Minister for Veterans’ Affairs

Part 1 Introductory

1 Name of determination

This determination is the Veterans' Entitlements

(Pension Valuation Factor) Determination 1998.

2 Commencement

This determination commences on 20 September 1998.

3 Definitions

In this determination:

Act means the Veterans' Entitlements Act 1986.

relevant year means the 12 month period for which the value

of a person's income stream is being worked out for section 52B

of the Act.

Note The following terms used in this determination

are defined in the Act:

• defined benefit income stream.
• governing rules.

4 Purpose of determination

(1) This determination sets out the pension valuation factor that applies

to a person for a relevant year for section 52B of the Act.

(2) The pension valuation factor is worked out in different ways, depending on whether the person's defined benefit income stream is

indexed by a discretionary determination by trustees of the defined

benefit income stream fund or in a non-discretionary way in

accordance with governing rules of the fund paying the person's

income stream.

(3) This determination also sets out a way of treating different non-

discretionary ways of indexing a person's defined benefit income

stream so as to treat similar real levels of indexing in the same way

regardless of the way the indexing is done.

Part 2 Pension valuation factor and

index factor

5 Pension valuation factor — indexation of income stream

by not more than 8%

If the indexation factor for a person's defined benefit income stream for
a relevant year, as worked out in accordance with section 6 or 7, is not

more than 8%, the pension valuation factor that applies to the person

for that year is the pension valuation factor mentioned in the Schedule

for:

(a) the age of the person on the person's next birthday following the beginning of the relevant year; and

(b) the indexation factor for the person's income stream.

6 Indexation factor — non-discretionary indexation of income

stream

(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.