the release authority lump sum, in accordance with the person's election under section 146RC.
(2) If the election specifies that a pension is to be reduced (but not to zero), the annual rate of the pension 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 (4).
"pre-reduction rate" means the annual rate of the pension that would, apart from this section (but having regard to any other provisions of this Act that affect that rate), be payable to the person on the pension reduction day mentioned in subsection (3).
"reduced release authority lump sum" means the amount of the release authority lump sum, reduced by the sum of each reduction made under a previous application of this section to a benefit to which the person is entitled.
(3) The reduction mentioned in subsection (2) takes effect from the day (the pension reduction day ) that is:
(a) if the pension has not started to be paid--the first pension pay day; or
(b) if the pension has started to be paid--the first pension pay day that occurs 14 days after the release authority was given to CSC.
(4) CSC may, by legislative instrument, determine the conversion factor, or the method for working out the conversion factor, for the purposes of subsection (2).