5Calculation of interest ‑ rule 69(4)(a)

5 Calculation of interest ‑ rule 69(4)(a)

(1) Where, pursuant to rule 69(1) of the Rules, a benefit is payable as a lump sum and the Board approves an increase, by an amount of interest, in the amount of the benefit payable to the person, interest will be calculated in accordance with this clause.

(2) Interest on the lump sum is equal to the sum of the interest for each relevant period.

(3) Interest on the lump sum will be calculated for each relevant period in accordance with the following formula:

(LS + AI )  (1 + i)n ‑ (LS + AI)

where

LS is the amount of the lump sum benefit that has been delayed.

AI is the accumulated interest, if any, on the lump sum amount from the prior relevant periods.

i is the rate of interest applicable to the relevant period as determined under clause 7, divided by 365 (or in a leap year, by 366).

n is the number of days in the relevant period.

relevant period is a year or part of a year for which interest has been determined under clause 7 and which occurs during a period of delay.