5Optional further units

5 Optional further units

5 Optional further units

A permanent servant of a council who has not attained the age of fifty-five years and—

(a) who before the commencement of the Local Government and Other Authorities (Superannuation) Amendment Act 1959 has effected a policy of insurance under section 4, may, if such policy is still subsisting, within six months after such commencement or thereafter at such times as may be prescribed, or

(b) who after the commencement of the Local Government and Other Authorities (Superannuation) Amendment Act 1959 effects a policy of insurance under section 4 may, upon effecting such policy or thereafter at such times as may be prescribed,

effect one or more optional cover units of insurance of two hundred dollars each, but so that the total of the compulsory and optional cover (including in a case to which paragraph (a) applies any optional cover effected before such commencement) so effected shall not exceed twelve thousand dollars.

Application for such optional units shall be made in such manner as may be prescribed.

Any permanent servant who has effected insurance through the board under section 4 may request the board to accept any existing policy of insurance on his life in lieu of taking out further optional units as provided in this section.

The board may if it sees fit accept such policy provided it is satisfied that such policy to be handed to the board for its acceptance is the equivalent of the optional units of cover applied for, and the provisions of this section shall thereafter apply with respect to such policy as if the permanent servant concerned had taken out optional units as provided.

The council’s quota payable as hereinafter defined, in respect of such policy or policies, shall not in any such case be calculated on the premium or premiums actually payable on such policy or policies, but shall be calculated on the rate of premium which would have been payable if a new policy were effected for the optional units of cover applied for at the then age of such permanent servant.

s 5: Am 1935 No 24, sec 3 (1) (c); 1948 No 33, sec 2 (c); 1954 No 41, sec 2 (a); 1959 No 2, sec 2 (1) (c).