Document ID: chunk:federal_register_of_legislation:F2025L00178:clause:3_46
Version: federal_register_of_legislation:F2025L00178
Segment Type: clause
Provision Reference: sch 3 cl 46
Character Range: 483981–485156

46  Method—restriction on proportion of pension that may be commuted to lump sum
 (1) This clause applies if:
 (a) the benefit in respect of the interest is payable as a pension; and
 (b) the governing rules of the eligible superannuation plan in which the interest is held restrict the proportion of the pension that may be commuted to a lump sum.
 (2) The method is:
where:
Maxls% means:
 (a) the maximum amount of pension that, at the end of the minimum deferral period, may be commuted to a lump sum expressed as a percentage of the amount of the pension that would be payable if the whole benefit were to be taken as a pension; or
 (b) if the percentage calculated under paragraph (a) is greater than 25%—25%.
PVls means the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 6 of this Schedule.
PVp means the present value of the pension that would apply if the whole benefit were to be taken as a pension, calculated using the method set out in Part 7 of this Schedule.
 (3) In this clause:
minimum deferral period has the meaning given by subclause 39(4) of this Schedule.