Retirement Savings Accounts Regulations 1997

SCHEDULE 1A  

(subregulation 1.07(2) )

PAYMENT LIMITS FOR PENSIONS WITH A COMMENCEMENT DAY ON OR AFTER 1 JANUARY 2006

SECTION 8.  

8.    
For clause 6 , a reversionary beneficiary is a child beneficiary until:

(a)    his or her 16th birthday; or

(b)    if the reversionary beneficiary is a full-time student at age 16 - the earlier of:

(i) the end of his or her full-time studies; or

(ii) his or her 25th birthday.

Table 1

Factors for allocated pensions - general

Item	Age of Beneficiary	Maximum Pension Valuation Factor	Minimum Pension Valuation Factor
1	20 or less	12.0	29.2
2	21	12.0	29.0
3	22	12.0	28.9
4	23	12.0	28.7
5	24	12.0	28.6
6	25	12.0	28.4
7	26	12.0	28.3
8	27	12.0	28.1
9	28	12.0	27.9
10	29	12.0	27.8
11	30	12.0	27.6
12	31	12.0	27.4
13	32	12.0	27.2
14	33	12.0	27.0
15	34	12.0	26.8
16	35	12.0	26.6
17	36	12.0	26.4
18	37	12.0	26.2
19	38	12.0	26.0
20	39	12.0	25.8
21	40	12.0	25.5
22	41	12.0	25.3
23	42	12.0	25.0
24	43	12.0	24.8
25	44	12.0	24.5
26	45	12.0	24.2
27	46	12.0	24.0
28	47	12.0	23.7
29	48	12.0	23.4
30	49	12.0	23.1
31	50	12.0	22.8
32	51	11.9	22.5
33	52	11.8	22.2
34	53	11.8	21.8
35	54	11.7	21.5
36	55	11.5	21.1
37	56	11.4	20.8
38	57	11.3	20.4
39	58	11.2	20.1
40	59	11.0	19.7
41	60	10.9	19.3
42	61	10.7	18.9
43	62	10.5	18.5
44	63	10.3	18.1
45	64	10.1	17.7
46	65	9.9	17.3
47	66	9.6	16.8
48	67	9.3	16.4
49	68	9.1	16.0
50	69	8.7	15.5
51	70	8.4	15.1
52	71	8.0	14.6
53	72	7.6	14.2
54	73	7.2	13.7
55	74	6.7	13.3
56	75	6.2	12.8
57	76	5.7	12.3
58	77	5.1	11.9
59	78	4.5	11.4
60	79	3.8	10.9
61	80	3.1	10.5
62	81	2.3	10.0
63	82	1.4	9.6
64	83	1	9.1
65	84	1	8.7
66	85	1	8.3
67	86	1	7.9
68	87	1	7.5
69	88	1	7.2
70	89	1	6.9
71	90	1	6.6
72	91	1	6.3
73	92	1	6.0
74	93	1	5.8
75	94	1	5.5
76	95	1	5.3
77	96	1	5.1
78	97	1	4.9
79	98	1	4.7
80	99	1	4.5
81	100 or more	1	4.4

Example

Clive Long, who turns 65 on 8 February 2006, invests $100,000 in an allocated pension fund on 1 March 2006. The date of the first payment to Mr Long is 1 April 2006.

2005/06: The maximum and minimum payments for 2005/06 are based on:

(a) the account balance on the day of purchase; and

(b) the beneficiary's age of 65 on the day of purchase:

$100,000 9.9

×

122 365

=

$3,376.23 (maximum limit, rounded to $3,380)

$100,000 17.3

×

122 365

=

$1,932.06 (minimum limit, rounded to $1,930)

Assume that total payments to Mr Long at 30 June 2006 are $3,000.

2006/07: The maximum and minimum payments for 2006/07 are based on:

(a) the account balance on 1 July 2006 which is $99,300 (residue $97,000 + earnings of $2,300); and

(b) the beneficiary's age of 65 on 1 July 2006:

$99,300 9.9

=

$10,030.30 (maximum limit, rounded to $10,030)

$99,300 17.3

=

$5,739.88 (minimum limit, rounded to $5,740)

Table 2

Factors for allocated pensions - child beneficiary (reversion)

Item	Age of Beneficiary	Maximum Pension Valuation Factor	Minimum Pension Valuation Factor
1	0	9.3	17.4
2	1	9.1	16.9
3	2	8.7	16.4
4	3	8.4	15.9
5	4	8.0	15.4
6	5	7.6	14.8
7	6	7.2	14.3
8	7	6.7	13.7
9	8	6.2	13.1
10	9	5.7	12.4
11	10	5.1	11.8
12	11	4.5	11.1
13	12	3.8	10.5
14	13	3.1	9.7
15	14	2.3	9.0
16	15	1.4	8.3
17	16	1	7.5
18	17	1	6.7
19	18	1	5.9
20	19	1	5.1
21	20	1	4.2
22	21	1	3.3
23	22	1	2.4
24	23	1	1.5
25	24	1	1.0