29AMethod—restriction on lump sum amount that may be converted to pension

29A Method—restriction on lump sum amount that may be converted to pension

(1) This clause applies if: (a) the benefit in respect of the interest is payable as a lump sum; and (b) the governing rules of the eligible superannuation plan in which the interest is held restrict the amount of the lump sum that may be converted to a pension. (2) The method is: Start formula open bracket open bracket 1 minus Max subscript p% close bracket times PV subscript ls close bracket plus open bracket Max subscript p% times PV subscript p close bracket end formula where:

Maxp% is:

(a) the maximum possible amount of lump sum that may be converted to a pension expressed as a percentage of the amount of the lump sum that would be payable if the whole benefit were to be taken as a lump sum; or
(b) if the percentage calculated under paragraph (a) is greater than 50%—50%.

PVls is the present value of the lump sum that would apply if the whole benefit were to be taken as a lump sum, calculated using the method set out in Part 2 of this Schedule.

PVp is the present value of the pension that would apply if the whole benefit could, and were to, be taken as a pension, calculated using the method set out in Part 3 of this Schedule.