Document ID: chunk:federal_register_of_legislation:F2025L00178:clause:5_17
Version: federal_register_of_legislation:F2025L00178
Segment Type: clause
Provision Reference: sch 5 cl 17
Character Range: 597928–599742

17  Meaning of discount valuation factor
 (1) For the purposes of clause 16, Dy+m is:
where:
Dy means the discount valuation factor mentioned in subclause (2) that applies to the pension and the remaining guarantee period of the pension in complete years at the relevant date.
m means the number of complete months of the remaining guarantee period of the pension that are not included in the remaining complete years at the relevant date.
Dy+1 means the discount valuation factor mentioned in subclause (2) that would apply to the pension and the remaining guarantee period of the pension if the remaining guarantee period at the relevant date were one year more than the actual remaining guarantee period at that date.

Discount valuation factors
 (2) The discount valuation factors that apply are as in the table at the end of this clause. The columns of the table deal with the following:
 (a) column 1 sets out the remaining guarantee period (in complete years);
 (b) column 2 applies if the pension is not indexed;
 (c) column 3 applies if the pension is CPI indexed with a 5% cap;
 (d) column 4 applies if the pension is CPI indexed;
 (e) column 5 applies if the pension is CPI indexed plus 1% with a 5% cap;
 (f) column 6 applies if the pension is CPI indexed plus 1%;
 (g) column 7 applies if the pension is indexed at 3%;
 (h) column 8 applies if the pension is a wage indexed pension;
 (i) column 9 applies if the pension is indexed at 4%;
 (j) column 10 applies if the pension is indexed at 5%.
 (3) In this clause:
CPI means the consumer price index.
wage indexed pension means a pension indexed in accordance with a general wage index (for example, average weekly earnings, or average weekly ordinary time earnings, published by the Australian Bureau of Statistics).

RGP  Discount valuation factors