Limited Pension Rules

The superannuation fund rules must ensure the following [SIS regulation 1.06(6)]:

1. The pension commenced on or after 1 July 1994.

2. The increase in annual pension does not exceed the average rate of increase of the CPI in the preceding 3 years.

3. If the pension can be commuted[1] the conversion to a lump sum is limited by applying the appropriate pension valuation factor under SIS Schedule 1B to the pension (taking the commencement day as the day on which the commutation occurs).