Superannuation Industry (Supervision) Regulations 1994

PART 1A - ANNUITIES AND PENSIONS  

Division 1A.2 - Operating standards  

REGULATION 1.08   RESTRICTION ON FACTORS FOR CONVERTING PENSIONS  

1.08(1)    
For the purposes of subsection 31(1) of the Act, it is a standard applicable to the operation of a regulated superannuation fund that the fund must not use a factor, for converting a prescribed pension to a lump sum, that is greater than the pension valuation factor that would apply under Schedule 1B if the commencement day of the pension were the day on which it was commuted.

1.08(2)    

Subregulation (1) does not apply to the use of a factor that:

(a)    

the Regulator has approved in writing; or

(b)    

is for conversion in relation to a commutation to pay a superannuation contributions surcharge; or

(c)    

is for conversion in relation to a commutation to give effect to an entitlement of a non-member spouse under a payment split; or

(d) is for conversion in relation to a commutation in order to comply with section 136-80 in Schedule 1 to the Taxation Administration Act 1953 .

1.08(3)    

In this regulation, prescribed pension :

(a)    means a pension (including a benefit that is taken, under these regulations, to be a pension for the purposes of the Act), other than a benefit that is taken, under subregulation 1.06(1) , to be a pension by reason only that it is provided under rules of a superannuation fund that meet the standards of subregulation 1.06(2) ; but

(b)    does not include any of the following:

(i) an account-based pension;

(ii) an allocated pension;

(iii) a market linked pension.