Which version of the Family Law (Superannuation) Regulations applies to a current valuation?

The Family Law (Superannuation) Regulations 2025 replaced the 2001 Regulations and apply to valuations on or after their commencement. The 2025 Regulations carry forward the same conceptual framework — Schedule-prescribed methods and factor tables for accumulation, defined benefit and pension interests — and incorporate the Attorney-General's approved scheme-specific methods through the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025.

What does 'gross value of the superannuation interest' mean under Reg. 2025?

It is the present value of the member's accrued benefit at the relevant date, calculated using the prescribed (or approved scheme-specific) method, before any tax or surcharge adjustment. It is not the resignation benefit, not the withdrawal benefit, and not the notional account balance shown on the member statement. Section 90XT/XU of the Family Law Act splits the gross interest, so this is the figure that goes into the property pool.

Why does the actuary need an accrued benefit multiple to four or five decimal places?

The base method scales the member's final average salary by the accrued benefit multiple (ABM). For a long-service public servant the ABM might be 7.534210; rounding to two decimals can shift a PSS or CSS valuation by tens of thousands of dollars. The Form 6 Superannuation Information Form returns the ABM to the precision the trustee's administration system holds.

What discount rate is used?

The discount rate is prescribed in the Regulations and updated periodically. For most lump-sum DB interests valued under the base method, the 2025 Regulations apply a real discount rate aligned with long-dated Commonwealth Government Securities, with an inflation overlay where the benefit is salary-linked. Pensions in payment are discounted at the prescribed pension valuation rate set out in the relevant Schedule.

Why do PSS, CSS, MSBS and DFRDB use approved scheme-specific methods rather than the base method?

Each of these schemes has design features (employer-financed components, pension conversion factors, productivity contributions, indexation arrangements) that the trustee's actuary has demonstrated are not adequately captured by the base method. The Attorney-General has therefore approved a scheme-specific method, which must be used in preference to the base method for that scheme. The current approved methods for those funds are administered by the Commonwealth Superannuation Corporation.

Is there ever a case to depart from the prescribed method?

Departures are rare and only available where the parties agree (or the court directs) that the prescribed value materially misstates the true value of the interest in the matter — for example where a unique commutation election is in prospect that the prescribed method does not reflect. Any departure must be transparently reasoned in the report.

Methodology deep-dive

The Reg. 2025 actuarial method for defined benefit interests — inputs, steps and outputs.

A line-by-line walkthrough of the Family Law (Superannuation) Regulations 2025 method used to value PSS, CSS, MSBS, DFRDB, State Super and judges' pension interests for Australian family law property settlements.

01 · Statute

Legislative framework

Defined benefit superannuation interests are valued for family law purposes under section 90XT(1)(b) of the Family Law Act 1975, which requires the gross value of the interest to be determined in accordance with regulations. The current instrument is the Family Law (Superannuation) Regulations 2025, which replaced the 2001 Regulations. The Regulations:

prescribe a base method for each class of interest (accumulation, defined benefit lump sum, defined benefit pension, partially-vested interest);
provide the factor tables — discount factors, pension valuation factors, mortality assumptions and conversion factors;
incorporate, by reference, the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025 which sets out scheme-specific methods approved by the Attorney-General.

Where an approved scheme-specific method exists, it must be used in preference to the base method. Most large public-sector schemes (PSS, CSS, MSBS, DFRDB, State Super) are covered by an approved method.

02 · Inputs

Inputs the actuary requires

The prescribed method cannot be applied from a member statement. The required inputs are returned by the trustee on the Superannuation Information Form in response to a Form 6 request (now usually lodged through the Commonwealth Courts Portal). The minimum input set is:

Input	Why it matters
Accrued benefit multiple (ABM)	Scales the salary base — small precision changes move the value by thousands.
Final average salary (scheme-defined)	Each scheme has its own averaging window (e.g. PSS, State Super 3-year FAS).
Service start, exit and break dates	Drive eligible service used in the ABM and the projection horizon.
Contribution category and rate	Determines the member-financed component and accrual rate.
Member contribution account balance	Included separately in the gross value at the member-account valuation.
Member's exact age (years + completed months)	Selects the discount and mortality factors from the table.
Pension election / commutation status	Determines whether lump-sum or pension valuation factors apply.
Indexation and reversionary terms (pensions)	Drive the present value of future income and spouse continuation.

