Anti Detriment Calculator

21 Dec 2016

Written by

David Busoli, Principal

An increased lump sum death benefit, otherwise known as an anti detriment payment, may be made to a spouse, ex spouse (via the estate) or child of any age. The purpose of the payment is to compensate for the effect of contributions tax (the detriment) on the lump sum death benefit paid. There are two calculation methods. The first is the accounting method and is based on the actual reduction in the lump sum benefit paid when the fund rate of return is applied to the contributions tax deducted. If the necessary records are available this is the method which must be used. This calculator uses the formula to be applied for the second method.

For a more detailed discussion of anti detriment payments please click here.

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