Schedule 1B - Pension Valuation Factors

Schedule 1B of ITAA97 is used to value the s1.06(6) pensions for Transfer Balance Cap purposes. Schedule 1B of SISReg is used for the commutation limits.

Schedule 1B of ITAA 97 Factors

Table 1

Age	Factor for indexed lifetime income stream	Factor for non-indexed lifetime income stream
18	23.238	15.405
19	23.158	15.385
20	23.084	15.366
21	23.016	15.349
22	22.956	15.334
23	22.906	15.322
24	22.862	15.312
25	22.816	15.302
26	22.763	15.289
27	22.694	15.271
28	22.612	15.248
29	22.523	15.223
30	22.422	15.194
31	22.310	15.160
32	22.193	15.124
33	22.076	15.086
34	21.950	15.045
35	21.821	15.002
36	21.691	14.958
37	21.553	14.911
38	21.410	14.861
39	21.266	14.809
40	21.113	14.754
41	20.956	14.695
42	20.790	14.632
43	20.609	14.562
44	20.421	14.487
45	20.229	14.409
46	20.030	14.326
47	19.823	14.239
48	19.610	14.148
49	19.391	14.052
50	19.164	13.950
51	18.931	13.844
52	18.691	13.732
53	18.443	13.615
54	18.189	13.492
55	17.927	13.364
56	17.659	13.230
57	17.383	13.089
58	17.100	12.943
59	16.810	12.790
60	16.513	12.631
61	16.209	12.465
62	15.891	12.287
63	15.558	12.099
64	15.213	11.900
65	14.861	11.693
66	14.506	11.480
67	14.144	11.260
68	13.775	11.032
69	13.396	10.794
70	13.011	10.548
71	12.627	10.297
72	12.230	10.035
73	11.815	9.756
74	11.398	9.471
75	10.983	9.183
76	10.566	8.889
77	10.144	8.587
78	9.723	8.282
79	9.314	7.980
80	8.898	7.669
81	8.486	7.357
82	8.087	7.051
83	7.697	6.748
84	7.323	6.455
85	6.966	6.172
86	6.627	5.901
87	6.311	5.647
88	6.010	5.402
89	5.728	5.171
90	5.465	4.954
91	5.217	4.750
92	4.991	4.561
93	4.773	4.379
94	4.566	4.205
95	4.360	4.031

Table 2

Number of years	Factor for indexed fixed-term income stream	Factor for non-indexed fixed-term income stream
0	0.0	0.0
1	0.981	0.969
2	1.925	1.879
3	2.834	2.734
4	3.709	3.536
5	4.550	4.289
6	5.360	4.996
7	6.140	5.661
8	6.891	6.284
9	7.613	6.870
10	8.308	7.420
11	8.977	7.936
12	9.621	8.421
13	10.241	8.876
14	10.837	9.303
15	11.411	9.705
16	11.963	10.081
17	12.495	10.435
18	13.007	10.768
19	13.499	11.079
20	13.973	11.372
21	14.430	11.647
22	14.869	11.906
23	15.291	12.148
24	15.698	12.376
25	16.090	12.590
26	16.466	12.790
27	16.829	12.979
28	17.178	13.156
29	17.514	13.322
30	17.837	13.478

Table 3

Minimum deferral period	Lump sum not indexed	CPI indexed lump sum	Wage indexed lump sum
0	1.000	1.000	1.000
1	0.939	0.963	0.977
2	0.882	0.927	0.954
3	0.829	0.892	0.932
4	0.779	0.859	0.910
5	0.732	0.827	0.889
6	0.689	0.797	0.869
7	0.648	0.768	0.849
8	0.610	0.740	0.830
9	0.575	0.714	0.811
10	0.542	0.688	0.793
11	0.511	0.664	0.776
12	0.483	0.641	0.759
13	0.456	0.619	0.742
14	0.431	0.598	0.727
15	0.409	0.579	0.711
16	0.387	0.560	0.697
17	0.368	0.542	0.683
18	0.350	0.525	0.669
19	0.333	0.509	0.656
20	0.318	0.494	0.644
21	0.304	0.480	0.632
22	0.291	0.467	0.621
23	0.279	0.454	0.610
24	0.269	0.443	0.600
25	0.259	0.432	0.590
26	0.250	0.422	0.582
27	0.243	0.413	0.573
28	0.236	0.404	0.565
29	0.229	0.397	0.558
30	0.224	0.390	0.552

