Commutation

Commutation refers to a lump sum payment of part of your future retirement pay. If you retire and are entitled to retirement pay, you can elect to commute (ie, exchange) part of your retirement pay for a lump sum amount.

You also elect to commute a portion of your benefit if you:

Since 2002, the maximum commutation factor has been five times your annual rate of retirement pay on exit; it progressively increased from four in 1982 to five in 2002.

Your pension is permanently reduced even if you reach or exceed your life expectancy.

Amounts and pay increases

You can commute less than your maximum entitlement – but please keep in mind:

  • if you commute between four and five times your retirement pay, your total remaining retirement pay (your pension) will be CPI-indexed
  • if you do not elect to commute, or you commute less than four times your retirement pay, CPI indexation will only apply to your notional retirement pay, payable had you commuted four times your retirement pay.

When must I make my decision?

Please do so between three months before and six months after (for tax purposes) either your retirement or the date when your deferred benefit must be paid to you.

Please use our Application for DFRDB retirement pay, commutation and superannuation productivity (including MilitarySuper ancillary benefit) form [PDF 1 MB]. 

When will my commutation take effect?

It will take effect when we receive your completed form – or the later of the date:

    • following retirement, or
    • when a deferred benefit becomes payable. 

Life expectancy factors

AgeMale FactorFemale Factor
30 41.12 46.49
31 40.18 45.53
32 39.25 44.57
33 38.31 43.61
34 37.38 42.65
35 36.45 41.70
36 35.51 40.75
37 34.59 39.81
38 33.67 38.86 
39 32.75  37.92 
40 31.84 36.99 
41 30.93  36.06 
42 30.03  35.13 
43 29.14  34.21 
44 28.25  33.29 
45 27.38  32.38 
46 26.51  31.48 
47 25.65  30.58 
48 24.80  29.69 
49 23.96  28.80 
50 23.13  27.92 
51 22.31  27.05 
52 21.51  26.18 
53 20.72  25.32 
54 19.94  24.47 
55 19.18  23.63 
56 18.43  22.79 
57 17.70  21.96 
58 16.99  21.13 
59 16.29  20.32 
60 15.60  19.51 
61 14.94  18.72 
62 14.29  17.94 
63 13.67  17.17 
64 13.06  16.42 
65 12.47  15.68