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.

4.9.5.60 Pension Valuation Factors & Percentage Factors for Allocated & Account Based Income Streams

Summary

This topic contains the pension valuation factors (PVFs) and the percentage factors for allocated and account based income streams specified in the Superannuation Industry (Supervision) Regulations 1994 (SISR) and the Superannuation Industry (Supervision) Amendment Regulations 2007 (SISAR) where:

  • SISR Schedule 1A shows allowable payment limits for annuities and pensions with a commencement day before 1 January 2006, and
  • SISR Schedule 1AAB shows allowable payment limits for annuities and pensions with a commencement day from 1 January 2006 to 19 September 2007.
  • The values in SISAR Table 1A specify the allowable minimum payment limits that may be applied to ALL allocated and account based income streams from 1 July 2007, irrespective of their commencement date.

Note 1: Allocated income streams with commencement days before 1 July 2007 may still use the PVFs being used before that date. However, if the recipient wishes, they may use the new minimum pension limits that apply from that date.

Note 2: An income stream with a commencement day from 1 January 2006 to 30 June 2006 may also use the PVFs in SISR Schedule 1A for payments made during this period. However, payments made from these income streams subsequent to 30 June must be in accordance with the PVFs specified in SISR Schedule 1AAB.

Note 3: For the financial years commencing 1 July 2008 and ending 30 June 2011, the minimum amount of payments is half of the amount worked out using the appropriate formula specified in SISR Schedules 1A, 1AAB and 7.

Note 4: For the financial year commencing 1 July 2011 and ending 30 June 2012, the minimum amount of payments is 75% of the amount worked out using the appropriate formula specified in SISR Schedules 1A, 1AAB and 7.

Policy reference: SS Guide 4.9.2.30 Income test assessment of asset-test exempt income streams, 4.9.3.30 Means test assessment of asset-tested income streams (long term)

PVFs & percentage factors

The following tables show the maximum and minimum PVFs and percentage factors for recipients according to their age on 1 July each year.

SISR Schedule 1A - Commencement Day before 1 January 2006

Age Max PVF Min PVF Age Max PVF Min PVF Age Max PVF Min PVF
41 10 24.3 61 8.9 17.4 81 1 8.7
42 10 24.0 62 8.7 17.0 82 1 8.3
43 10 23.7 63 8.5 16.6 83 1 7.9
44 10 23.4 64 8.3 16.2 84 1 7.5
45 10 23.1 65 8.1 15.7 85 1 7.1
46 10 22.8 66 7.9 15.3 86 1 6.8
47 10 22.5 67 7.6 14.9 87 1 6.4
48 10 22.2 68 7.3 14.4 88 1 6.1
49 10 21.9 69 7.0 14.0 89 1 5.8
50 9.9 21.5 70 6.6 13.5 90 1 5.5
51 9.9 21.2 71 6.2 13.1 91 1 5.3
52 9.8 20.9 72 5.8 12.6 92 1 5.0
53 9.7 20.5 73 5.4 12.2 93 1 4.8
54 9.7 20.1 74 4.8 11.7 94 1 4.6
55 9.6 19.8 75 4.3 11.3 95 1 4.4
56 9.5 19.4 76 3.7 10.8 96 1 4.2
57 9.4 19.0 77 3.0 10.4 97 1 4.0
58 9.3 18.6 78 2.2 10.0 98 1 3.8
59 9.1 18.2 79 1.4 9.5 99 1 3.7
60 9.0 17.8 80 1 9.1 100 or more 1 3.5

SISR Schedule 1AAB - Commencement Day from 1 January 2006

Age Max PVF Min PVF Age Max PVF Min PVF Age Max PVF Min PVF
41 12 25.3 61 10.7 18.9 81 2.3 10.0
42 12 25.0 62 10.5 18.5 82 1.4 9.6
43 12 24.8 63 10.3 18.1 83 1 9.1
44 12 24.5 64 10.1 17.7 84 1 8.7
45 12 24.2 65 9.9 17.3 85 1 8.3
46 12 24.0 66 9.6 16.8 86 1 7.9
47 12 23.7 67 9.3 16.4 87 1 7.5
48 12 23.4 68 9.1 16.0 88 1 7.2
49 12 23.1 69 8.7 15.5 89 1 6.9
50 12 22.8 70 8.4 15.1 90 1 6.6
51 11.9 22.5 71 8.0 14.6 91 1 6.3
52 11.8 22.2 72 7.6 14.2 92 1 6.0
53 11.8 21.8 73 7.2 13.7 93 1 5.8
54 11.7 21.5 74 6.7 13.3 94 1 5.5
55 11.5 21.1 75 6.2 12.8 95 1 5.3
56 11.4 20.8 76 5.7 12.3 96 1 5.1
57 11.3 20.4 77 5.1 11.9 97 1 4.9
58 11.2 20.1 78 4.5 11.4 98 1 4.7
59 11.0 19.7 79 3.8 10.9 99 1 4.5
60 10.9 19.3 80 3.1 10.5 100 or more 1 4.4

SISAR Schedule 7 - Table 1A

Item Age of Beneficiary Percentage Factor
1 Under 65 4
2 65 - 74 5
3 75 - 79 6
4 80 - 84 7
5 85 - 89 9
6 90 - 94 11
7 95 or more 14

Policy reference: SS Guide 4.9.3.30 Means test assessment of asset-tested income streams (long term)

Last reviewed: