The minimum and maximum payments from an allocated pension is calculated as:

The current balance and age is calculated on 1 July in the financial year in which payments are made (or commencement date in first year). Result is rounded to nearest $10. No minimum pension payment is required in first financial year if contract starts between 1 April and 30 June. Also in first year minimum and maximum must be adjusted for the proportion of the year for which the pension is payable. The proportion is determined in days in the financial year that include and follow the commencement date.

The pension valuation factors are:

Age of Beneficiary	Maximum Pension Valuation Factor	Minimum Pension Valuation Factor
20 or less	10	28.6
21	10	28.5
22	10	28.3
23	10	28.1
24	10	28.0
25	10	27.8
26	10	27.6
27	10	27.5
28	10	27.3
29	10	27.1
30	10	26.9
31	10	26.7
32	10	26.5
33	10	26.3
34	10	26.0
35	10	25.8
36	10	25.6
37	10	25.3
38	10	25.1
39	10	24.8
40	10	24.6
41	10	24.3
42	10	24.0
43	10	23.7
44	10	23.4
45	10	23.1
46	10	22.8
47	10	22.5
48	10	22.2
49	10	21.9
50	9.9	21.5
51	9.9	21.2
52	9.8	20.9
53	9.7	20.5
54	9.7	20.1
55	9.6	19.8
56	9.5	19.4
57	9.4	19.0
58	9.3	18.6
59	9.1	18.2
60	9.0	17.8
61	8.9	17.4
62	8.7	17.0
63	8.5	16.6
64	8.3	16.2
65	8.1	15.7
66	7.9	15.3
67	7.6	14.9
68	7.3	14.4
69	7.0	14.0
70	6.6	13.5
71	6.2	13.1
72	5.8	12.6
73	5.4	12.2
74	4.8	11.7
75	4.3	11.3
76	3.7	10.8
77	3.0	10.4
78	2.2	10.0
79	1.4	9.5
80	0	9.1
81	0	8.7
82	0	8.3
83	0	7.9
84	0	7.5
85	0	7.1
86	0	6.8
87	0	6.4
88	0	6.1
89	0	5.8
90	0	5.5
91	0	5.3
92	0	5.0
93	0	4.8
94	0	4.6
95	0	4.4
96	0	4.2
97	0	4.0
98	0	3.8
99	0	3.7
100 or more	0	3.5

An example from the Superannuation Industry (Supervision) Regulation, 1994 is:

Iva Fortune, who turns 60 on 5 September 1994, invests $100,000 in an allocated pension fund on 1 October 1994. The date of the first payment to Ms Fortune is 1 January 1995.

Assume a fund earning rate of 7%.

1994/95: The maximum and minimum payments for 1994/95 are based on:

1. the account balance on the day of purchase; and
2. the beneficiary's age of 60 on the day of purchase.

Assume that total payments to Ms Fortune at 30 June 1995 are $6,000.

1995/96: The maximum and minimum payments for the year 1995/96 are based on:

1. the account balance on 1 July 1995 which is $99,145 (residue $94,000 + interest of $5,145); and
2. the beneficiary's age of 60 on the 1 July 1995.

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