Document ID: chunk:federal_register_of_legislation:F2025L00178:clause:3_5
Version: federal_register_of_legislation:F2025L00178
Segment Type: clause
Provision Reference: sch 3 cl 5
Character Range: 368912–370380

5  Method
 (1) The method is:
where:
VN means the lump sum value of the accrued pension benefit in respect of the interest at the member's retirement age, calculated in accordance with subclause (2).
fy+m means the lump sum valuation factor calculated in accordance with subclause 3(2) of this Schedule.
 (2) For the purposes of subclause (1), the lump sum value of the accrued pension benefit in respect of the interest at the member's retirement age (VN) is calculated as follows:
where:
B means the value of the pension benefit that had accrued in respect of the interest at the relevant date, being the product of the member's accrued benefit multiple for a pension, as provided by the trustee under section 90XZB or 90YZR of the Act, and the salary figure on which benefits in respect of the interest, at that date, would be based, assuming that the member were eligible to retire at that date.
Pra means the pension valuation factor mentioned in the relevant clause of this Part that applies to the pension and the member's retirement age.
Rsa means the reversion valuation factor mentioned in the relevant clause of this Part that applies to the pension and the member's age in completed years at the relevant date.
r means the proportion of payments in respect of the interest that a non‑member spouse would receive as the reversionary beneficiary of the member, on the death of the member, as provided by the trustee under section 90XZB or 90YZR of the Act.