FAMILY LAW (SUPERANNUATION) REGULATIONS 2001 - SCHEDULE 2 Method for determining gross value of defined benefit interest
FAMILY LAW (SUPERANNUATION) REGULATIONS 2001 - SCHEDULE 2
Method for determining gross value of defined benefit interestThis Schedule sets out the method for determining the gross value, at the relevant date, of a defined benefit interest that is in the growth phase at that date.
(1) If the superannuation interest is held as a result of employment in which the member spouse is still engaged at the relevant date, the method is:
(a) if the benefit in respect of the interest is payable only as a lump sum--the method set out in Part 2 of this Schedule; and
(b) if the benefit in respect of the interest is payable only as a pension--the method set out in Part 3 of this Schedule; and
(c) if the benefit in respect of the interest is payable as a lump sum, a pension, or a combination of a lump sum and a pension--the method set out in Part 4 of this Schedule.
(2) If the superannuation interest is held as a result of employment in which the member spouse is no longer engaged at the relevant date and, under the governing rules of the plan in which the interest is held, the benefit in respect of the interest is payable on or after the relevant date, the method is:
(a) if the benefit in respect of the interest is payable only as a lump sum--the method set out in Part 5 of this Schedule; and
(b) if the benefit in respect of the interest is payable only as a pension--the method set out in Part 6 of this Schedule; and
(c) if the benefit in respect of the interest is payable as a lump sum, a pension, or a combination of a lump sum and a pension--the method set out in Part 7 of this Schedule.
(3) For the purposes of subclause (1) and (2), a member spouse is taken to be engaged in employment at the relevant date if, at that date, the member spouse is on paid or unpaid leave from, or for any reason suspended in relation to, that employment.
Part 2 -- Interest relating to current employment--benefit payable only as lump sum
(1) The method is:
where:
"A" is the value of the lump sum benefit that has accrued in respect of the interest at the relevant date, being the product of the member spouse's accrued benefit multiple for a lump sum, as provided by the trustee under section 90XZB or 90YZR of the Act, and the salary figure on which benefits in respect of the interest, at that date, would be based, assuming that the member spouse were eligible to retire at that date.
f y+m is the lump sum valuation factor calculated in accordance with subclause (2).
(2) For subclause (1), the lump sum valuation factor ( f y+m ) at the relevant date is calculated as follows:
where:
"f y " is the lump sum valuation factor mentioned in clause 4 of this Schedule that applies at the relevant date to the term remaining in complete years until the member spouse reaches the member's retirement age.
"m" is the number of complete months of the remaining term that are not included in the remaining complete years at the relevant date.
f y+1 is the lump sum valuation factor mentioned in clause 4 of this Schedule that would apply if the member spouse's term to retirement in complete years were one year more than the member spouse's term to retirement in complete years at the relevant date.
This clause sets out the lump sum valuation factors.
Remaining term until retirement | Lump sum valuation
factors |
44 | 0.3411 |
43 | 0.3497 |
42 | 0.3586 |
41 | 0.3677 |
40 | 0.3771 |
39 | 0.3869 |
38 | 0.3971 |
37 | 0.4077 |
36 | 0.4186 |
35 | 0.4301 |
34 | 0.4419 |
33 | 0.4542 |
32 | 0.4669 |
31 | 0.4800 |
30 | 0.4935 |
29 | 0.5065 |
28 | 0.5197 |
27 | 0.5333 |
26 | 0.5471 |
25 | 0.5612 |
24 | 0.5755 |
23 | 0.5903 |
22 | 0.6053 |
21 | 0.6207 |
20 | 0.6364 |
19 | 0.6525 |
18 | 0.6689 |
17 | 0.6857 |
16 | 0.7029 |
15 | 0.7204 |
14 | 0.7384 |
13 | 0.7567 |
12 | 0.7755 |
11 | 0.7947 |
10 | 0.8143 |
9 | 0.8345 |
8 | 0.8551 |
7 | 0.8763 |
6 | 0.8981 |
5 | 0.9206 |
4 | 0.9316 |
3 | 0.9446 |
2 | 0.9599 |
1 | 0.9782 |
0 | 1.0000 |
Part 3 -- Interest relating to current employment--benefit payable only as pension
(1) The method is:
where:
"VN" is the lump sum value of the accrued pension benefit in respect of the interest at the member's retirement age, calculated in accordance with subclause (2).
f y+m is the lump sum valuation factor calculated in accordance with subclause 3(2) of this Schedule.
(2) For subclause (1), the lump sum value of the accrued pension benefit in respect of the interest at the member's retirement age ( VN ) is calculated as follows:
where:
"B" is the value of the pension benefit that had accrued in respect of the interest at the relevant date, being the product of the member's accrued benefit multiple for a pension, as provided by the trustee under section 90XZB or 90YZR of the Act, and the salary figure on which benefits in respect of the interest, at that date, would be based, assuming that the member were eligible to retire at that date.
"P ra " is the pension valuation factor mentioned in the relevant clause of this Part that applies to the pension and the member's retirement age.
"R sa " is the reversion valuation factor mentioned in the relevant clause of this Part that applies to the pension and the member's age in completed years at the relevant date.
"r" is the proportion of payments in respect of the interest that a non-member spouse would receive as the reversionary beneficiary of the member, on the death of the member, as provided by the trustee under section 90XZB or 90YZR of the Act.
