{"id":"F2005B01181","name":"Veterans' Entitlements (Pension Valuation Factor) Determination 1998","slug":"veterans-entitlements-pension-valuation-factor-determination-1998","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":32479,"registerId":"commonwealth-F2005B01181-current","compilationNumber":null,"startDate":"2026-04-01","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Instrument 1998 No.9","sectionType":"subdivision","heading":"Instrument 1998 No.9","content":"#### Instrument 1998 No.9\n\nI, BRUCE SCOTT, Minister for Veterans’ Affairs, make this\n\ndetermination under subsection 52B(3) of the Veterans’\n\nEntitlements Act 1986 .","sortOrder":0},{"sectionNumber":"Dated Seventeenth September 1998","sectionType":"part","heading":"Dated Seventeenth September 1998","content":"## Dated Seventeenth September 1998\n\nBruce Scott","sortOrder":1},{"sectionNumber":"Minister for Veterans’ Affairs","sectionType":"part","heading":"Minister for Veterans’ Affairs","content":"# Minister for Veterans’ Affairs\n\nPart 1 Introductory\n\n1 Name of determination\n\nThis determination is the Veterans' Entitlements\n\n(Pension Valuation Factor) Determination 1998.\n\n \n\n2 Commencement\n\nThis determination commences on 20 September 1998.\n\n3 Definitions\n\nIn this determination:\n\nAct means the Veterans' Entitlements Act 1986.\n\nrelevant year means the 12 month period for which the value\n\nof a person's income stream is being worked out for section 52B\n\nof the Act.\n\nNote The following terms used in this determination\n\nare defined in the Act:\n\n- defined benefit income stream.\n- governing rules.\n\n4 Purpose of determination\n\n(1) This determination sets out the pension valuation factor that applies\n\nto a person for a relevant year for section 52B of the Act.\n\n(2) The pension valuation factor is worked out in different ways, depending on whether the person's defined benefit income stream is\n\nindexed by a discretionary determination by trustees of the defined\n\nbenefit income stream fund or in a non-discretionary way in\n\naccordance with governing rules of the fund paying the person's\n\nincome stream.\n\n(3) This determination also sets out a way of treating different non-\n\ndiscretionary ways of indexing a person's defined benefit income\n\nstream so as to treat similar real levels of indexing in the same way\n\nregardless of the way the indexing is done.\n\n \n\nPart 2 Pension valuation factor and\n\nindex factor\n\n5 Pension valuation factor — indexation of income stream\n\nby not more than 8%\n\nIf the indexation factor for a person's defined benefit income stream for \na relevant year, as worked out in accordance with section 6 or 7, is not\n\nmore than 8%, the pension valuation factor that applies to the person\n\nfor that year is the pension valuation factor mentioned in the Schedule\n\nfor:\n\n(a) the age of the person on the person's next birthday following the beginning of the relevant year; and\n\n(b) the indexation factor for the person's income stream.\n\n6 Indexation factor — non-discretionary indexation of income\n\nstream\n\n(1) For section 5, if, under the governing rules of the fund paying a person's defined benefit income stream, the income stream is indexed in a non-discretionary way, the indexation factor for the income stream is worked out in accordance with this section.\n\n(2) If the income stream is indexed by reference to movements in salary, the indexation factor is taken to be a rate of at least 7% but less than 8%.\n\n(3) If the income stream is indexed by reference to movements in a price index published by the Australian Statistician, the indexation factor is taken to be a rate of at least 6% but less than 7%.\n\n(4) If the income stream is indexed in accordance with a rate set by the governing rules, the indexation factor is taken to be the range of rates set out in the Schedule that includes that rate.\n\n(5) For this section, an income stream is indexed in a non-discretionary way if it is indexed otherwise than as described in subsection 7(1).\n\n \n\n7 Indexation factor — discretionary indexation of\n\nincome stream\n\n(1) For section 5, if, under the governing rules of the fund paying a\n\nperson’s defined benefit income stream, the income stream is indexed\n\nby discretionary determination of trustees of the fund, the indexation\n\nfactor for the income stream is worked out in accordance with this\n\nsection.\n\n(2) Unless subsection (4) applies, the indexation factor is the average of the\n\nindexation factors determined for the person’s income stream for the 5\n\nyears immediately preceding the relevant year.\n\n(3) The average of the indexation factors is the sum of the indexation\n\nfactors determined for the person’s income stream, or for a class of\n\nincome streams that includes the person’s income stream, for the 5\n\nyears, divided by 5.\n\n(4) If the fund has been in existence, or making income stream payments to\n\nthe person, for less than 5 years, the indexation factor is taken to be a\n\nrate of at least 6% but less than 7%.\n\n8 Pension valuation factor — indexation of income stream\n\nby more than 8%\n\n(1) If the indexation factor for a person's defined benefit income stream\n\nfor a relevant year, as worked out in accordance with section 6 or 7,\n\nis more than 8%, the pension valuation factor that applies to the\n\nperson for that year is determined in accordance with this section.\n\n(2) The Minister must seek advice from the Australian Government Actuary of the appropriate pension valuation factor for the person for\n\nthe relevant year.\n\n(3) The Minister must determine the appropriate pension valuation factor\n\nthat applies to the person for the relevant year, having regard to the\n\nadvice given by the Australian Government Actuary.\n\n \n\n(4) Application may be made to the Administrative Appeals Tribunal for\n\nreview of a determination under subsection (3).\n\nNote For telling a person affected by a determination of the right of review, see section 27A of the Administrative Appeals Tribunal Act 1975 and the Code of Practice made under section 27B of that Act.\n\nSchedule Pension valuation factors\n\n(section 5)\n\n```html\n

