{"id":"F2008B00495","name":"Superannuation (PSS) (Surcharge Commutation Amount - Conversion Factors) Determination No. 1","slug":"superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":139042,"registerId":"commonwealth-F2008B00495-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (PSS) (Surcharge Commutation Amount - Conversion Factors) Determination No. 1","content":"COMMONWEALTH OF AUSTRALIA\n\nSUPERANNUATION ACT 1990\n\nDETERMINATION\n\nThe PSS Board, pursuant to rule 15.1.9 of the Rules for the Administration of the Public Sector Superannuation Scheme and in accordance with advice received from an actuary, DETERMINES as follows:\n\nCitation\n\n1. This determination may be cited as the \"Superannuation (PSS) (Surcharge Commutation Amount - Conversion Factors) Determination No. 1\".\n\nCommencement\n\n2. Pursuant to clause 5 of the Fourteenth Amending Deed dated 20 August 2001, this determination shall be deemed to have taken effect on 22 August 2001.\n\nPurpose\n\n3. The purpose of this determination is to determine, in accordance with advice from an actuary, conversion factors that are applicable for the purpose of working out, in relation to a person, the yearly amount that would have to be paid to discharge a liability equal to the person’s Surcharge Commutation Amount.\n\nInterpretation\n\n4.(1) In this determination, “Act” means the Superannuation Act 1990.\n\n(2) Words and expressions defined in the Act have the same meaning in this determination.\n\nSchedule\n\nConversion factors to be used in relation to pensions\n\n5\\. The conversion factors for the purposes of rule 15.1.9 are set out in the Table in the Schedule to this determination.\n\n  \n\\[Superannuation (PSS) (Surcharge Commutation Amount - Conversion Factors)\n\nDetermination No. 1 (continued)\\]\n\nS. P. Gibbs Helen Ayres\n\n......................................................... ......................................................\n\nS.P. Gibbs H. Ayres\n\n(Chief Executive Officer) (Secretary)\n\nThe Common Seal of the PSS Board was hereunto affixed by authority of the Board\n\nDated this sixteenth day of January 2002 day of 2001\n\nSCHEDULE\n\nCONVERSION FACTORS REQUIRED UNDER PSS RULE 15.1.9\n\n| AGE ATLAST BIRTHDAY | CONVERSIONFACTOR |     | AGE ATLAST BIRTHDAY | CONVERSIONFACTOR |\n| ------------------- | ---------------- | --- | ------------------- | ---------------- |\n| 15                  | 24.1             |     | 43                  | 21.2             |\n| 16                  | 24.0             |     | 44                  | 21.0             |\n| 17                  | 24.0             |     | 45                  | 20.8             |\n| 18                  | 23.9             |     | 46                  | 20.6             |\n| 19                  | 23.8             |     | 47                  | 20.4             |\n| 20                  | 23.8             |     | 48                  | 20.2             |\n| 21                  | 23.7             |     | 49                  | 20.0             |\n| 22                  | 23.6             |     | 50                  | 19.7             |\n| 23                  | 23.6             |     | 51                  | 19.5             |\n| 24                  | 23.5             |     | 52                  | 19.3             |\n| 25                  | 23.4             |     | 53                  | 19.0             |\n| 26                  | 23.3             |     | 54                  | 18.8             |\n| 27                  | 23.2             |     | 55                  | 18.5             |\n| 28                  | 23.1             |     | 56                  | 18.2             |\n| 29                  | 23.0             |     | 57                  | 17.9             |\n| 30                  | 22.9             |     | 58                  | 17.7             |\n| 31                  | 22.8             |     | 59                  | 17.4             |\n| 32                  | 22.7             |     | 60                  | 17.0             |\n| 33                  | 22.6             |     | 61                  | 16.7             |\n| 34                  | 22.5             |     | 62                  | 16.4             |\n| 35                  | 22.4             |     | 63                  | 16.1             |\n| 36                  | 22.2             |     | 64                  | 15.7             |\n| 37                  | 22.1             |     | 65                  | 15.3             |\n| 38                  | 22.0             |     | 66                  | 15.0             |\n| 39                  | 21.8             |     | 67                  | 14.6             |\n| 40                  | 21.7             |     | 68                  | 14.2             |\n| 41                  | 21.5             |     | 69                  | 13.8             |\n| 42                  | 21.3             |     | 70                  | 13.4             |","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly scoped to its original purpose of providing actuarial conversion factors for surcharge commutation calculations. It has not expanded beyond this specific technical function."},"complexity_factors":["Very short document (approximately 1 page of substantive content)","Only 2 defined terms in the interpretation section","Single purpose: provides a lookup table of conversion factors","No conditional logic, exceptions, or cross-referencing beyond basic references to the parent Act and PSS Rules","Straightforward tabular data with clear age-to-factor mapping","No nested provisions or operative complexity"],"plain_english_summary":"This instrument sets age-based conversion factors used by the Public Sector Superannuation Scheme to turn a former Superannuation Contributions Surcharge lump-sum debt into an equivalent annual pension reduction. It affects PSS members who elected to commute surcharge liabilities into reduced ongoing pensions, ensuring actuarially fair spreads of the debt over expected payment years; the factors fall as age rises."