Can somebody please give me an idea of the relationship of the value shown on a 30 June statement for a PSS super interest and the value that is given by a valuer for Family Law purposes?
An average ballpark percentage increase over the statement value is all I am looking for.
Hi Ted
Apologies for my late reply. I have just signed up to LawAnswers and seen your post. The answer to your question is complicated and depends on a range of factors that include your age, when you joined the scheme, the size and nature of the various components that make up your total benefit, and whether you are in the growth phase (e.g. a contributor or preserved benefit member) or payment phase (e.g. receiving a pension from the scheme).
The Family Law Value for the Public Sector Superannuation Scheme (PSS) is determined using factors and methodology developed by actuaries and approved by the Commonwealth Attorney-General in the
Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003. Essentially, the methods and factors used to calculate the Family Law Value create a present value for the Commonwealth's promise to pay:
(a) for contributing or preserved benefit members in the growth phase, a future defined benefit when you reach a certain age, or
(b) for pension recipients in the payment phase, a lifetime income stream to the original recipient and a reversionary pension to any eligible spouse.
Based on my experience, the Family Law Values will often be lower than the annual member statement for PSS contributors aged less than around 50-53 years of age. The general rule is the younger you are the more likely your Family Law Value (FLV) will be lower than the amount specified on the member statement. Once a member reaches around 51 or 52 years of age, the Family Law Value is likely to exceed the amount specified on the member statement. But remember, every case will be different based on the member's individual circumstances.
The reverse tends to be true for the Family Law Value for PSS pensioners in the payment phase and this is because the older the person gets, the shorter the period of time that the pension will be paid into the future.
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