Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No. 3) (Cth)
Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No. 3)
Family Law (Superannuation) Regulations 2001
I, ROBERT McCLELLAND, Attorney‑General, make this Approval under regulation 38 of the Family Law (Superannuation) Regulations 2001.
Dated 28 April 2008
ROBERT McCLELLAND
Attorney‑General
Name of Approval
This Approval is the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2008 (No. 3).
Commencement
This Approval commences on the day after it is registered.
Amendment of Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003
Schedule 1 amends the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003.
Schedule 1 Amendment
(section 3)
[1] Schedule 3, after Part 6
insert
Part 7 Victorian pension schemes — Governor, Judges, Masters, Chief Magistrate, Solicitor‑General, Director of Public Prosecutions and Chief Crown Prosecutor
Division 7.1 Definitions
Definitions
(1) In this Part:
Chief Crown Prosecutor means a person appointed as Chief Crown Prosecutor under Part 3 of the Public Prosecutions Act 1994 (Vic).
Chief Judge means a person appointed as Chief Judge of the County Court under subsection 8 (1) of the County Court Act.
Chief Magistrate means a person appointed to be Chief Magistrate of the Magistrates’ Court of Victoria under subsection 7 (2) of the Magistrates’ Court Act 1989 (Vic).
Constitution Act means the Constitution Act 1975 (Vic).
County Court means the court established by section 4 of the County Court Act.
County Court Act means the County Court Act 1958 (Vic).
Director of Public Prosecutions means a person appointed as Director of Public Prosecutions under section 87AB of the Constitution Act.
eligible office means the office mentioned in column 3 of an item in the table in clause 2 that is held by a person.
Governor means a person appointed as Governor of the State of Victoria under section 6 of the Constitution Act.
judge of the County Court means a person appointed as a judge of the County Court under subsection 8 (1) of the County Court Act.
Judge of the Supreme Court means a person appointed as a Judge of the Supreme Court under subsection 75B (2) of the Constitution Act.
master of the County Court means a person who is appointed to be a master of the County Court under section 17A of the County Court Act.
Master of the Supreme Court means a Master of the Supreme Court referred to in section 75 of the Constitution Act.
retirement age, in relation to a person, means the age worked out under clause 6.
Solicitor‑General means a person appointed to the office of Solicitor‑General under subsection 4 (1) of the Attorney‑General and Solicitor‑General Act 1972 (Vic).
Supreme Court means the Supreme Court of the State of Victoria.
Supreme Court Act means the Supreme Court Act 1986 (Vic).
(2) A reference in this Part to the requirements of Division 2.2 of the Regulations being satisfied does not include a reference to the requirements of that Division being satisfied by making a payment of the kind mentioned in regulation 14H of the Regulations.
Division 7.2 Interests in the growth phase
Interests held in Victorian pension schemes by the Governor, Judges, Masters, Chief Magistrate, Solicitor‑General, Director of Public Prosecutions and Chief Crown Prosecutor
For an interest:
(a) that is in the growth phase in a scheme mentioned in column 2 of an item in the following table; and
(b) that is held by a person who holds an office mentioned in column 3 of that item;
the method set out in clause 3 is approved for section 4 of this instrument.
| Item | Scheme | Eligible office |
| 1 | Scheme constituted by sections 7A to 7J of the Constitution Act | Governor |
| 2 | Scheme constituted by sections 83 to 83AI of the Constitution Act | Judge of the Supreme Court |
| 3 | Scheme constituted by sections 14 to 14AI of the County Court Act | Chief Judge or a judge of the County Court |
| 4 | Scheme constituted by sections 104A to 104J of the Supreme Court Act | Master of the Supreme Court |
| 5 | Scheme constituted by sections 17B to 17K of the County Court Act | master of the County Court |
| 6 | Scheme constituted by section 10A of the Magistrates’ Court Act 1989 (Vic) | Chief Magistrate |
| 7 | Scheme constituted by section 6 of the Attorney‑ General and Solicitor‑General Act 1972 (Vic) | Solicitor‑General |
| 8 | Scheme constituted by section 87AF of the Constitution Act | Director of Public Prosecutions |
| 9 | Scheme constituted by section 18 of the Public Prosecutions Act 1994 (Vic) | Chief Crown Prosecutor |
Approved method
For clause 2, the method is:
where:
VN is the lump sum value of the person’s accrued pension entitlement at the person’s retirement age calculated in accordance with the formula:
where:
B has the meaning given by clause 4.