Indexation factor for person’s income stream

Age of person on next birthday




8%

At least 7% but less than 8%

At least 6% but less than 7%

At least 5% but less than 6%

At least 4% but less than 5%

At least 3% but less than 4%

At least 2% but less than 3%

At least 1% but less than 2%


Less than 1%

Pension valuation factor

20 or less

34

27

22

19

16

14

12

11

10

21 to 25

32

26

22

18

16

14

12

11

10

26 to 30

30

25

21

18

16

14

12

11

10

31 to 35

28

23

20

17

15

13

12

11

10

36 to 40

26

22

19

16

14

13

11

10

9

41 to 45

23

20

17

15

14

12

11

10

9

46 to 50

20

18

16

14

13

11

10

9

9

51 to 55

18

16

14

13

12

11

10

9

8

56 to 60

15

14

12

11

10

10

9

8

8

61 to 65

12

11

11

10

9

8

8

7

7

66 to 70

10

9

9

8

8

7

7

6

6

71 to 75

8

7

7

7

6

6

6

5

5

76 to 80

6

6

5

5

5

5

4

4

4

81 to 85

4

4

4

4

4

4

3

3

3

86 to 90

3

3

3

3

3

3

3

2

2

91 to 95

2

2

2

2

2

2

2

2

2

96 to 100

2

2

2

2

2

2

2

2

2

101+

1

1

1

1

1

1

1

1

1

\n```","sortOrder":2}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":1678},"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"This is the original 1998 instrument. It remains focused on its original purpose of setting pension valuation factors for defined benefit income streams under section 52B of the Act, without apparent expansion into broader areas."},"complexity_factors":["Technical financial terminology requiring understanding of defined benefit superannuation and actuarial concepts","Cross-references to the Veterans' Entitlements Act 1986 for defined terms","Multi-layered conditional logic distinguishing between discretionary and non-discretionary indexation methods","Mathematical averaging calculation required for discretionary indexation (5-year average)","Extensive tabular lookup mechanism with age bands and percentage ranges"],"plain_english_summary":"This Determination sets how a veteran’s defined‑benefit superannuation pension is valued for veterans’ pension income and asset tests, converting an ongoing payment into a lump‑sum equivalent. It affects veterans with lifetime pensions from military or government funds, ensuring a consistent valuation for means testing.\n\nValuation uses a table keyed to the veteran’s age and the pension’s indexation approach (automatic or trustee‑discretionary). Very high indexation triggers actuarial advice, and ministerial decisions on such cases can be reviewed by the AAT."}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998","history":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998/history","analysis":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998/analysis","conflicts":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998/conflicts","importantCases":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998/important-cases","documents":"/api/acts/veterans-entitlements-pension-valuation-factor-determination-1998/documents"}}