15CJPayments to employers

15CJ Payments to employers

15CJ Payments to employers

(1) Where employer-financed benefits otherwise payable to a person upon a transferee ceasing to be a contributor are reduced by the operation of section 15CF (3) or calculated by applying section 15CF (4), the board shall pay to the employer who employed the transferee immediately before he ceased to be a contributor—

(a) in the case of a reduction by the operation of section 15CF (3)—an amount equal to the amount of the reduction, or

(b) in the case of benefits calculated by applying section 15CF (4)—an amount calculated as provided in subsection (2).

(2) The amount referred to in subsection (1) (b) shall be calculated in accordance with the following formula—

where—

Q represents the amount payable to the employer,

V represents the transferee’s final average salary, final salary or notional final salary, whichever salary is applicable in calculating the employer-financed benefit, subject to the applicable salary being—

(a) where the benefit is partly a pension and partly a lump sum payable under section 15BV but does not include another lump sum payable under Division 5A—the salary applied in calculating the lump sum payable, or

(b) where the benefit is partly a lump sum payable under section 15BV and partly another lump sum payable under Division 5A whether with or without a pension—the salary applied in calculating that other lump sum, and

J represents the number of accrued pension points that, but for the operation of section 15CF (4), would have been applicable in calculating the employer-financed benefit, reduced by the difference between the number of the transferee’s hypothetical maximum pension points and the number of his special sum pension points.

(3) Where section 15CF (5) applies to a person after a transferee ceases to be a contributor and the amount of the employer-financed benefit prescribed by subsection (4) that would be payable to him if section 15CF (5) did not apply to him exceeds the amount he is entitled to receive under section 15CF (5), the board shall pay an amount equal to the excess to the employer who was the transferee’s employer immediately before the transferee ceased to be a contributor.

(4) The employer-financed benefit prescribed by this subsection for the purposes of subsection (3) is the lump sum that the person to whom section 15CF (5) applies would have been entitled to receive under section 15BI (2) (b), 15BUB (1), 15BUC (1) or 15BUD if section 15CF (5) did not apply to him.