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This determination is narrowly technical: it supplies numeric conversion factors for use under an existing PSS rule (15.1.9). It does not expand the Board’s powers, change who is covered by the rule, or introduce new procedural steps. In that sense it does not broaden the legislation’s scope beyond the original, technical purpose of providing actuarial conversion factors to operationalise the rule."},"complexity_factors":["Very short single instrument (5 operative clauses plus Schedule).","Single table of conversion factors covering ages 15–70 (56 discrete entries).","One defined term introduced locally (\"Act\") and reliance on definitions in the Superannuation Act 1990 (cl. 4).","Cross-reference to an external scheme rule (PSS rule 15.1.9) and to the Fourteenth Amending Deed (cl. 2 and cl. 5).","Requirement that factors be set on actuary advice (cl. 3) but no embedded actuarial formulas — factors are literal numeric values in the Schedule."],"plain_english_summary":"**What this instrument does (mechanics)**\n\n- This is a short, technical determination made by the Public Sector Superannuation (PSS) Board. It sets a table of numeric \"conversion factors\" that the Board must use when converting a person’s Surcharge Commutation Amount into an equivalent yearly payment (see cl. 3 and cl. 5, Schedule).\n- The table in the Schedule lists an age at last birthday (15 through 70) and a corresponding conversion factor for each age. Those factors are the numbers the administrator uses under PSS rule 15.1.9 to calculate the annual amount required to discharge a member’s surcharge commutation liability.\n- The determination takes effect from an earlier date as stated in cl. 2 (deemed commencement 22 August 2001) and adopts terminology from the Superannuation Act 1990 (cl. 4).\n\n**Who it affects**\n\n- Members (or former members) of the PSS who have a Surcharge Commutation Amount — i.e. a surcharge liability that can be commuted into an annual payment under rule 15.1.9. Those people will have the yearly payment calculated by reference to their age using the table in the Schedule.\n- The PSS Board and scheme administrators, who must apply the table when calculating annual amounts and keep records of the calculations.\n\n**Why it matters (purpose claims and operational implications)**\n\n- The stated purpose is to provide, on the advice of an actuary, the conversion factors used to work out the yearly payment equivalent for a person’s Surcharge Commutation Amount (cl. 3). That is a technical actuarial step needed to implement rule 15.1.9.\n\n- Who decides and what that decision does: the PSS Board adopts the factors (signed by officials) on actuarial advice (covering clauses 3 and 5). Administrators use the table to convert a lump-sum surcharge liability into an annual payment. That changes how a member’s liability is expressed and collected (from a lump sum to a yearly instalment amount).\n\n**Costs, incentives and trade-offs (practical effects)**\n\n- Incidence: The person with the Surcharge Commutation Amount is the one who will pay the yearly amount that the table helps determine. The Board and administrators bear the small administrative task of applying the table.\n- Age-related effect: The factors decrease with age in the table (younger ages have larger factors). Mechanically, for a given lump-sum liability, a larger factor produces a smaller annual payment and a smaller factor produces a larger annual payment — reflecting actuarial expectation of remaining payment years.\n- Administrative burden: Low. Applying a published table to a known formula is a routine administrative task for the scheme.\n- Actuarial assumption risk: The table embodies actuarial assumptions (mortality, discounting, expected payment period). If those assumptions become outdated, the conversion factors might no longer reflect appropriate equivalence between lump sums and annual payments. That is an implementation risk because the factors were fixed by this determination and would need updating by a later determination to change.\n- Predictability and fairness: Using a single table produces consistent outcomes across members but ties outcomes to the chosen actuarial basis (the actuary’s assumptions). Different actuarial bases would shift annual payment amounts; the instrument does not itself set those assumptions in text other than to record that factors follow actuary advice (cl. 3).\n\n**Concrete mechanism summary (one-liner)**\n\n- The PSS Board fixes a table of age-based conversion factors (Schedule) which scheme administrators must use under rule 15.1.9 to convert a person’s Surcharge Commutation Amount into an annual payment (see cl. 5 and Schedule)."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1","history":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1/history","analysis":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1/analysis","conflicts":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1/conflicts","importantCases":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1/important-cases","documents":"/api/acts/superannuation-pss-surcharge-commutation-amount-conversion-factors-determination-no-1/documents"}}