Schedule 1B of SISReg Factors

1. The pension valuation factor for:
   1. a pension that is to be indexed at a rate greater than 8% each year; or
   2. a pension that is included in a class of pensions that are to be indexed at a rate that is greater than 8% each year.
   is the factor determined in writing by APRA, on a case-by-case basis, in relation to that pension or class of pensions.
2. The pension valuation factor for any other pension is the factor applicable to the pension under the following tables.
3. A reference in the tables to "Age" is a reference to the age of the recipient on the commencement day of the relevant pension. If the age of a person on that day falls between two of the ages specified in a table, the pension valuation factor is to be determined by reference to the factors specified under the next greater age group in the table.
4. If a pension has no reversion, the pension valuation factor for the pension is to be the relevant factor specified in the relevant table in the "Below 50%" group.
5. If the rules of a superannuation fund provide that a pension is indexed to movements in salary, the pension valuation factor for the pension is the relevant factor specified in the table relating to an indexation rate of 8%.
6. If a pension is indexed by reference to movements in a price index published by the Australian Statistician, the pension valuation factor for the pension is the relevant factor applicable under the table into which the standard indexation rate falls.
7. Subject to clause 8, if the governing rules of a superannuation fund provide for a pension to be indexed at the discretion of the trustees of the fund, the pension valuation factor is to be determined as if the indexation rate were a rate worked out by:
   1. adding together the indexation rates determined by the trustees for pensions of same kind as that pension in respect of each year in the period of 5 years of which the year of income in which the pension commences to be paid is the last year; and
   2. dividing the result by 5.
8. If a superannuation fund to which clause 7 applies has been in existence, or making pension payments, for less than a continuous period of 5 years, the pension valuation factor is to be the relevant factor specified in the table that relates to the standard indexation rate.

Tables:

Indexation rate of 8%    (Use for AWI/AWOTE indexation)
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	33	31	29	27	25	23	21	18	16	14	12	10	9	9
50% to 75%	34	33	31	29	27	25	22	20	18	15	13	11	10	9
Above 75%	35	34	32	30	28	26	24	21	19	16	14	12	10	10

 

Indexation rate of at least 7% but less than 8%    (use for CPI indexation)
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	26	25	24	23	21	20	18	16	14	13	11	10	9	8
50% to 75%	27	26	25	24	23	21	19	18	16	14	12	10	9	9
Above 75%	28	27	26	25	24	22	20	19	17	15	13	11	10	9

 

Indexation rate of at least 6% but less than 7%
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	22	21	20	19	18	17	16	14	13	12	10	9	8	8
50% to 75%	22	22	21	20	19	18	17	16	14	13	11	10	9	8
Above 75%	23	22	22	21	20	19	18	16	15	13	12	10	9	8

 

Indexation rate of at least 5% but less than 6%
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	18	18	17	17	16	15	14	13	12	11	10	9	8	8
50% to 75%	19	18	18	17	17	16	15	14	13	12	10	9	8	8
Above 75%	19	19	18	18	17	17	16	15	13	12	11	9	8	8

 

Indexation rate of at least 4% but less than 5%
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	16	15	15	15	14	13	13	12	11	10	9	8	8	7
50% to 75%	16	16	15	15	15	14	13	13	12	11	10	9	8	7
Above 75%	16	16	16	15	15	15	14	13	12	11	10	9	8	7

 

Indexation rate of at least 3% but less than 4%
Reversion	Age next birthday of recipient on commencement day of pension
	20 or less	21 to 25	26 to 30	31 to 35	36 to 40	41 to 45	46 to 50	51 to 55	56 to 60	61 to 65	66 to 70	71 to 75	76 to 80	81 or more
Below 50%	14	14	13	13	13	12	11	11	10	9	8	8	7	7
50% to 75%	14	14	14	13	13	13	12	11	11	10	9	8	7	7
Above 75%	14	14	14	14	13	13	12	12	11	10	9	8	8	7