6 Valuation factors--no guarantee period--pension not indexed
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is not indexed.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 12.0764 | 12.9364 |
56 | 11.8886 | 12.7841 |
57 | 11.6943 | 12.6252 |
58 | 11.4934 | 12.4596 |
59 | 11.2862 | 12.2869 |
60 | 11.0730 | 12.1068 |
61 | 10.8540 | 11.9191 |
62 | 10.6295 | 11.7238 |
63 | 10.3997 | 11.5207 |
64 | 10.1653 | 11.3099 |
65 | 9.9265 | 11.0912 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 1.610 | 0.691 |
41 | 1.557 | 0.649 |
42 | 1.503 | 0.608 |
43 | 1.449 | 0.567 |
44 | 1.396 | 0.525 |
45 | 1.342 | 0.484 |
46 | 1.288 | 0.442 |
47 | 1.235 | 0.401 |
48 | 1.181 | 0.359 |
49 | 1.127 | 0.318 |
50 | 1.073 | 0.276 |
51 | 0.912 | 0.235 |
52 | 0.751 | 0.193 |
53 | 0.590 | 0.152 |
54 | 0.429 | 0.111 |
55 and over | 0.268 | 0.069 |
7 Valuation factors--no guarantee period--CPI indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed in accordance with the consumer price index.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.7468 |
17.2848 |
56 | 15.4181 | 16.9910 |
57 | 15.0833 | 16.6899 |
58 | 14.7428 | 16.3814 |
59 | 14.3970 | 16.0652 |
60 | 14.0464 | 15.7414 |
61 | 13.6917 | 15.4099 |
62 | 13.3333 | 15.0707 |
63 | 12.9718 | 14.7241 |
64 | 12.6079 | 14.3703 |
65 | 12.2423 | 14.0096 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.761 | 1.189 |
41 | 2.669 | 1.118 |
42 | 2.577 | 1.046 |
43 | 2.485 | 0.975 |
44 | 2.393 | 0.904 |
45 | 2.301 | 0.832 |
46 | 2.209 | 0.761 |
47 | 2.117 | 0.690 |
48 | 2.025 | 0.618 |
49 | 1.933 | 0.547 |
50 | 1.841 | 0.476 |
51 | 1.565 | 0.404 |
52 | 1.288 | 0.333 |
53 | 1.012 | 0.262 |
54 | 0.736 | 0.190 |
55 and over | 0.460 | 0.119 |
7A Valuation factors--no guarantee period--CPI indexed pension with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed in accordance with the consumer price index with a cap of 5%.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.5689 | 17.0704 |
56 | 15.2477 | 16.7844 |
57 |
14.9204 | 16.4912 |
58 | 14.5872 | 16.1904 |
59 | 14.2486 | 15.8821 |
60 | 13.9052 | 15.5660 |
61 | 13.5575 | 15.2421 |
62 | 13.2060 | 14.9106 |
63 | 12.8512 | 14.5715 |
64 | 12.4939 | 14.2252 |
65 | 12.1346 | 13.8719 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.700 | 1.162 |
41 | 2.610 | 1.093 |
42 | 2.520 | 1.023 |
43 | 2.430 | 0.953 |
44 | 2.340 | 0.883 |
45 | 2.250 | 0.814 |
46 | 2.160 | 0.744 |
47 | 2.070 | 0.674 |
48 | 1.980 | 0.604 |
49 | 1.890 | 0.535 |
50 | 1.800 | 0.465 |
51 | 1.530 | 0.395 |
52 | 1.260 | 0.325 |
53 | 0.990 | 0.256 |
54 | 0.720 | 0.186 |
55 and over | 0.450 | 0.116 |
8 Valuation factors--no guarantee period--CPI indexed pension plus 1%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1%.
| Pension valuation factors | |
Male | Female | |
55 | 17.7072 | 19.6689 |
56 | 17.2911 | 19.2823 |
57 |
16.8702 | 18.8890 |
58 | 16.4451 | 18.4890 |
59 | 16.0162 | 18.0823 |
60 | 15.5842 | 17.6687 |
61 | 15.1500 | 17.2484 |
62 | 14.7139 | 16.8216 |
63 | 14.2768 | 16.3886 |
64 | 13.8395 | 15.9499 |
65 | 13.4026 | 15.5057 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.469 |
1.497 |
41 | 3.354 | 1.407 |
42 | 3.238 | 1.317 |
43 | 3.122 | 1.228 |
44 | 3.007 | 1.138 |
45 | 2.891 | 1.048 |
46 | 2.776 | 0.958 |
47 | 2.660 | 0.868 |
48 | 2.544 | 0.779 |
49 | 2.429 | 0.689 |
50 | 2.313 | 0.599 |
51 | 1.966 | 0.509 |
52 | 1.619 | 0.419 |
53 | 1.272 | 0.329 |
54 | 0.925 | 0.240 |
55 and over |
0.578 | 0.150 |
9 Valuation factors--no guarantee period--CPI indexed pension plus 1% with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1% with a cap of 5%.
Member's retirement age | Pension valuation
factors | |
Male | Female | |
55 | 17.2871 | 19.1547 |
56 | 16.8903 | 18.7889 |
57 | 16.4885 | 18.4163 |
58 | 16.0820 | 18.0367 |
59 | 15.6714 | 17.6501 |
60 | 15.2573 | 17.2564 |
61 | 14.8404 | 16.8558 |
62 | 14.4213 | 16.4483 |
63 | 14.0007 | 16.0344 |
64 | 13.5793 | 15.6143 |
65 | 13.1579 | 15.1883 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.313 | 1.429 |
