Retirement Savings Accounts Regulations 1997

SCHEDULE 1  

(subregulation 1.07(2) )

PAYMENT LIMITS FOR PENSIONS WITH A COMMENCEMENT DAY BEFORE 1 JANUARY 2006

SECTION 7.  

7.    
For the purposes of clause 5 , a reversionary beneficiary is a child beneficiary until:

(a)    his or her 16th birthday; or

(b)    if the person mentioned in paragraph (a) is a full-time student at age 16 - the end of his or her full-time studies or his or her 25th birthday (whichever occurs sooner).

TABLE 1
FACTORS FOR ALLOCATED PENSIONS - GENERAL

TABLE 1
FACTORS FOR ALLOCATED PENSIONS - GENERAL

Column 1	Column 2	Column 3	Column 4
Item no.	Age of Beneficiary	Maximum Pension Valuation Factor	Minimum Pension Valuation Factor
1	20 or less	10	28.6
2	21	10	28.5
3	22	10	28.3
4	23	10	28.1
5	24	10	28.0
6	25	10	27.8
7	26	10	27.6
8	27	10	27.5
9	28	10	27.3
10	29	10	27.1
11	30	10	26.9
12	31	10	26.7
13	32	10	26.5
14	33	10	26.3
15	34	10	26.0
16	35	10	25.8
17	36	10	25.6
18	37	10	25.3
19	38	10	25.1
20	39	10	24.8
21	40	10	24.6
22	41	10	24.3
23	42	10	24.0
24	43	10	23.7
25	44	10	23.4
26	45	10	23.1
27	46	10	22.8
28	47	10	22.5
29	48	10	22.2
30	49	10	21.9
31	50	9.9	21.5
32	51	9.9	21.2
33	52	9.8	20.9
34	53	9.7	20.5
35	54	9.7	20.1
36	55	9.6	19.8
37	56	9.5	19.4
38	57	9.4	19.0
39	58	9.3	18.6
40	59	9.1	18.2
41	60	9.0	17.8
42	61	8.9	17.4
43	62	8.7	17.0
44	63	8.5	16.6
45	64	8.3	16.2
46	65	8.1	15.7
47	66	7.9	15.3
48	67	7.6	14.9
49	68	7.3	14.4
50	69	7.0	14.0
51	70	6.6	13.5
52	71	6.2	13.1
53	72	5.8	12.6
54	73	5.4	12.2
55	74	4.8	11.7
56	75	4.3	11.3
57	76	3.7	10.8
58	77	3.0	10.4
59	78	2.2	10.0
60	79	1.4	9.5
61	80	1	9.1
62	81	1	8.7
63	82	1	8.3
64	83	1	7.9
65	84	1	7.5
66	85	1	7.1
67	86	1	6.8
68	87	1	6.4
69	88	1	6.1
70	89	1	5.8
71	90	1	5.5
72	91	1	5.3
73	92	1	5.0
74	93	1	4.8
75	94	1	4.6
76	95	1	4.4
77	96	1	4.2
78	97	1	4.0
79	98	1	3.8
80	99	1	3.7
81	100 or more	1	3.5

EXAMPLE:
Iva Fortune, who turns 60 on 5 September 1997, invests $100,000 in an RSA on 1 October 1997. The date of the first payment to Ms Fortune is 1 January 1998.
Assume that the interest applied to the RSA is 7%.
1997/98: The maximum and minimum payments for 1997/98 are based on:
	(a) the RSA balance on the day of purchase; and
	(b) the beneficiary ' s age of 60 on the day of purchase:

		$100,000 9.0	×	273 365	=       $8,310.50	(maximum limit,       rounded to $8,310)
		$100,000 17.8	×	273 365	=       $4,201.93	(maximum limit,       rounded to $4,200)
Assume that total payments to Ms Fortune at 30 June 1998 are $6,000.
1998/99: The maximum and minimum payments for the year 1998/99 are based on:
	(a) the RSA balance on 1 July 1998 which is $99,145 (residue $94,000 + interest of $5,145); and
	(b) the beneficiary ' s age of 60 on 1 July 1998:

	$99,145 9.0	=   $11,016.11	(maximum limit, rounded to $11,020)
	$99,145 17.8	=   $5,569.94	(minimum limit, rounded to $5,570)

TABLE 2
FACTORS FOR ALLOCATED PENSIONS - CHILD
BENEFICIARY (REVERSION)

TABLE 2
FACTORS FOR ALLOCATED PENSIONS - CHILD
BENEFICIARY (REVERSION)

Column 1	Column 2	Column 3	Column 4
Item no.	Age of Beneficiary	Maximum Pension Valuation Factor	Minimum Pension Valuation Factor
1	0	8.3	17.4
2	1	8.1	16.9
3	2	7.9	16.4
4	3	7.6	15.9
5	4	7.3	15.4
6	5	7.0	14.8
7	6	6.6	14.3
8	7	6.2	13.7
9	8	5.8	13.1
10	9	5.4	12.4
11	10	4.8	11.8
12	11	4.3	11.1
13	12	3.7	10.5
14	13	3.0	9.7
15	14	2.2	9.0
16	15	1.4	8.3
17	16	1.0	7.5
18	17	1.0	6.7
19	18	1.0	5.9
20	19	1.0	5.1
21	20	1.0	4.2
22	21	1.0	3.3
23	22	1.0	2.4
24	23	1.0	1.5
25	24	1.0	1.0