15BUDElection by widow to be paid lump sum instead of pension under sec 15BM

15BUD Election by widow to be paid lump sum instead of pension under sec 15BM

15BUD Election by widow to be paid lump sum instead of pension under sec 15BM

Subject to sections 15BM (4) and 15BUF, a widow entitled to a pension under section 15BM (3) may elect to be paid, instead of that pension or some part of that pension, a lump sum calculated in accordance with the following formula—

where—

L represents the lump sum payable.

C represents the former contributor’s notional final salary.

A represents such number of the former contributor’s accrued pension points as bears to the total number of those points the same proportion as the amount of pension instead of which a lump sum is to be paid bears to the amount of pension that would be payable under section 15BM (3) if no election had been made.

D represents—

(a) where the former contributor was qualified for full additional benefits—such number of his notional pension points as bears to the total number of those points the same proportion as is used in assigning a value to A,

(b) where the former contributor was qualified for partial, but not full, additional benefits—such number of his notional pension points as bears to one-half the total number of those points the same proportion as is used in assigning a value to A, or

(c) where the former contributor was not qualified for additional benefits—nil.

ss 15BUA–15BUD: Ins 1980 No 191, Sch 3 (10).