41 | 3.202 | 1.343 |
42 | 3.092 | 1.257 |
43 | 2.981 | 1.172 |
44 | 2.871 | 1.086 |
45 | 2.760 | 1.000 |
46 | 2.650 | 0.914 |
47 | 2.540 | 0.829 |
48 | 2.429 | 0.743 |
49 | 2.319 | 0.657 |
50 | 2.208 | 0.572 |
51 | 1.877 | 0.486 |
52 | 1.546 | 0.400 |
53 | 1.215 | 0.314 |
54 | 0.883 | 0.229 |
55 and over | 0.552 | 0.143 |
10 Valuation factors--no guarantee period--wage indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics).
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 18.8258 | 21.0463 |
56 | 18.3565 | 20.6017 |
57 | 17.8836 | 20.1513 |
58 | 17.4074 | 19.6949 |
59 | 16.9288 | 19.2325 |
60 | 16.4483 | 18.7641 |
61 | 15.9668 | 18.2900 |
62 | 15.4849 | 17.8104 |
63 | 15.0034 | 17.3256 |
64 | 14.5232 | 16.8361 |
65 | 14.0448 | 16.3424 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.900 | 1.685 |
41 | 3.770 | 1.584 |
42 | 3.640 | 1.483 |
43 | 3.510 | 1.382 |
44 | 3.380 | 1.280 |
45 | 3.250 | 1.179 |
46 | 3.120 | 1.078 |
47 | 2.990 | 0.977 |
48 | 2.860 | 0.876 |
49 | 2.730 | 0.775 |
50 | 2.600 | 0.674 |
51 | 2.210 | 0.573 |
52 | 1.820 | 0.472 |
53 | 1.430 | 0.371 |
54 | 1.040 | 0.270 |
55 and over | 0.650 | 0.168 |
11 Valuation factors--no guarantee period--pension indexed at 3%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed at 3%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 16.6841 | 18.4198 |
56 | 16.3146 | 18.0830 |
57 | 15.9395 | 17.7392 |
58 | 15.5593 | 17.3881 |
59 | 15.1744 | 17.0298 |
60 | 14.7856 | 16.6641 |
61 | 14.3934 | 16.2910 |
62 | 13.9983 | 15.9108 |
63 | 13.6010 | 15.5236 |
64 | 13.2024 | 15.1299 |
65 | 12.8029 | 14.7298 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.092 | 1.333 |
41 | 2.989 | 1.253 |
42 | 2.886 | 1.173 |
43 | 2.783 | 1.093 |
44 | 2.680 | 1.013 |
45 | 2.577 | 0.933 |
46 | 2.474 | 0.853 |
47 | 2.371 | 0.773 |
48 | 2.268 | 0.693 |
49 | 2.164 | 0.613 |
50 | 2.061 | 0.533 |
51 | 1.752 | 0.453 |
52 | 1.443 | 0.373 |
53 | 1.134 | 0.293 |
54 | 0.825 | 0.213 |
55 and over | 0.515 | 0.133 |
12 Valuation factors--no guarantee period--pension indexed at 5%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has no guarantee period; and
(b) is indexed at 5%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 21.3952 | 24.2520 |
56 | 20.7954 | 23.6617 |
57 | 20.1954 | 23.0683 |
58 | 19.5956 | 22.4716 |
59 | 18.9968 | 21.8718 |
60 | 18.4000 | 21.2690 |
61 | 17.8059 | 20.6634 |
62 | 17.2152 | 20.0555 |
63 | 16.6287 | 19.4457 |
64 | 16.0475 | 18.8345 |
65 | 15.4722 | 18.2227 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 4.953 | 2.145 |
41 | 4.788 | 2.017 |
42 | 4.623 | 1.888 |
43 | 4.458 | 1.759 |
44 | 4.293 | 1.631 |
45 | 4.128 | 1.502 |
46 | 3.963 | 1.373 |
47 | 3.798 | 1.244 |
48 | 3.633 | 1.116 |
49 | 3.467 | 0.987 |
50 | 3.302 | 0.858 |
51 | 2.807 | 0.729 |
52 | 2.312 | 0.601 |
53 | 1.816 | 0.472 |
54 | 1.321 | 0.343 |
55 and over | 0.826 | 0.215 |
13 Valuation factors--5-year guarantee period--pension not indexed
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is not indexed.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 12.1315 | 12.9696 |
56 | 11.9499 | 12.8204 |
57 | 11.7625 | 12.6651 |
58 | 11.5694 | 12.5032 |
59 | 11.3710 | 12.3346 |
60 | 11.1674 | 12.1591 |
61 | 10.9591 | 11.9766 |
62 | 10.7465 | 11.7870 |
63 | 10.5298 | 11.5903 |
64 | 10.3097 | 11.3867 |
65 | 10.0866 | 11.1761 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 1.539 | 0.662 |
41 | 1.488 | 0.623 |
42 | 1.436 | 0.583 |
43 | 1.385 | 0.543 |
44 | 1.334 | 0.503 |
45 | 1.283 | 0.464 |
46 | 1.231 | 0.424 |
47 | 1.180 | 0.384 |
48 | 1.129 | 0.344 |
49 | 1.077 | 0.305 |
50 | 1.026 | 0.265 |
51 | 0.872 | 0.225 |
52 | 0.718 | 0.185 |
53 | 0.564 | 0.146 |
54 | 0.410 | 0.106 |
55 and over | 0.257 | 0.066 |
14 Valuation factors--5-year guarantee period--CPI indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed in accordance with the consumer price index.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.8066 |
17.3207 |
56 | 15.4846 | 17.0304 |
57 | 15.1573 | 16.7331 |
58 | 14.8253 | 16.4286 |
59 | 14.4889 | 16.1170 |
60 | 14.1488 | 15.7981 |
61 | 13.8057 | 15.4722 |
62 | 13.4602 | 15.1392 |
63 | 13.1129 | 14.7996 |
64 | 12.7646 | 14.4537 |
65 | 12.4160 | 14.1017 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.685 | 1.159 |
41 | 2.595 | 1.090 |
42 | 2.506 | 1.020 |
43 | 2.416 | 0.950 |
44 | 2.327 | 0.881 |
45 | 2.237 | 0.811 |
46 | 2.148 | 0.742 |
47 | 2.058 | 0.672 |
48 | 1.969 | 0.603 |
49 | 1.879 | 0.533 |
50 | 1.790 | 0.464 |
51 | 1.521 | 0.394 |
52 | 1.253 | 0.325 |
53 | 0.984 | 0.255 |
54 | 0.716 | 0.185 |
55 and over | 0.447 | 0.116 |
14A Valuation factors--5-year guarantee period--CPI indexed pension with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed in accordance with the consumer price index with a cap of 5%.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.6284 | 17.1062 |
56 | 15.3140 | 16.8237 |
57 | 14.9942 | 16.5342 |
58 | 14.6694 | 16.2376 |
59 | 14.3403 | 15.9337 |
60 | 14.0073 | 15.6225 |
61 | 13.6712 | 15.3042 |
62 | 13.3325 | 14.9789 |
63 | 12.9919 | 14.6468 |
64 | 12.6500 | 14.3083 |
65 | 12.3077 | 13.9636 |
Member's age
at relevant date | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.624 | 1.133 |
41 | 2.536 | 1.065 |
42 | 2.449 | 0.997 |
43 | 2.361 | 0.929 |
44 | 2.274 | 0.861 |
45 | 2.186 | 0.793 |
46 | 2.099 | 0.725 |
47 | 2.011 | 0.657 |
48 | 1.924 | 0.589 |
49 | 1.836 | 0.521 |
50 | 1.749 | 0.453 |
51 | 1.487 | 0.385 |
52 | 1.224 | 0.317 |
53 | 0.962 | 0.249 |
54 | 0.700 | 0.181 |
55 and over | 0.437 | 0.113 |
15 Valuation factors--5-year guarantee period--CPI indexed pension plus 1%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1%.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 17.7689 | 19.7060 |
56 | 17.3598 | 19.3230 |
57 |
16.9467 | 18.9337 |
58 | 16.5303 | 18.5379 |
59 | 16.1111 | 18.1357 |
60 | 15.6900 | 17.7273 |
61 | 15.2677 | 17.3127 |
62 | 14.8450 | 16.8924 |
63 | 14.4226 | 16.4666 |
64 | 14.0013 | 16.0359 |
65 | 13.5820 | 15.6008 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.391 | 1.467 |
41 | 3.278 | 1.379 |
42 | 3.165 | 1.291 |
43 | 3.052 | 1.203 |
44 | 2.939 | 1.115 |
45 | 2.826 | 1.027 |
46 | 2.713 | 0.939 |
47 | 2.600 | 0.851 |
48 | 2.487 | 0.763 |
49 | 2.374 | 0.675 |
50 | 2.261 | 0.587 |
51 | 1.922 | 0.499 |
52 | 1.583 | 0.411 |
53 | 1.243 | 0.323 |
54 | 0.904 | 0.235 |
55 and over | 0.565 | 0.147 |
16 Valuation factors--5-year guarantee period--CPI indexed pension plus 1% with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1% with a cap of 5%.
