• Specific Year
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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 interest

(regulation 29)

Part 1 -- Preliminary

1   Application of Schedule 2

                   This 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.

2   Method

             (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

3   Method

             (1)  The method is:

                   Start formula A times f start subscript y plus m end subscript end formula

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:

                   Start formula start fraction open bracket f subscript y times open bracket 12 minus m close bracket close bracket plus open bracket f start subscript y plus 1 end subscript times m close bracket over 12 end fraction end formula

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.

4   Lump sum valuation factors

                   This clause sets out the lump sum valuation factors.

 

Remaining term until retirement
(in complete years)

Lump sum valuation factors
(all members)

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

5   Method

             (1)  The method is:

                   Start formula VN times f start subscript y plus m end subscript end formula

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:

                   Start formula B times open bracket P subscript ra plus open bracket R subscript sa times r close bracket close bracket end formula

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
No guarantee period--pension not indexed

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
No guarantee period--pension not indexed

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
No guarantee period--CPI indexed pension

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
No guarantee period--CPI indexed pension

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
No guarantee period
CPI indexed pension with 5% cap

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
No guarantee period
CPI indexed pension with 5% cap

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%.

 



Member's retirement age

Pension valuation factors
No guarantee period--CPI indexed pension plus 1%

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
No guarantee period--CPI indexed pension plus 1%

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
No guarantee period
CPI indexed pension plus 1% with 5% cap

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
No guarantee period
CPI indexed pension plus 1% with 5% cap

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
No guarantee period--wage indexed pension

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
No guarantee period--wage indexed pension

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
No guarantee period--pension indexed at 3%

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
No guarantee period--pension indexed at 3%

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
No guarantee period--pension indexed at 5%

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
No guarantee period--pension indexed at 5%

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
5-year guarantee period--pension not indexed

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
5-year guarantee period--pension not indexed

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
5-year guarantee period--CPI indexed pension

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
5-year guarantee period--CPI indexed pension

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
5-year guarantee period
CPI indexed pension with 5% cap

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
(in completed years)

Reversion valuation factors
5-year guarantee period
CPI indexed pension with 5% cap

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
5-year guarantee period
CPI indexed pension plus 1%

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
5-year guarantee period
CPI indexed pension plus 1%

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
5-year guarantee period
CPI indexed pension plus 1% with 5% cap

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
5-year guarantee period
CPI indexed pension plus 1% with 5% cap

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
5-year guarantee period--wage indexed pension

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
5-year guarantee period--wage indexed pension

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
5-year guarantee period--pension indexed at 3%

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
5-year guarantee period--pension indexed at 3%

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
5-year guarantee period--pension indexed at 5%

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
5-year guarantee period--pension indexed at 5%

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
10-year guarantee period--pension not indexed

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
10-year guarantee period--pension not indexed

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
10-year guarantee period--CPI indexed pension

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
10-year guarantee period--CPI indexed pension

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
10-year guarantee period
CPI indexed pension with 5% cap

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
10-year guarantee period
CPI indexed pension with 5% cap

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
10-year guarantee period
CPI indexed pension plus 1%

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
10-year guarantee period
CPI indexed pension plus 1%

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
10-year guarantee period
CPI indexed pension plus 1% with 5% cap

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
10-year guarantee period
CPI indexed pension plus 1% with 5% cap

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
10-year guarantee period--wage indexed pension

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
10-year guarantee period--wage indexed pension

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
10-year guarantee period--pension indexed at 3%

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
10-year guarantee period--pension indexed at 3%

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
10-year guarantee period--pension indexed at 5%

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
10-year guarantee period--pension indexed at 5%

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:

                   Start formula start fraction PV subscript ls plus PV subscript p over 2 end fraction end formula

                   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:

                   Start formula open bracket Max subscript ls% times PV subscript ls close bracket plus open bracket open bracket 1 minus Max subscript ls% close bracket times PV subscript p close bracket end formula

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:

                   Start formula open bracket open bracket 1 minus Max subscript p% close bracket times PV subscript ls close bracket plus open bracket Max subscript p% times PV subscript p close bracket end formula

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:

Start formula DB times D start subscript y plus m end subscript end formula

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:

                   Start formula start fraction open bracket D subscript y times open bracket 12 minus m close bracket close bracket plus open bracket D start subscript y plus 1 end subscript times m close bracket over 12 end fraction end formula

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.

32   Discount valuation factors

             (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:

                   Start formula DB times D start subscript y plus m end subscript end formula

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:

                   Start formula DBP times open bracket P subscript da plus open bracket R subscript sa times r close bracket close bracket times D start subscript y plus m end subscript end formula

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:

                   Start formula start fraction open bracket D subscript y times open bracket 12 minus m close bracket close bracket times open bracket D start subscript y plus 1 end subscript times m close bracket over 12 end fraction end formula

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).

35   Discount valuation factors

             (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:

                   Start formula start fraction DB over C subscript da end fraction times open bracket P subscript da plus open bracket R subscript sa times r close bracket close bracket times D start subscript y plus m end subscript end formula

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:

                   Start formula start fraction PV subscript ls plus PV subscript p over 2 end fraction end formula

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:

                   Start formula open bracket Max subscript ls% times PV subscript ls close bracket plus open bracket open bracket 1 minus Max subscript ls% close bracket times PV subscript p close bracket end formula

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:

                   Start formula open bracket open bracket 1 minus Max subscript p% close bracket times PV subscript ls close bracket plus open bracket Max subscript p% plus PV subscript p close bracket end formula

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).