10.25.8.40 Proportional Income - Agreement with Finland
Proportional income
Article 14, paragraph 2 of the Agreement provides that only a proportion of Finnish Earnings-Related Pension is to be assessed as income when calculating the rate of Australian Age. This concessional treatment only applies when the person's Australian age pension is also proportionalised (10.1.9.40).
That proportion is calculated by multiplying the number of whole months of Australian working life residence accumulated by that person (not exceeding 300) by the amount of that benefit under the legislation of Finland and dividing that product by 300.
Finnish National Pension is not included in this proportionalisation concession.
Act reference: SS(IntAgree)Act Schedule 24 Republic of Finland
Policy reference: SS Guide 10.1.9.40 Calculating proportional income under agreements, 10.25.8.10 Rate Calculation - Background (Agreement with Finland), 10.25.8.20 Outside Australia Rate - Agreement with Finland