The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.P.160 Pension valuation factor

Usage

This definition applies to all payments.

Definition

A pension valuation factor is a multiple applied to the gross annual payment received from an asset tested defined benefit income stream to determine the asset value of that income stream (1.1.I.70). The pension valuation factor is based on the person's life expectancy and the level of indexation of payments that applies to the relevant income stream.

Pension valuation factors are contained in tables which have been determined by the Minister under a disallowable instrument.

Act reference: Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 2015

Policy reference: SS Guide 4.9.5.50 Pension Valuation Factors for Defined Benefit Income Streams

Last reviewed: 1 July 2016

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