Commonwealth Consolidated Regulations

OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS - REG 4D

      (1A)   In this regulation, annual value , in relation to a pension, means the amount that is worked out by multiplying the greatest number of payments of the pension that could be made in respect of the period of 12 months beginning on the commencement day of that pension by the amount of the first regular payment of the pension.

         (1)   Subject to subregulations (2) and (3), the capital value of a superannuation pension that has commenced to be paid, including a residual pension payable on partial commutation of another superannuation pension, is the amount worked out using the formula:

where:

"AV" means the annual value of the pension;

"PVF" means the pension valuation factor applicable to the pension under Schedule 3; and

"UPP" means the undeducted purchase price of the pension; and

"RCV" means the present value of the residual capital value, if any, of the pension, calculated in accordance with a method determined in writing by the Commissioner.

         (2)   The capital value of:

                (a)    a superannuation pension referred to in subparagraph (b) (ii) of the definition of superannuation pension in subsection 15E (1) of the Act; and

               (b)    a superannuation pension that is not payable for life;

is the amount calculated in accordance with a method determined by the Commissioner in writing in relation to the pension.

         (3)   The capital value of a superannuation pension that is payable to a person as a result of an arrangement under which that person:

                (a)    ceases to be entitled to a superannuation pension that has commenced to be paid to the person from a superannuation fund; and

               (b)    becomes entitled to be paid a superannuation pension from another superannuation fund;

is the amount worked out using the formula:

where:

"Y" means the amount by which the annual value of the pension referred to in paragraph (b) exceeds the annual value of the pension referred to in paragraph (a).

"U" means the amount by which the UPP of the pension referred to in paragraph (b) exceeds the UPP of the pension referred to in paragraph (a).

"R" means the amount by which the RCV of the pension referred to in paragraph (b) exceeds the RCV of the pension referred to in paragraph (a).

         (4)   In subregulation (3), PVF , UPP and RCV have the same respective meanings as in subregulation (1).