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This definition applies to all payments.
A pension valuation factor is a multiple applied to the gross annual payment received from an asset tested defined benefit income stream to determine the asset value of that income stream (1.1.I.70). The pension valuation factor is based on the person's life expectancy and the level of indexation of payments that applies to the relevant income stream.
Pension valuation factors are contained in tables which have been determined by the Minister under a disallowable instrument.
Act reference: Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 1998
Policy reference: SS Guide 4.9.5.50 Pension Valuation Factors for Defined Benefit Income Streams
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Last reviewed: 7 December 2009