Pra is the pension valuation factor mentioned in Table 1 of Division 7.3 that applies, given:
(a) the person’s gender; and
(b) the person’s retirement age.
Rsa is the reversion valuation factor mentioned in Table 2 of Division 7.3 that applies, given:
(a) the person’s gender; and
(b) the person’s age in completed years at the relevant date.
Fy+m has the meaning given by clause 5.
Definition of B
(1) In clause 3:
B is calculated in accordance with the formula:
where:
ABM is the person’s accrued benefit multiple at the relevant date, being the lesser of the following amounts:
(a)
(b)
where:
FLMR is the reduction factor under clause 7.
S is the person’s period of service in the person’s eligible office in years, including any fraction of a year, at the relevant date.
QS is the person’s qualifying service under clause 8.
Sal. is:
(a) for a person whose eligible office is Governor — the annual salary payable to the Chief Justice of the Supreme Court under subsection 82 (1) of the Constitution Act at the relevant date; and
(b) for a person whose eligible office is Judge of the Supreme Court:
(i) if the person is the Chief Justice of the Supreme Court — the annual salary payable to the person under subsection 82 (1) of the Constitution Act at the relevant date; or
(ii) if the person is the President of the Court of Appeal — the annual salary payable to the person under subsection 82 (1A) of that Act at the relevant date; or
(iii) if the person is a Judge of Appeal — the annual salary payable to the person under subsection 82 (1B) of that Act at the relevant date; or
(iv) in any other case — the annual salary payable to a Judge of the Supreme Court under subsection 82 (2) of that Act at the relevant date; and
(c) for a person whose eligible office is Chief Judge of the County Court — the annual salary payable to the person under subsection 10 (1) of the County Court Act at the relevant date; and
(d) for a person whose eligible office is judge of the County Court, Chief Magistrate, or Chief Crown Prosecutor — the annual salary payable to a judge of the County Court under subsection 10 (2) of the County Court Act at the relevant date; and
(e) for a person whose eligible office is Master of the Supreme Court — the annual salary payable to the person under subsection 83A (1) of the Constitution Act at the relevant date; and
(f) for a person whose eligible office is master of the County Court — the annual salary payable to the person under subsection 17AA (1) of the County Court Act at the relevant date; and
(g) for a person whose eligible office is Solicitor‑General or Director of Public Prosecutions — the annual salary payable to a Judge of the Supreme Court under subsection 82 (2) of the Constitution Act at the relevant date.
(2) For the definition of S in paragraph (b) of the definition of ABM in subclause (1):
fraction of a year means the quotient of:
(a) the number of days, including the relevant date, that are not included in the number of complete years of service; and
(b) whichever of subparagraphs (i), (ii) or (iii) is applicable:
(i) if the length of the person’s period of service at the relevant date is less than 1 complete year and the date ‘29 February’ occurs in the period of 12 months commencing on the date on which the person first commenced service — 366; or
(ii) if the length of the person’s period of service at the relevant date is more than 1 complete year and the date ‘29 February’ occurs in the period of 12 months commencing on the person’s most recent anniversary date preceding the relevant date — 366; or
(iii) in any other case — 365.
(3) For the definition of fraction of a year in subclause (2), if a person’s anniversary date is ‘29 February’, the person’s most recent anniversary date is taken to be ‘1 March’ in a year that is not a leap year.
(4) In this clause:
anniversary date means the anniversary of the date on which a person first commenced service.
Definition of Fy+m
In clause 3:
Fy+m is the amount calculated in accordance with the formula:
where:
Fy is the lump sum valuation factor mentioned in Table 3 of Division 7.3 that is applicable given the number of complete years in the period commencing on the relevant date and ending on the date when the person will reach the person’s retirement age.
m is the number of complete months of the person’s age that are not included in the person’s age in completed years at the relevant date.
Fy+1 is the lump sum valuation factor mentioned in Table 3 of Division 7.3 that would be applicable to the person if the number of complete years in the period commencing on the relevant date and ending on the date when the person will reach the person’s retirement age were 1 year more than it is.
