15AOElection by policy holders to come under this Part

15AO Election by policy holders to come under this Part

15AO Election by policy holders to come under this Part

(1) Within the period commencing on and including the date of commencement of this Part and ending on and including 30 September 1981, a permanent servant who is the holder of a current insurance policy may, in a form approved by the board—

(a) apply to surrender or to have cancelled all current insurance policies in his name and direct payment to the board of any money payable in respect of the surrender or cancellation,

(b) if he has any amount standing to his credit in the Provident Fund, apply to have that amount transferred to the Pension Fund, and

(c) elect to come under the provisions of this Part.

(2) Subsection (1) does not apply to a permanent servant who has at any time been exempted from the obligation to effect insurance under section 4 by virtue of section 7 (1) (c), unless he has subsequently been informed that an insurance company will accept the risk of that insurance as mentioned in section 7A (1).

(3) Where a person referred to in subsection (1) becomes a contributor, the board, upon his becoming a contributor, shall—

(a) cause the insurance policies to be surrendered or cancelled,

(b) pay the proceeds of the surrender or cancellation to the Pension Fund,

(c) transfer any amount standing to his credit in the Provident Fund to the Pension Fund, and

(d) of the amounts paid or transferred under paragraph (b) or (c)—

(i) credit 50 per centum to his servant’s account in the Pension Fund, and

(ii) credit 50 per centum to the general reserve (if he is in the service of a general employer) or to the special reserve (if he is in the service of a special employer).

(4) A person who makes an application and election under subsection (1) becomes a contributor on the first day of a month to be determined by the board, and shall upon that day be qualified for full additional benefits.

s 15AO: Ins 1977 No 46, Sch 1 (4). Am 1979 No 7, Sch 1 (1); 1980 No 191, Sch 6 (1).