Document ID: chunk:federal_register_of_legislation:F2025L00178:clause:3_36
Version: federal_register_of_legislation:F2025L00178
Segment Type: clause
Provision Reference: sch 3 cl 36
Character Range: 457537–458726

36  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 possible amount of pension that 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 could, and were to, be taken as a lump sum, calculated using the method set out in Part 2 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:
 (a) set out in Part 3 of this Schedule; or
 (b) that applies because of Part 4 of this Schedule.
Note: If Part 4 applies, then a method in Part 2 or 3 of Schedule 5 applies.