4.9.5 Life expectancy, pension valuation factor & payment factor tables
This section contains life expectancy tables, used to determine the relevant number for certain income streams (1.1.I.70). It also contains a table of pension valuation factors for defined benefit income streams as well as general provisions for pension valuation factors, pension valuation factors for allocated income streams and payment factors for market-linked income streams.
For lifetime, defined benefit and allocated income streams, the relevant number is based on the income support recipient's, or reversionary beneficiary's age (if applicable), at the beginning of the period to which the first income stream payment relates.
Example: A female income support recipient is 61.5 years of age on 1 January 2000. She purchases a life expectancy product, which commences payment on 2 January 2000. For the purposes of applying the correct life expectancy factor to the new product her age is 61. From the table at 188.8.131.52 her life expectancy is 23.25. This is because she is 61 in the 12-month period to which the first income stream payment relates.
Act reference: SSAct section 9(1)-'life expectancy', section 1120(3)-'pension valuation factor', section 9(1)-'defined benefit income stream'