Meaning of retirement age
In this Part:
retirement age, in relation to a person, means:
(a) for a person whose eligible office is Governor:
(i) if the relevant date is less than 5 years after the person first assumed office as Governor — the person’s age at the end of the period that the person has agreed to act as Governor; or
(ii) in any other case — the person’s age at the relevant date; and
(b) for a person whose eligible office is Judge of the Supreme Court and to whom paragraph 77 (4) (a) or (d) of the Constitution Act applies — 72; and
(c) for a person whose eligible office is Chief Judge or judge of the County Court and to whom subsection 14 (1) (a) of the County Court Act applies — 72; and
(d) for a person whose eligible office is Master of the Supreme Court and who was appointed to that office before the commencement of subsection 6 (3) of the Courts Amendment Act 1986 (Vic) — 72; and
(e) for a person whose eligible office is master of the County Court and to whom subsection 17A (5A) of the County Court Act applies — 72; and
(f) for a person whose eligible office is the Solicitor‑General, the Director of Public Prosecutions or the Chief Crown Prosecutor — the later of the age of the person at the time of the expiry of his or her term of office as Solicitor‑General, Director of Public Prosecutions or Chief Crown Prosecutor and 65; and
(g) in any other case — 70.
Reduction factor
(1) Reduction factor is:
(a) if the requirements of Division 2.2 of the Regulations have been satisfied in respect of the entitlement of only 1 spouse of the person, being an entitlement arising under a particular superannuation agreement, flag lifting agreement or splitting order that applies to the interest — the amount calculated in accordance with the formula set out in subclause (2); or
(b) if the requirements of Division 2.2 of the Regulations have been satisfied in respect of the entitlements of 2 or more spouses of the person, being entitlements each arising under a superannuation agreement, flag lifting agreement or splitting order that applies to the interest — the sum of the amounts calculated in accordance with the formula set out in subclause (2) in respect of each entitlement; or
(c) in any other case — 0.
(2) For paragraphs (1) (a) and (b), each amount is calculated in accordance with the formula:
where:
NMProp is the quotient of:
(a) the value of the spouse’s entitlement under the agreement or order immediately before the time when the requirements of Division 2.2 of the Regulations were satisfied; and
(b) the gross value of the person’s interest, immediately before those requirements were satisfied, determined in accordance with the method set out in clause 3.
ABMs is the person’s accrued benefit multiple calculated in accordance with the definition of ABM in clause 4 as if the references to ‘at the relevant date’ in that definition are references to ‘immediately before the requirements of Division 2.2 of the Regulations were satisfied in respect of the entitlement of the spouse of the person under the superannuation agreement, flag lifting agreement or splitting order’.
Qualifying service
(1) Qualifying service, in relation to a person, is:
(a) for a person whose eligible office is Governor — 5; and
(b) for a person (other than a person to whom paragraph (a) applies) who first commenced service in the person’s eligible office more than 20 years before the age at which the person is entitled to be paid a pension in respect of that office under clause 9 — 20; and
(c) for a person (other than a person to whom paragraph (a) applies) who first commenced service in the person’s eligible office at least 10 years, but no more than 20 years, before the age at which the person is entitled to be paid a pension in respect of that office under clause 9 — the applicable age in years in clause 9 less the person’s age in years, including any fraction of a year, when the person first commenced service in that office; and
(d) in any other case — 10.
(2) For the definition of qualifying service in subclause (1), the date when a person first commenced service in the person’s eligible office is taken to be the date when the person first commenced service in a prior office if:
(a) for a person whose eligible office is Judge of the Supreme Court or Master of the Supreme Court — the person’s service in the prior office counts as service in the eligible office under subsection 83 (6) of the Constitution Act; or
(b) for a person whose eligible office is judge of the County Court or master of the County Court — the person’s service in the prior office counts as service in the eligible office under subsection 14 (5) of the County Court Act.
(3) For the definition of qualifying service in subclause (1):
fraction of a year means the quotient of:
(a) the number of days that were not included in the person’s age at the date the person first commenced service in the person’s eligible office; and
(b) whichever of (i) or (ii) is applicable:
(i) if the date ‘29 February’ occurred in the period of 12 months commencing on the person’s most recent birthday before the person first commenced service in the person’s eligible office — 366; or
(ii) in any other case — 365.
(4) For the definition of fraction of a year in subclause (3), if a person’s birthday is ‘29 February’, the person’s most recent birthday is taken to be ‘1 March’ in a year that is not a leap year.
Age at which person entitled to pension
(1) For the definition of qualifying service in clause 8, the age at which a person is entitled, on retirement, to be paid a pension in respect of an eligible office is:
(a) for a person whose eligible office is Governor — the age of the person 5 years after first assuming office as Governor; or
(b) for a person to whom subclause (2) applies — 60; or
(c) in any other case — 65.
