Superannuation Industry (Supervision) Regulations 1994

PART 1A - ANNUITIES AND PENSIONS  

Division 1A.1  

REGULATION 1.06B   MAXIMUM COMMUTATION AMOUNT FOR CERTAIN INNOVATIVE SUPERANNUATION INCOME STREAMS  

1.06B(1)    
For the purposes of paragraph 1.06A(3)(d) , the amount for a commutation of a benefit (the income stream ) is:

(a) if the income stream is commuted during the 14 day period starting on the retirement phase start day for the income stream - the access amount for the income stream at the time of the commutation; or

(b) if the income stream is commuted on the death of the beneficiary within the first half of the life expectancy period for the income stream and paragraph (a) does not apply - the access amount for the income stream at the time of the death; or

(c) otherwise:

(i) the amount worked out for the income stream under subregulation (2); or

(ii) if the amount worked out for the income stream under subregulation (2) is less than or equal to zero - nil.

1.06B(2)    
For the purposes of paragraph (1)(c), the amount for the income stream is worked out using the following formula:

where:

previously commuted amount
means the sum of any amounts commuted from the income stream before the time of the commutation.

remaining life expectancy
means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:

(a) starting on the retirement phase start day for the income stream; and

(b) ending on the day of the commutation.