SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - SCHEDULE 6 Payments for market linked income streams

SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - SCHEDULE 6

(subregulations   1.05(10) and 1.06(8))

1.     Subject to the following clauses, the total amount of the payments mentioned in paragraph   1.05(10)(b) or 1.06(8)(b) is determined using the formula:

where:

"AB" means the amount of the market linked annuity account balance, or market linked pension account balance, as the case requires:

  (a)   on 1   July in the financial year in which the payment is made; or

  (b)   if that year is the year in which the market linked annuity or pension commences--on the commencement day.

"PF" means the payment factor set out in Column 3 in the Table in relation to the item in the Table that represents the term of the market linked annuity or pension remaining, expressed in whole years in accordance with clause   5, on:

  (a)   1   July in the financial year in which the payment is made; or

  (b)   if that is the year in which the annuity or pension commences--the commencement day.

2.     Payment of the account balance is sufficient to meet the payment for the financial year if, during the year, the account balance becomes less than the lesser of the following amounts:

  (a)   the amount determined under clause   1;

  (b)   the balance of the amount determined under clause   1 that remains to be paid for the year.

3.     If, in the final year of the annuity or pension, after payment of the amount determined under clause   1, there is a residual balance in the account--payment of the account balance must be made within 28 days after:

  (a)   the end of the term of the annuity or pension; or

  (b)   if a period is chosen under clause   7--the end of that period.

4.     An amount determined under the formula in clause   1 is rounded to the nearest 10 whole dollars.

5.     For clause   1, the remaining term of a market linked annuity or pension is rounded as follows:

  (a)   if the commencement day of the market linked annuity or pension is on or after 1   January in a financial year--rounded up to the nearest whole year;

  (b)   if the commencement day of the market linked annuity or pension is on or before 31   December in a financial year--rounded down to the nearest whole year.

6.     If the commencement day of the pension or annuity is a day other than 1   July--the appropriate factor set out in Column 3 of the Table must be applied proportionally to the number of days in the financial year that include and follow the commencement day in that financial year.

7.     If, on 1   July in a financial year ( current year ):

  (a)   the payment factor that applies to an account balance for a market linked annuity or pension is 1.00; and

  (b)   the payment factor that applied on 1   July in the previous financial year was not 1.00;

payments made in respect of the current year and the period after (if any) are taken to be determined in accordance with clause   1 if they comply with the following conditions:

  (c)   payment of the account balance over one of the following periods:

  (i)   if the remaining term of the annuity or pension is greater than 12 months--that period;

  (ii)   12 months;

  (d)   if payments are made in accordance with paragraph   (c)--the provider has no obligation to make any other payment that, but for this clause, would have been determined on 1   July in the subsequent financial year.

8.     An amount is taken to have been determined in accordance with clause   1 of this Schedule if the amount is:

  (a)   not less than the amount determined in accordance with clause   1 of this Schedule, less 10 per cent of that amount; and

  (b)   not greater than the amount determined in accordance with clause   1 of this Schedule, plus 10 per cent of that amount.

9.     Clause   8 does not apply if clause   10 or 11 applies.

10.     For the financial years commencing on 1   July 2008, 1   July 2009, 1   July 2010, 1   July 2019, 1   July 2020, 1   July 2021 and 1   July 2022, an amount is taken to have been determined in accordance with clause   1 if the amount is:

  (a)   not less than 45% of the amount determined in accordance with clause   1; and

  (b)   not greater than 110% of the amount determined in accordance with clause   1.

11.     For the financial years commencing on 1   July 2011 and 1   July 2012, an amount is taken to have been determined in accordance with clause   1 if the amount is:

  (a)   not less than 67.5% of the amount determined in accordance with clause   1; and

  (b)   not greater than 110% of the amount determined in accordance with clause   1.

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