Retirement Savings Accounts Amendment Regulations 2007 (No. 1) (104 of 2007)

Schedule 3   Amendments commencing on 1 July 2007

[55]   After Schedule 4

insert

Schedule 5 Minimum payment amount for an account-based pension

(regulation 1.08A)

1(1) Subject to clauses 2 and 3, the amount of payments mentioned in paragraph 1.07 (3D) (a) is the amount worked out using the formula:

(2) In subclause (1):

account balance means:

(a) the amount of the pension account balance:

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

(ii) if that year is the year in which the pension payments commence - on the commencement day; or

(b) if the amount of the pension account balance under paragraph (a) is less than the withdrawal benefit to which the beneficiary would be entitled if the pension were to be fully commuted - the amount of the withdrawal benefit.

percentage factor means the percentage factor specified in the item in the table in clause 4 that applies to the beneficiary because of the beneficiary’s age on:

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

(b) if that is the year in which the pension payments commence - the commencement day.

2 For the determination of the minimum total payment in the year in which the commencement day of the pension occurs, if that day is a day other than 1 July, the applicable value specified 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.

3 If the commencement day of the pension is on or after 1 June in a financial year, no payment is required to be made for that financial year.

4 An amount determined under this Schedule is to be rounded to the nearest 10 whole dollars. If the amount ends in an exact 5 dollars, it is to be rounded up to the next 10 whole dollars.

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