Member's retirement age | Pension valuation
factors | |
Male | Female | |
55 | 17.3484 | 19.1916 |
56 | 16.9586 | 18.8294 |
57 | 16.5645 | 18.4606 |
58 | 16.1666 | 18.0852 |
59 | 15.7657 | 17.7032 |
60 | 15.3624 | 17.3147 |
61 | 14.9574 | 16.9197 |
62 | 14.5515 | 16.5186 |
63 | 14.1455 | 16.1118 |
64 | 13.7400 | 15.6998 |
65 | 13.3360 | 15.2828 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.235 | 1.399 |
41 | 3.127 | 1.315 |
42 | 3.019 | 1.231 |
43 | 2.911 | 1.147 |
44 | 2.803 | 1.063 |
45 | 2.696 | 0.979 |
46 | 2.588 | 0.895 |
47 | 2.480 | 0.811 |
48 | 2.372 | 0.727 |
49 | 2.264 | 0.643 |
50 | 2.157 | 0.559 |
51 | 1.833 | 0.476 |
52 | 1.510 | 0.392 |
53 | 1.186 | 0.308 |
54 | 0.863 | 0.224 |
55 and over | 0.539 | 0.140 |
17 Valuation factors--5-year guarantee period--wage indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics).
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 18.8886 | 21.0840 |
56 | 18.4263 | 20.6431 |
57 | 17.9613 | 20.1966 |
58 | 17.4940 | 19.7445 |
59 | 17.0252 | 19.2868 |
60 | 16.5558 | 18.8237 |
61 | 16.0865 | 18.3554 |
62 | 15.6182 | 17.8823 |
63 | 15.1515 | 17.4048 |
64 | 14.6876 | 16.9236 |
65 | 14.2271 | 16.4390 |
Member's age at relevant date (in completed years) | Reversion valuation
factors | |
Male | Female | |
Up to 40 | 3.821 | 1.654 |
41 | 3.693 | 1.555 |
42 | 3.566 | 1.456 |
43 | 3.439 | 1.357 |
44 | 3.311 | 1.257 |
45 | 3.184 | 1.158 |
46 | 3.057 | 1.059 |
47 | 2.929 | 0.960 |
48 | 2.802 | 0.860 |
49 | 2.674 | 0.761 |
50 | 2.547 | 0.662 |
51 | 2.165 | 0.563 |
52 | 1.783 | 0.463 |
53 | 1.401 | 0.364 |
54 | 1.019 | 0.265 |
55 and over | 0.637 | 0.165 |
18 Valuation factors--5-year guarantee period--pension indexed at 3%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed at 3%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 16.7449 | 18.4563 |
56 | 16.3822 | 18.1231 |
57 | 16.0147 | 17.7831 |
58 | 15.6431 | 17.4362 |
59 | 15.2678 | 17.0824 |
60 | 14.8897 | 16.7217 |
61 | 14.5093 | 16.3543 |
62 | 14.1273 | 15.9804 |
63 | 13.7445 | 15.6004 |
64 | 13.3616 | 15.2146 |
65 | 12.9794 | 14.8234 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.015 | 1.303 |
41 | 2.914 | 1.225 |
42 | 2.814 | 1.147 |
43 | 2.713 | 1.068 |
44 | 2.613 | 0.990 |
45 | 2.512 | 0.912 |
46 | 2.412 | 0.834 |
47 | 2.311 | 0.756 |
48 | 2.211 | 0.677 |
49 | 2.110 | 0.599 |
50 | 2.010 | 0.521 |
51 | 1.708 | 0.443 |
52 | 1.407 | 0.365 |
53 | 1.105 | 0.287 |
54 | 0.804 | 0.208 |
55 and over | 0.502 | 0.130 |
19 Valuation factors--5-year guarantee period--pension indexed at 5%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 5-year guarantee period; and
(b) is indexed at 5%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 21.4599 | 24.2910 |
56 | 20.8675 | 23.7045 |
57 | 20.2756 | 23.1151 |
58 | 19.6850 | 22.5228 |
59 | 19.0964 | 21.9279 |
60 | 18.5109 | 21.3304 |
61 | 17.9294 | 20.7309 |
62 | 17.3527 | 20.1297 |
63 | 16.7816 | 19.5275 |
64 | 16.2172 | 18.9248 |
65 | 15.6603 | 18.3224 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 4.873 | 2.115 |
41 | 4.710 | 1.988 |
42 | 4.548 | 1.861 |
43 | 4.385 | 1.734 |
44 | 4.223 | 1.607 |
45 | 4.061 | 1.480 |
46 | 3.898 | 1.354 |
47 | 3.736 | 1.227 |
48 | 3.573 | 1.100 |
49 | 3.411 | 0.973 |
50 | 3.249 | 0.846 |
51 | 2.761 | 0.719 |
52 | 2.274 | 0.592 |
53 | 1.787 | 0.465 |
54 | 1.299 | 0.338 |
55 and over | 0.812 | 0.211 |
20 Valuation factors--10-year guarantee period--pension not indexed
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is not indexed.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 12.2909 | 13.0621 |
56 | 12.1271 | 12.9219 |
57 | 11.9595 | 12.7762 |
58 | 11.7882 | 12.6251 |
59 | 11.6138 | 12.4684 |
60 | 11.4366 | 12.3062 |
61 | 11.2571 | 12.1385 |
62 | 11.0757 | 11.9655 |
63 | 10.8928 | 11.7872 |
64 | 10.7090 | 11.6040 |
65 | 10.5246 | 11.4161 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 1.369 | 0.596 |
41 | 1.323 | 0.560 |
42 | 1.278 | 0.525 |
43 | 1.232 | 0.489 |
