Document ID: chunk:federal_register_of_legislation:F2023C01022:clause:6_3
Version: federal_register_of_legislation:F2023C01022
Segment Type: clause
Provision Reference: sch 6 cl 3
Character Range: 506591–507783

3  Method
 (1) The method is:

where:
GVP is the gross value of the pension, determined in accordance with regulation 42.
GVLS is the gross value of the lump sum, determined using the method of valuation set out in subclause (2).
 (2) For subclause (1), the method of determining the gross value of the lump sum (GVLS) is:

where:
LS is the nominal value of the lump sum at the relevant date.
Dy+m is the discount valuation factor calculated in accordance with subclause (3).
 (3) For subclause (2), the discount valuation factor (Dy+m) at the relevant date is:

where:
Dy is the discount valuation factor mentioned in clause 4 of this Schedule that applies to the lump sum and the minimum deferral period in complete years at the relevant date.
m is the number of complete months of the minimum deferral period applicable to the lump sum that are not included in the remaining complete years of that period at the relevant date.
Dy+1 is the discount valuation factor mentioned in clause 4 of this Schedule that applies to the lump sum and the minimum deferral period applicable to the lump sum at the completion of the next year after the year mentioned in the definition of the factor Dy.