51Certain benefits included in preserved benefits

51 Certain benefits included in preserved benefits

(1) Subject to subrules (1AA), (1A), (1B) and (2) and Parts 10 and 10A (but only to the extent that Part 10A relates to a payment to which paragraph (c) relates), if, in relation to a person: (a) to whom a preserved benefit applies; and (b) who has not attained the age of 55 years; one of the following paragraphs applies, the employer benefit and member benefit included in that preserved benefit becomes payable to him or her as a lump sum on the date specified in that paragraph: (c) CSC decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining—the date on which CSC so decides; (d) the person notifies CSC before 1 July 1998 that he or she intends to leave Australia permanently before 1 July 1998 and CSC is satisfied that that intention will be carried out—the date on which CSC became so satisfied; (e) the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A(2) of the SIS Regulations—the date CSC approves payment; (f) CSC is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01(5) of the SIS Regulations—the date when CSC became so satisfied. (1AA) Paragraph (1)(c) does not apply to a person if he or she is either: (a) a member of the Permanent Forces; or (b) a member of the Reserves rendering continuous full‑time service. (1A) An amount that becomes payable under paragraph (1)(e) or (f) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or are necessary to alleviate financial hardship. (1B) If only part of a benefit payable under subrule (1) is payable because of subrule (1A), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if CSC considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount. (2) Where a person who is entitled to be paid an employer benefit under subrule (1) is a person to whom paragraph (1)(c) applies, the person may: (a) instead of the employer benefit included in the preserved benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects: (i) the employer benefit is so converted; and (ii) the member benefit (if any) included in the preserved benefit is payable to the person as a lump sum; or (b) instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one‑half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects: (i) that part of the employer benefit is so converted; and (ii) the balance of the preserved benefit is payable to him or her as a lump sum. (3) Subrule (2) does not apply to a person whose employer benefit is less than the amount prescribed in rule 65B. (4) Subrule (2) does not apply to a person if: (a) the person ceased to be a member because he or she chose to become an ADF Super member; and (b) invalidity pension is payable to the person under the Australian Defence Force Cover Act 2015; and (c) the person has not turned 60.