44 | 1.187 | 0.453 |
45 | 1.141 | 0.417 |
46 | 1.095 | 0.382 |
47 | 1.050 | 0.346 |
48 | 1.004 | 0.310 |
49 | 0.958 | 0.274 |
50 | 0.913 | 0.239 |
51 | 0.776 | 0.203 |
52 | 0.639 | 0.167 |
53 | 0.502 | 0.131 |
54 | 0.365 | 0.095 |
55 and over | 0.228 | 0.060 |
21 Valuation factors--10-year guarantee period--CPI indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed in accordance with the consumer price index.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.9998 |
17.4328 |
56 | 15.6993 | 17.1533 |
57 | 15.3960 | 16.8677 |
58 | 15.0903 | 16.5763 |
59 | 14.7830 | 16.2791 |
60 | 14.4749 | 15.9764 |
61 | 14.1666 | 15.6684 |
62 | 13.8589 | 15.3555 |
63 | 13.5525 | 15.0382 |
64 | 13.2481 | 14.7170 |
65 | 12.9464 | 14.3924 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.482 | 1.083 |
41 | 2.399 | 1.018 |
42 | 2.317 | 0.953 |
43 | 2.234 | 0.888 |
44 | 2.151 | 0.823 |
45 | 2.068 | 0.758 |
46 | 1.986 | 0.693 |
47 | 1.903 | 0.628 |
48 | 1.820 | 0.563 |
49 | 1.737 | 0.498 |
50 | 1.655 | 0.433 |
51 | 1.406 | 0.368 |
52 | 1.158 | 0.303 |
53 | 0.910 | 0.238 |
54 | 0.662 | 0.173 |
55 and over | 0.414 | 0.108 |
21A Valuation factors--10-year guarantee period--CPI indexed pension with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed in accordance with the consumer price index with a cap of 5%.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 15.8202 | 17.2175 |
56 | 15.5271 | 16.9456 |
57 | 15.2310 | 16.6678 |
58 | 14.9325 | 16.3841 |
59 | 14.6322 | 16.0946 |
60 | 14.3309 | 15.7994 |
61 | 14.0294 | 15.4989 |
62 | 13.7282 | 15.1935 |
63 | 13.4281 | 14.8835 |
64 | 13.1299 | 14.5696 |
65 | 12.8342 | 14.2522 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.422 | 1.057 |
41 | 2.342 | 0.993 |
42 | 2.261 | 0.930 |
43 | 2.180 | 0.866 |
44 | 2.099 | 0.803 |
45 | 2.019 | 0.740 |
46 | 1.938 | 0.676 |
47 | 1.857 | 0.613 |
48 | 1.776 | 0.549 |
49 | 1.696 | 0.486 |
50 | 1.615 | 0.423 |
51 | 1.373 | 0.359 |
52 | 1.130 | 0.296 |
53 | 0.888 | 0.232 |
54 | 0.646 | 0.169 |
55 and over | 0.404 | 0.106 |
22 Valuation factors--10-year guarantee period--CPI indexed pension plus 1%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1%.
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 17.9774 | 19.8270 |
56 | 17.5915 | 19.4555 |
57 |
17.2041 | 19.0789 |
58 | 16.8162 | 18.6971 |
59 | 16.4284 | 18.3106 |
60 | 16.0417 | 17.9195 |
61 | 15.6570 | 17.5244 |
62 | 15.2751 | 17.1256 |
63 | 14.8967 | 16.7239 |
64 | 14.5228 | 16.3199 |
65 | 14.1540 | 15.9144 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.175 | 1.387 |
41 | 3.069 | 1.303 |
42 | 2.963 | 1.220 |
43 | 2.857 | 1.137 |
44 | 2.752 | 1.054 |
45 | 2.646 | 0.971 |
46 | 2.540 | 0.887 |
47 | 2.434 | 0.804 |
48 | 2.328 | 0.721 |
49 | 2.222 | 0.638 |
50 | 2.117 | 0.555 |
51 | 1.799 | 0.471 |
52 | 1.482 | 0.388 |
53 | 1.164 | 0.305 |
54 | 0.847 | 0.222 |
55 and over | 0.529 | 0.139 |
23 Valuation factors--10-year guarantee period--CPI indexed pension plus 1% with 5% cap
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed in accordance with the consumer price index plus 1% with a cap of 5%.
Member's retirement age | Pension valuation
factors | |
Male | Female | |
55 | 17.5537 | 19.3107 |
56 | 17.1868 | 18.9599 |
57 | 16.8181 | 18.6037 |
58 | 16.4483 | 18.2421 |
59 | 16.0783 | 17.8755 |
60 | 15.7088 | 17.5040 |
61 | 15.3409 | 17.1282 |
62 | 14.9752 | 16.7484 |
63 | 14.6125 | 16.3653 |
64 | 14.2537 | 15.9795 |
65 | 13.8995 | 15.5917 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 3.021 | 1.319 |
41 | 2.920 | 1.240 |
42 | 2.820 | 1.161 |
43 | 2.719 | 1.082 |
44 | 2.618 | 1.002 |
45 | 2.518 | 0.923 |
46 | 2.417 | 0.844 |
47 | 2.316 | 0.765 |
48 | 2.215 | 0.686 |
49 | 2.115 | 0.607 |
50 | 2.014 | 0.528 |
51 | 1.712 | 0.448 |
52 | 1.410 | 0.369 |
53 | 1.108 | 0.290 |
54 | 0.806 | 0.211 |
55 and over | 0.504 | 0.132 |
24 Valuation factors--10-year guarantee period--wage indexed pension
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics).