03 · Base method

The base method — step by step

For a typical lump-sum-style DB interest where no approved scheme-specific method applies, the Regulations prescribe a present-value calculation of the form:

Gross Value  =  ABM × FAS × Discount Factor (age, term)
                + Member Contribution Account
                + Productivity / SG Component (if separately funded)

1
Project the accrued benefit.
ABM × FAS gives the lump-sum benefit the member would receive on exit at the valuation date assumptions.
2
Apply the discount factor.
The Schedule's discount factor table is indexed by member age in years and completed months, reflecting the time to expected payment and the prescribed discount rate.
3
Add the member contribution account.
Member-financed contributions (and crediting rate) are valued at face and added to the discounted employer-financed component.
4
Add separately-funded components.
Where productivity, post-1995 employer or SG accumulation components are tracked separately, they are added at their member-account values.
5
Round and cross-check.
Where the trustee's own family-law quote is available, any difference must be explained by inputs (date, salary, ABM precision) — not method.

04 · Scheme-specific

Approved scheme-specific methods

Where a scheme is listed in the Family Law (Superannuation) (Methods and Factors) Approval 2025, the approved method is mandatory. The most commonly encountered approved methods are:

PSS

Member's funded benefit plus an employer-financed unfunded liability valuation, applying a CSC-published valuation factor by age.

CSS

Capitalises the indexed pension entitlement plus the productivity component using the CSC pension valuation factor.

MSBS

Splits the interest into a member benefit (accumulation, valued at account balance) and an employer benefit (defined benefit) valued under CSC's approved method.

DFRDB

Present value of the indexed lifetime pension using the prescribed mortality and pension valuation factors.

State Super (NSW SSS / SASS / SANCS)

Equivalent state public-sector schemes — each with a trustee-published method and factor set.

Judges' & defined-benefit pensions

Capitalised under the relevant pension valuation factor and indexation overlay.

The actuary must hold the current factor set published by the trustee at the valuation date — outdated factors will produce a value that is technically incorrect even if the arithmetic is right.

05 · Pensions

Pensions in payment

Where the member is already drawing a pension (CSS, DFRDB, MSBS, judges', State Super), the gross value is the present value of the future pension stream:

Gross Value  =  Annual Pension × Pension Valuation Factor
                × Reversionary Loading
                × Indexation Adjustment

The pension valuation factor is a life-contingent annuity factor at the prescribed discount rate, indexed by exact age and (where applicable) sex of the member. The reversionary loading reflects the actuarial cost of the spouse-continuation entitlement (e.g. 67% of the member pension on the member's death). The indexation adjustment converts a real (CPI-linked) factor to a nominal one where the underlying pension is fully or partially indexed. These valuations are routinely in excess of A$1 million for a 60-year-old drawing a moderate indexed pension.

06 · Outputs

Outputs — what the report must contain

A defensible Reg. 2025 valuation report contains:

Gross value
Of the interest at the nominated valuation date, in dollars.
Method
Base method or approved scheme-specific method, with citation.
Inputs
Every input as returned on the Superannuation Information Form, reproduced in full.
Factor set
Specific discount, mortality and pension valuation factors used — identified by source and date.
Arithmetic
Sufficient working for the calculation to be reproduced by a second actuary.
Sensitivities
Alternative valuation dates and salary inputs requested by the parties.
Signed opinion
Under the FCFCOA Expert Witness Code of Conduct, where the report is for use in proceedings.

The output is a number with a paper trail. If any of the inputs, factors or arithmetic is missing, the report cannot be tested — and a number that cannot be tested is not evidence.