Superannuation Industry (Supervision) Regulations 1994
(a) a contract mentioned in paragraph 1.05(1)(e) , (1A)(f) or (1B)(c) for a benefit (the annuity );
(b) a contract mentioned in paragraph 1.05(1A)(g) for a benefit that is an annuity under sub-subparagraph 1.05(1A)(g)(i)(B) (the annuity );
(c) rules of a superannuation fund mentioned in paragraph 1.06(1)(c) , (1A)(d) or (1B)(c) for a benefit (the pension ).
(a) the commencement day; or
(b) the anniversary of the commencement day. 1.07B(3) [Commutation]
(a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non-member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001 ; or
(c) the annuity or pension has paid, in the payment year in which the commutation is to take place, at least the minimum amount under subregulation (4). 1.07B(4) [Minimum annual amount]
For paragraph (3)(c), the minimum amount is calculated using the formula:
|Minimum annual amount||×||
Days in payment period
Days in payment year
(a) the number of days in the period that:
(i) begins on:
(A) the day after the anniversary of the commencement day that occurs before the day on which the commutation is to take place; or
(B) if the annuity or pension commenced on the day before the start of the payment year in which the commutation is to take place - the day after the commencement day; and
(ii) ends on the day on which the commutation is to take place; or
(b) if subregulation (5) applies - 1 day.
(a) for an annuity mentioned in paragraph (1)(b) - the minimum amount that the annuity would pay as fixed-size payments in the payment year if the annuity were not commuted; and
(b) otherwise - the minimum amount that the annuity or pension would pay in the payment year if the annuity or pension were not commuted. 1.07B(5) [Commencement of annuity]
(a) the payment year is taken to commence on the commencement day and end on the day before the anniversary of the commencement day; and
(b) there is taken to be 1 day in the payment period. 1.07B(6) [Future CPI]
If, to calculate the minimum annual amount, it is necessary to use a future unknown value of the CPI, that value is taken to be equal to the CPI for the last known quarter.
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