Member's retirement age | Pension valuation factors | |
Male | Female | |
55 | 19.1050 | 21.2096 |
56 | 18.6669 | 20.7807 |
57 | 18.2286 | 20.3474 |
58 | 17.7909 | 19.9099 |
59 | 17.3547 | 19.4684 |
60 | 16.9210 | 19.0233 |
61 | 16.4907 | 18.5752 |
62 | 16.0647 | 18.1245 |
63 | 15.6439 | 17.6720 |
64 | 15.2290 | 17.2185 |
65 | 14.8210 | 16.7647 |
Member's age at relevant date (in completed years) | Reversion valuation
factors | |
Male | Female | |
Up to 40 | 3.597 | 1.572 |
41 | 3.477 | 1.478 |
42 | 3.357 | 1.383 |
43 | 3.237 | 1.289 |
44 | 3.118 | 1.195 |
45 | 2.998 | 1.100 |
46 | 2.878 | 1.006 |
47 | 2.758 | 0.912 |
48 | 2.638 | 0.817 |
49 | 2.518 | 0.723 |
50 | 2.398 | 0.629 |
51 | 2.038 | 0.535 |
52 | 1.679 | 0.440 |
53 | 1.319 | 0.346 |
54 | 0.959 | 0.252 |
55 and over | 0.600 | 0.157 |
25 Valuation factors--10-year guarantee period--pension indexed at 3%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed at 3%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 16.9455 | 18.5728 |
56 | 16.6052 | 18.2507 |
57 | 16.2626 | 17.9229 |
58 | 15.9184 | 17.5895 |
59 | 15.5734 | 17.2508 |
60 | 15.2284 | 16.9068 |
61 | 14.8841 | 16.5581 |
62 | 14.5414 | 16.2050 |
63 | 14.2010 | 15.8481 |
64 | 13.8637 | 15.4880 |
65 | 13.5303 | 15.1254 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 2.805 | 1.224 |
41 | 2.712 | 1.151 |
42 | 2.618 | 1.077 |
43 | 2.525 | 1.004 |
44 | 2.431 | 0.931 |
45 | 2.338 | 0.857 |
46 | 2.244 | 0.784 |
47 | 2.151 | 0.710 |
48 | 2.057 | 0.637 |
49 | 1.964 | 0.563 |
50 | 1.870 | 0.490 |
51 | 1.590 | 0.416 |
52 | 1.309 | 0.343 |
53 | 1.029 | 0.269 |
54 | 0.748 | 0.196 |
55 and over | 0.468 | 0.122 |
26 Valuation factors--10-year guarantee period--pension indexed at 5%
The pension valuation factors and reversion valuation factors set out in this clause apply if the pension:
(a) has a 10-year guarantee period; and
(b) is indexed at 5%.
Member's retirement age |
Pension valuation factors | |
Male | Female | |
55 | 21.6932 | 24.4263 |
56 | 21.1268 | 23.8528 |
57 | 20.5638 | 23.2776 |
58 | 20.0050 | 22.7011 |
59 | 19.4516 | 22.1236 |
60 | 18.9046 | 21.5456 |
61 | 18.3651 | 20.9678 |
62 | 17.8340 | 20.3908 |
63 | 17.3122 | 19.8154 |
64 | 16.8007 | 19.2427 |
65 | 16.3004 | 18.6734 |
Member's age at relevant date (in completed years) | Reversion valuation factors | |
Male | Female | |
Up to 40 | 4.635 | 2.029 |
41 | 4.481 | 1.907 |
42 | 4.326 | 1.785 |
43 | 4.172 | 1.664 |
44 | 4.017 | 1.542 |
45 | 3.863 | 1.420 |
46 | 3.708 | 1.298 |
47 | 3.554 | 1.177 |
48 | 3.399 | 1.055 |
49 | 3.245 | 0.933 |
50 | 3.090 | 0.812 |
51 | 2.627 | 0.690 |
52 | 2.163 | 0.568 |
53 | 1.700 | 0.446 |
54 | 1.236 | 0.325 |
55 and over | 0.773 | 0.203 |
Part 4 -- Interest relating to current employment--benefit payable as combination of lump sum and pension
28 Method--no restriction on combination of lump sum and pension that may be taken
(1) This clause applies if there is no provision in the eligible superannuation plan in which the interest is held restricting the proportion of the interest that may be taken as a lump sum or as a pension.
Note: The method is based on the assumption that 50% of the interest will be taken as a lump sum and 50% of the interest will be taken as a pension.
(2) The method is:
where:
"PV ls " is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 2 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 3 of this Schedule.
29 Method--restriction on proportion of pension that may be commuted to lump sum
(1) This clause applies if:
(a) the benefit in respect of the interest is payable as a pension; and
(b) the governing rules of the eligible superannuation plan in which the interest is held restrict the proportion of the pension that may be commuted to a lump sum.
(2) The method is:
where:
Max ls% is:
(a) the maximum possible amount of pension that may be commuted to a lump sum, expressed as a percentage of the amount of the pension that would be payable if the whole benefit were to be taken as a pension; or
(b) if the percentage calculated under paragraph (a) is greater than 50%--50%.
"PV ls " is the present value of the lump sum that would apply if the whole benefit could, and were to, be taken as a lump sum, calculated using the method set out in Part 2 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 3 of this Schedule.
29A Method--restriction on lump sum amount that may be converted to pension
(1) This clause applies if:
(a) the benefit in respect of the interest is payable as a lump sum; and
(b) the governing rules of the eligible superannuation plan in which the interest is held restrict the amount of the lump sum that may be converted to a pension.
(2) The method is:
where:
Max p% is:
(a) the maximum possible amount of lump sum that may be converted to a pension expressed as a percentage of the amount of the lump sum that would be payable if the whole benefit were to be taken as a lump sum; or
(b) if the percentage calculated under paragraph (a) is greater than 50%--50%.
"PV ls " is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 2 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit could, and were to, be taken as a pension, calculated using the method set out in Part 3 of this Schedule.
30 Conversion of accrued benefit multiple
(1) For the purpose of calculating the value of PV ls under subclause 28(2), 29(2) or 29A(2) of this Schedule, if the accrued benefit multiple provided by the trustee under section 90XZB or 90YZR of the Act is expressed as a pension multiple, the multiple must be converted to a lump sum multiple using the commutation factor provided by the trustee under that section.
(2) For the purpose of calculating the value of PV p under subclause 28(2), 29(2) or 29A(2) of this Schedule, if the accrued benefit multiple provided by the trustee under section 90XZB or 90YZR of the Act is expressed as a lump sum multiple, the multiple must be converted to a pension multiple using the conversion factor provided by the trustee under that section.
Part 5 -- Interest relating to former employment--benefit payable only as lump sum
31 Method--lump sum comprising different components
(1) This clause applies if the lump sum payable in respect of the interest comprises a number of components, the value of which will increase by different rates over the minimum deferral period.