(2) This subclause applies to the following persons:
(a) a person whose eligible office is Judge of the Supreme Court and to whom subparagraph 83 (1) (a) (ii) or (iii) of the Constitution Act applies;
(b) a person whose eligible office is Chief Judge or judge of the County Court, and to whom subparagraph 14 (2) (a) (ii) or (iii) of the County Court Act applies;
(c) a person whose eligible office is Master of the Supreme Court and to whom subparagraph 104A (1) (a) (ii) of the Supreme Court Act applies;
(d) a person whose eligible office is master of the County Court and to whom subparagraph 17B (1) (a) (ii) of the County Court Act applies;
(e) a person whose eligible office is Chief Magistrate and to whom subparagraph 14 (2) (a) (ii) or (iii) of the County Court Act applies;
(f) a person whose eligible office is Solicitor‑General and to whom subparagraph 83 (1) (a) (ii) or (iii) of the Constitution Act applies;
(g) a person whose eligible office is Director of Public Prosecutions and to whom subparagraph 83 (1) (a) (ii) or (iii) of the Constitution Act applies;
(h) a person whose eligible office is Chief Crown Prosecutor and to whom subparagraph 14 (2) (a) (ii) or (iii) of the County Court Act applies.
Division 7.3 Factors
Table 1 Pension valuation factors
Retirement age
Males
Females
30 28.4648 30.0138 31 28.1671 29.7352 32 27.8625 29.4505 33 27.5509 29.1598 34 27.2318 28.8627 35 26.9057 28.5590 36 26.5721 28.2486 37 26.2311 27.9314 38 25.8824 27.6073 39 25.5262 27.2764 40 25.1622 26.9383 41 24.7903 26.5933 42 24.4106 26.2411 43 24.0231 25.8820 44 23.6279 25.5159 45 23.2249 25.1430 46 22.8144 24.7632 47 22.3965 24.3764 48 21.9715 23.9830 49 21.5398 23.5828 50 21.1015 23.1761 51 20.6571 22.7628 52 20.2070 22.3430 53 19.7515 21.9170 54 19.2910 21.4847 55 18.8258 21.0463 56 18.3565 20.6017 57 17.8836 20.1513 58 17.4074 19.6949 59 16.9288 19.2325 60 16.4483 18.7641 61 15.9668 18.2900 62 15.4849 17.8104 63 15.0034 17.3256 64 14.5232 16.8361 65 14.0448 16.3424 66 13.5691 15.8449 67 13.0966 15.3442 68 12.6279 14.8409 69 12.1636 14.3356 70 11.7039 13.8288 71 11.2490 13.3211 72 10.7986 12.8129 73 10.3529 12.3046 74 9.9114 11.7973 75 9.4751 11.2925 76 9.0457 10.7919 77 8.6255 10.2979 78 8.2168 9.8127 79 7.8213 9.3386 80 7.4407 8.8770 81 7.0760 8.4279 82 6.7283 7.9910 83 6.3983 7.5664 84 6.0869 7.1553 85 5.7945 6.7594
Table 2 Reversion valuation factors
Person’s age at relevant date (in completed years)
Males
Females
0 to 40 2.437 1.053 41 2.356 0.990 42 2.275 0.927 43 2.194 0.863 44 2.112 0.800 45 2.031 0.737 46 1.950 0.674 47 1.869 0.611 48 1.787 0.548 49 1.706 0.484 50 1.625 0.421 51 1.381 0.358 52 1.137 0.295 53 0.894 0.232 54 0.650 0.168 55 or over 0.406 0.105
Table 3 Lump sum valuation factors
Period of time until retirement age
(in completed years)Factor
44 0.3411 43 0.3497 42 0.3586 41 0.3677 40 0.3771 39 0.3869 38 0.3971 37 0.4077 36 0.4186 35 0.4301 34 0.4419 33 0.4542 32 0.4669 31 0.4800 30 0.4935 29 0.5065 28 0.5197 27 0.5333 26 0.5471 25 0.5612 24 0.5755 23 0.5903 22 0.6053 21 0.6207 20 0.6364 19 0.6525 18 0.6689 17 0.6857 16 0.7029 15 0.7204 14 0.7384 13 0.7567 12 0.7755 11 0.7947 10 0.8143 9 0.8345 8 0.8551 7 0.8763 6 0.8981 5 0.9206 4 0.9316 3 0.9446 2 0.9599 1 0.9782 0 1.0000
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