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The amount of pension payment which a member can receive in each financial year must be within the minimum and maximum limits the SIS Act has set. These limits are calculated each 1 July, by dividing the account balance of an allocated pension by the minimum and maximum factors. The applicable factors are determined by the member’s age at that date.
| The Minimum & Maximum Pension Factor Table noted below is set out in Schedule 1A of the SIS Regs. These are used to determine the minimum and maximum pension levels which must be paid to qualify for tax concessions | |||
| Table | |||
| Column 1 Item |
Column 2 Age of Beneficiary |
Column 3 Maximum Pension Valuation Factor |
Column 4 Minimum Pension Valuation Factor |
| 31 | 50 | 9.9 | 21.5 |
| 32 | 51 | 9.9 | 21.2 |
| 33 | 52 | 9.8 | 20.9 |
| 34 | 53 | 9.7 | 20.5 |
| 35 | 54 | 9.7 | 20.1 |
| 36 | 55 | 9.6 | 29.8 |
| 37 | 56 | 9.5 | 19.4 |
| 38 | 57 | 9.4 | 19.4 |
| 39 | 58 | 9.3 | 18.6 |
| 40 | 59 | 9.1 | 18.2 |
| 41 | 60 | 9.0 | 17.8 |
| 42 | 61 | 8.9 | 17.4 |
| 43 | 62 | 8.7 | 17.0 |
| 44 | 63 | 8.5 | 16.6 |
| 45 | 64 | 8.3 | 16.2 |
| 46 | 65 | 8.1 | 15.7 |
| 47 | 66 | 7.9 | 15.3 |
| 48 | 67 | 7.6 | 14.9 |
| 49 | 68 | 7.3 | 14.4 |
| 50 | 69 | 7.0 | 14.0 |
| 51 | 70 | 6.6 | 13.5 |
| 52 | 71 | 6.2 | 13.1 |
| 53 | 72 | 5.8 | 12.6 |
| 54 | 73 | 5.4 | 12.2 |
| 55 | 74 | 4.8 | 11.7 |
| 56 | 75 | 4.3 | 11.3 |
| 57 | 76 | 3.7 | 10.8 |
| 58 | 77 | 3.0 | 10.4 |
| 59 | 78 | 2.2 | 10.0 |
| 60 | 79 | 1.4 | 9.5 |
| 61 | 80 | 0 | 9.1 |
| 62 | 81 | 0 | 8.7 |
| 63 | 82 | 0 | 8.3 |
| 64 | 83 | 0 | 7.9 |
| 65 | 84 | 0 | 7.5 |
| 66 | 85 | 0 | 7.1 |
| 67 | 86 | 0 | 6.8 |
| 68 | 87 | 0 | 6.4 |
| 69 | 88 | 0 | 6.1 |
| 70 | 89 | 0 | 5.8 |
| 71 | 90 | 0 | 5.5 |
| 72 | 91 | 0 | 5.3 |
| 73 | 92 | 0 | 5.0 |
| 74 | 93 | 0 | 4.8 |
| 75 | 94 | 0 | 4.6 |
| 76 | 95 | 0 | 4.4 |
| 77 | 96 | 0 | 4.2 |
| 78 | 97 | 0 | 4.0 |
| 79 | 98 | 0 | 3.8 |
| 80 | 99 | 0 | 3.7 |
| 81 | 100 or more | 0 | 3.5 |
Example
Iva Fortune, who turns 60 on 5 September 1994, invests $100,000 in an allocated pension fund on 1 October 1994. The date of the first payment to Ms Fortune is 1 January 1995.
1994/95: The maximum and minimum payments for 1994/95 are based on:
(a) the account balance on the day of purchase; and
(b) the beneficiary’s age of 60 on the day of purchase:
Assume that total payments to Ms Fortune at 30 June 1995 are $6,000.
1995/96: The maximum and minimum payments for the year 1995/96 are based on:
(a) the account balance on 1 July 1995 which is $99,145 (residue $94,000 + interest of $5,145); and
(b) the beneficiary’s age of 60 on 1 July 1995:
The minimum and maximum income levels for Allocated Pensions/Annuities is calculated as at the date of purchase and then at 1st July each year.
The minimum and maximum levels are pro-rated during the first year. If the pension commenced between 1st April and 30 June, the first income payment does not have to be made until the following financial year.