(2) The gross value of the interest is the sum of the gross value of each component comprising the lump sum, calculated as follows:
where:
DB is the nominal value of the component of the lump sum at the relevant date.
D y+m is the discount valuation factor calculated in accordance with subclause (3).
(3) For subclause (2), D y+m at the relevant date is:
where:
D y is the discount valuation factor specified in clause 32 in respect of the lump sum at the relevant date on the basis of the minimum deferral period (in complete years) applying to the lump sum at that date.
"m" is the number of complete months of the minimum deferral period applicable to the lump sum at the relevant date that are not included in the remaining complete years of that period at that date.
D y+1 is the discount valuation factor specified in clause 32 that would apply in respect of the lump sum at the relevant date if the minimum deferral period (in complete years) applying to the lump sum at that date were one year more than the minimum deferral period applying to the lump sum at that date.
(4) For the purpose of calculating the discount valuation factor under subclause (3):
minimum deferral period , in relation to the benefit payable to the member spouse in respect of the interest, means the period until the earliest date at which the benefit may be paid (other than for death or disability).
"nominal value" , of a component of a lump sum payable in respect of a superannuation interest at a particular date, means the amount of the component payable (excluding any superannuation contributions surcharge payable in respect of the interest) if the member spouse were able to take, and did take, the benefit in respect of the interest at that date.
(1) For subclause 31(3), this clause sets out the discount valuation factors.
(2) Column 2 of the following table sets out the applicable factor for the annual amount of a lump sum that, at the relevant date, is not indexed in respect of the minimum deferral period.
(3) Column 3 of the following table sets out the applicable factor for the annual amount of a lump sum that, at the relevant date, is indexed in respect of the minimum deferral period in accordance with the consumer price index.
(4) Column 4 of the following table sets out the applicable factor for the annual amount of a lump sum that, at the relevant date, is indexed in respect of the minimum deferral period in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics) or in accordance with any change in the salary payable for the employment in which the member was engaged immediately before he or she ceased employment.
(5) If the annual amount of the lump sum at the relevant date is indexed in respect of the minimum deferral period in accordance with a fund crediting rate, the factor is 1.
Minimum deferral period for lump sum (in complete years) | Discount valuation factors | ||
Lump sum not indexed |
Lump sum indexed in line with CPI | Lump sum indexed in line with general wage index or salary | |
0 | 1.000 | 1.000 | 1.000 |
1 | 0.939 | 0.963 | 0.977 |
2 | 0.883 | 0.927 | 0.954 |
3 | 0.831 | 0.894 | 0.932 |
4 | 0.782 | 0.861 | 0.911 |
5 | 0.737 | 0.830 | 0.891 |
6 | 0.694 | 0.801 | 0.871 |
7 | 0.654 | 0.772 | 0.852 |
8 | 0.617 | 0.745 | 0.833 |
9 | 0.582 | 0.719 | 0.814 |
10 | 0.549 | 0.693 | 0.796 |
11 | 0.518 | 0.669 | 0.779 |
12 | 0.488 | 0.646 | 0.762 |
13 | 0.461 | 0.623 | 0.745 |
14 | 0.435 | 0.601 | 0.728 |
15 | 0.410 | 0.580 | 0.712 |
16 | 0.387 | 0.559 | 0.696 |
17 | 0.365 | 0.540 | 0.681 |
18 | 0.345 | 0.521 | 0.666 |
19 | 0.325 | 0.502 | 0.651 |
20 | 0.307 | 0.485 | 0.637 |
21 | 0.290 | 0.467 | 0.622 |
22 | 0.273 | 0.451 | 0.609 |
23 | 0.258 | 0.435 | 0.595 |
24 | 0.243 | 0.420 | 0.582 |
25 | 0.230 | 0.405 | 0.569 |
26 | 0.217 | 0.391 | 0.556 |
27 | 0.205 | 0.377 | 0.544 |
28 | 0.193 | 0.363 | 0.532 |
29 | 0.183 | 0.351 | 0.520 |
30 | 0.172 | 0.338 | 0.508 |
31 | 0.163 | 0.326 | 0.497 |
32 | 0.154 | 0.315 | 0.486 |
33 | 0.145 | 0.303 | 0.475 |
34 | 0.137 | 0.293 | 0.464 |
35 | 0.129 | 0.282 | 0.454 |
36 | 0.122 | 0.272 | 0.443 |
37 | 0.115 | 0.263 | 0.433 |
38 | 0.109 | 0.253 | 0.424 |
39 | 0.103 | 0.244 | 0.414 |
40 | 0.097 | 0.236 | 0.405 |
33 Method--lump sum (other than lump sum comprising different components)
(1) This clause applies if clause 31 of this Schedule does not apply.
(2) The method is:
where:
DB is the nominal value of the lump sum at the relevant date.
D y+m is the discount valuation factor calculated in accordance with subclauses 31(2), (3) and (4) of this Part.
Part 6 -- Interest relating to former employment--benefit payable only as pension
34 Method--pension payable periodically
(1) This clause applies if the amount of the pension that would be payable in respect of the interest is, at the time when payment of the pension commences, a fixed amount or an amount determined by increasing a fixed amount in accordance with an index over the minimum deferral period.
(2) The method is:
where:
DBP is the annual amount of pension at the relevant date if the pension were to commence on completion of the minimum deferral period.
"P da " is the pension valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension, its indexation rate (if any), guarantee period (if any) and the member spouse's age at the end of the minimum deferral period.
"R sa " is the reversion valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension and the member spouse's age in completed years at the relevant date.
"r" is the proportion of pension that a non-member spouse would receive, as the reversionary beneficiary of the member spouse, on the death of the member spouse, as provided by the trustee under section 90XZB or 90YZR of the Act.
D y+m is the discount valuation factor calculated in accordance with subclause (3).
(3) For subclause (2), the discount valuation factor ( D y+m ) at the relevant date is:
where:
D y is the discount valuation factor mentioned in clause 35 that applies to the pension at the relevant date and the minimum deferral period in complete years at that date.
"m" is the number of complete months of the minimum deferral period applicable to the pension at the relevant date that are not included in the remaining complete years of that period at that date.
D y+1 is the discount valuation factor specified in clause 35 that would apply in respect of the pension at the relevant date if the minimum deferral period (in complete years) applying to the pension at that date were one year more than the minimum deferral period applying to the pension at that date.
