(1)  A person who –

(a) has a benefit entitlement under the contributory scheme or this Part and who has ceased employment after attaining the preservation age; or

(b) is the surviving partner of a person having such an entitlement –

may elect to transfer the whole or a part of his or her benefits to an allocated pension account.

(2)  If a person makes an election under subregulation (1) , the Board is to credit to the allocated pension account –

(a) any investment earnings determined by the Board under regulation 113 ; and

(b) if the person so requests –

(i) any benefit transferred under subregulation (1) ; and

(ii) any benefit paid into the Fund under regulation 65 ; and

(iii) any other amount allowable under the law of the Commonwealth for the purpose of providing an allocated pension.

(3)  The Board is to debit to the allocated pension account –

(a) any allocated pension payment made under this regulation; and

(b) any capital withdrawal made from the allocated pension account which may be allowed under the law of the Commonwealth; and

(c) any tax or surcharge liability or other amounts required by law; and

(d) any administration fee and investment management fee sufficient to cover the cost of administering the allocated pension account as determined by the Board under regulation 69 .

(4)  On the establishment of an allocated pension account for a person and at any other time as the Board may determine, that person must notify the Board in writing of –

(a) the amount of allocated pension to be paid to him or her during a financial year which is to be subject to the allocated pension valuation factors permitted by the law of the Commonwealth; and

(b) the frequency of allocated pension instalments, whether fortnightly, monthly, quarterly or annually, to be paid during that financial year.

(5)  If a notification referred to in subregulation (4) is not received within a period determined by the Board, the Board is to determine the amount and frequency of the allocated pension instalments to be paid to the person having regard to the allocated pension valuation factors permitted by the law of the Commonwealth.

(6)  Subject to subregulation (4) , the Board must pay to the person in respect of whom the account is established an allocated pension instalment calculated in accordance with the following formula:

where –

AP is the allocated pension instalment to be paid to a person in respect of a financial year;

APB is the balance standing to the credit of the allocated pension account –

(a) on 1 July in the financial year in which the allocated pension payments are to be made; or

(b) if the account was established on a later date, on that date; or

(c) if there are deposits or withdrawals made in accordance with paragraph (b) of subregulation (2) or paragraph (b) of subregulation (3) , on a date determined by the Board having regard to the law of the Commonwealth;

PVF is the pension valuation factor applicable to the person entitled to the allocated pension, if the factor is, having regard to that person's age, within the range of allocated pension valuation factors permitted by the law of the Commonwealth;

T is 365 or, if the allocated pension account was established after 1 July in the current financial year, the number of days remaining in that financial year;

N is the number of instalments of pension remaining in the current financial year payable to the person entitled to the allocated pension in accordance with his or her election under subregulation (4) or the Board's determination under subregulation (5) .

(7)  An allocated pension ceases to be payable on the earlier of the following dates:

(a) the date of death of the person entitled to that pension;

(b) the date on which the amount held in the allocated pension account is extinguished.

(8)  The Board must suspend an allocated pension for the remainder of a financial year if the total amount of instalments of the pension paid during that financial year equals the maximum allocated pension for that financial year allowed by the law of the Commonwealth.

(9)  If a person entitled to an allocated pension dies, the Board must pay the balance of the allocated pension account as at the date of death in accordance with regulation 130 .