Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p18
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 18/52)
Character Range: 114455–117133

a benefit that arises under rules that meet the standards of subregulation (7)—the rules also meet the standards of regulation 1.07B; and
 (d) for a benefit that arises under rules that meet the standards of subregulation (8)—the rules also meet the standards of regulation 1.07C.
 (2) Rules meet the standards of this subregulation if they ensure that:
 (a) the pension is paid at least annually throughout the life of the primary beneficiary in accordance with paragraphs (b) and (c) and, if there is a reversionary beneficiary:
 (i) throughout the reversionary beneficiary's life; or
 (ii) if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the pension—at least until his or her 16th birthday; or
 (iii) if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and
 (b) the size of payments of benefit in a year is fixed, allowing for variation only:
 (i) as specified in the governing rules; or
 (ii) to allow commutation to pay a superannuation contributions surcharge; or
 (iii) to allow an amount to be paid under a payment split and reasonable fees in respect of the payment split to be charged; and
 (c) unless the Regulator otherwise approves, the sum payable as benefit in each year to the primary beneficiary or to the reversionary beneficiary, as the case may be, is:
 (i) if CPIc is not less than CPIp—not less than SPp; or
 (ii) if CPIc is less than CPIp—not less than:

  where:
  CPIc means the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which payment is to be made.
  CPIp means the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year.
  SPp means the sum payable in the immediately preceding year;
  and
 (d) the pension does not have a residual capital value; and
 (e) the pension cannot be commuted except in any of the following circumstances:
 (i) the pension is not funded from the commutation of:
 (A) an annuity that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
 (B) a pension that meets the standards of this subregulation or subregulation (3), (7) or (8); or
 (C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
  and the commutation is made within 6 months after the commencement day of the pension;
 (ii) the commutation is made to the benefit of a reversionary beneficiary on the death of the primary beneficiary and within one of the following periods after the commencement