(4) In this clause and clause 35:
minimum deferral period in relation to the benefit payable to the member spouse in respect of the interest, means the period until the earliest date at which the benefit may be paid (other than for death or disability).
(1) For subclause 34(3), this clause sets out the discount valuation factors.
(2) Column 2 of the following table sets out the applicable factor for the annual amount of a pension that, at the relevant date, is not indexed in respect of the minimum deferral period.
(3) Column 3 of the following table sets out the applicable factor for the annual amount of a pension that, at the relevant date, is indexed in respect of the minimum deferral period in accordance with the consumer price index.
(4) Column 4 of the following table sets out the applicable factor for the annual amount of a pension that, at the relevant date, is indexed in respect of the minimum deferral period in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics) or in accordance with any change in the salary payable for the employment in which the member was engaged immediately before he or she ceased employment.
(5) If the annual amount of the pension at the relevant date is indexed in respect of the minimum deferral period in accordance with a fund crediting rate, the factor is 1.
Minimum deferral period for pension (in complete years) | Discount valuation factors | ||
Pension not indexed |
Pension indexed in line with CPI | Pension indexed in line with wage index or salary | |
0 | 1.000 | 1.000 | 1.000 |
1 | 0.939 | 0.963 | 0.977 |
2 | 0.883 | 0.927 | 0.954 |
3 | 0.831 | 0.894 | 0.932 |
4 | 0.782 | 0.861 | 0.911 |
5 | 0.737 | 0.830 | 0.891 |
6 | 0.694 | 0.801 | 0.871 |
7 | 0.654 | 0.772 | 0.852 |
8 | 0.617 | 0.745 | 0.833 |
9 | 0.582 | 0.719 | 0.814 |
10 | 0.549 | 0.693 | 0.796 |
11 | 0.518 | 0.669 | 0.779 |
12 | 0.488 | 0.646 | 0.762 |
13 | 0.461 | 0.623 | 0.745 |
14 | 0.435 | 0.601 | 0.728 |
15 | 0.410 | 0.580 | 0.712 |
16 | 0.387 | 0.559 | 0.696 |
17 | 0.365 | 0.540 | 0.681 |
18 | 0.345 | 0.521 | 0.666 |
19 | 0.325 | 0.502 | 0.651 |
20 | 0.307 | 0.485 | 0.637 |
21 | 0.290 | 0.467 | 0.622 |
22 | 0.273 | 0.451 | 0.609 |
23 | 0.258 | 0.435 | 0.595 |
24 | 0.243 | 0.420 | 0.582 |
25 | 0.230 | 0.405 | 0.569 |
26 | 0.217 | 0.391 | 0.556 |
27 | 0.205 | 0.377 | 0.544 |
28 | 0.193 | 0.363 | 0.532 |
29 | 0.183 | 0.351 | 0.520 |
30 | 0.172 | 0.338 | 0.508 |
31 | 0.163 | 0.326 | 0.497 |
32 | 0.154 | 0.315 | 0.486 |
33 | 0.145 | 0.303 | 0.475 |
34 | 0.137 | 0.293 | 0.464 |
35 | 0.129 | 0.282 | 0.454 |
36 | 0.122 | 0.272 | 0.443 |
37 | 0.115 | 0.263 | 0.433 |
38 | 0.109 | 0.253 | 0.424 |
39 | 0.103 | 0.244 | 0.414 |
40 | 0.097 | 0.236 | 0.405 |
36 Method--conversion of lump sum to pension
(1) This clause applies if the amount of the pension payable in respect of the interest is to be determined by reference to the conversion of a lump sum amount when payment of the pension commences.
(2) The method is:
where:
DB is the nominal value of the lump sum at the relevant date.
"C da " is the factor that would be used to convert the lump sum to a pension at the end of the minimum deferral period.
"P da " is the pension valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension, its indexation rate (if any), guarantee period (if any) and the member spouse's age at the end of the minimum deferral period.
"R sa " is the reversion valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension and the member spouse's age in completed years at the relevant date.
"r" is the proportion of the pension that a non-member spouse would receive as the reversionary beneficiary of the member spouse on the death of the member spouse, as provided by the trustee under section 90XZB or 90YZR of the Act.
D y+m is the discount valuation factor calculated in accordance with subclause 31(3) of this Schedule.
(3) For the purpose of calculating the discount valuation factor under subclause (2):
minimum deferral period has the meaning given by subclause 31(4) of this Schedule.
"nominal value" has the meaning given by subclause 31(4) of this Schedule.
Part 7 -- Interest relating to former employment--benefit payable as combination of lump sum and pension
37 Method--no restriction on combination of lump sum and pension that may be taken
(1) This clause applies if there is no provision in the governing rules of the eligible superannuation plan in which the interest is held restricting the proportion of the interest that may be taken as a lump sum or as a pension.
(2) The method is:
where:
PV ls is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 5 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 6 of this Schedule.
38 Method--restriction on proportion of pension that may be commuted to lump sum
(1) This clause applies if:
(a) the benefit in respect of the interest is payable as a pension; and
(b) the governing rules of the eligible superannuation plan in which the interest is held restrict the proportion of the pension that may be commuted to a lump sum.
(2) The method is:
where:
Max ls% is:
(a) the maximum amount of pension that, at the end of the minimum deferral period, may be commuted to a lump sum, expressed as a percentage of the amount of the pension that would be payable if the whole benefit were to be taken as a pension; or
(b) if the percentage calculated under paragraph (a) is greater than 50%--50%.
PV ls is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 5 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 6 of this Schedule.
(3) In this clause:
minimum deferral period , has the meaning given by subclause 31(4) of this Schedule.
39 Method--restriction on lump sum amount that may be taken as pension
(1) This clause applies if:
(a) the benefit in respect of the interest is payable as a lump sum; and
(b) the governing rules of the eligible superannuation plan in which the interest is held restrict the amount of the lump sum that may be taken as a pension.
(2) The method is:
where:
Max p% is:
(a) the maximum possible amount of lump sum that, at the end of the minimum deferral period, may be converted to a pension expressed as a percentage of the lump sum that would be payable if the whole benefit were to be taken as a lump sum; or
(b) if the percentage calculated under paragraph (a) is greater than 50%--50%.
PV ls is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 5 of this Schedule.
"PV p " is the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 6 of this Schedule.
(3) In this clause:
minimum deferral period has the meaning given by subclause 31(4).