Document ID: chunk:federal_register_of_legislation:F2023C01022:clause:2_36
Version: federal_register_of_legislation:F2023C01022
Segment Type: clause
Provision Reference: sch 2 cl 36
Character Range: 388165–389724

36  Method—conversion of lump sum to pension
 (1) This clause applies if the amount of the pension payable in respect of the interest is to be determined by reference to the conversion of a lump sum amount when payment of the pension commences.
 (2) The method is:

where:
DB is the nominal value of the lump sum at the relevant date.
Cda is the factor that would be used to convert the lump sum to a pension at the end of the minimum deferral period.
Pda is the pension valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension, its indexation rate (if any), guarantee period (if any) and the member spouse's age at the end of the minimum deferral period.
Rsa is the reversion valuation factor mentioned in the clause of Part 3 of this Schedule that applies to the pension and the member spouse's age in completed years at the relevant date.
r is the proportion of the pension that a non‑member spouse would receive as the reversionary beneficiary of the member spouse on the death of the member spouse, as provided by the trustee under section 90XZB or 90YZR of the Act.
Dy+m is the discount valuation factor calculated in accordance with subclause 31(3) of this Schedule.
 (3) For the purpose of calculating the discount valuation factor under subclause (2):
minimum deferral period has the meaning given by subclause 31(4) of this Schedule.
nominal value has the meaning given by subclause 31(4) of this Schedule.

Part 7—Interest relating to former employment—benefit payable as combination of lump sum and pension