54Payment of deceased former member’s preserved benefit

54 Payment of deceased former member’s preserved benefit

(1) Upon the death of a person who had been a member but at the time of his or her death was not a member or a retirement pensioner (in this rule called a deceased former member), his or her preserved benefit or a pension is payable in accordance with this rule. (2) Subject to Part 10, a deceased former member’s preserved benefit or a pension is payable as follows: (a) if the deceased former member is survived by a spouse, the preserved benefit is payable to the spouse as a lump sum; (b) if the deceased former member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased former member’s notional pension; (c) if the deceased former member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that: (i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and (ii) he or she had made provision for that person or those persons in his or her will; the preserved benefit is payable to, or for the benefit of, the person or persons as a lump sum; (d) in any other case, the preserved benefit is payable to the deceased member’s personal representatives as a lump sum. (3) Subject to Part 10, if a pension becomes payable under paragraph (2)(b), the member benefit (if any) included in the preserved benefit is payable, as a lump sum, to, or for the benefit of, the eligible child or children. (4) Subject to Part 10, a spouse who is entitled to be paid an employer benefit under paragraph (2)(a) may elect that: (a) instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional pension and if he or she so elects the benefit is so converted; or (b) instead of that employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional pension 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. (5) Subrule (4) does not apply to a spouse whose employer benefit, or part employer benefit that is to be converted, is less than the amount prescribed in rule 65B. (6) In this rule:

notional pension, in relation to a deceased former member, means the pension that would have been payable to the deceased former member if, on the date of his or her death, he or she had become entitled, under Division 1 of Part 3, to elect to have his or her employer benefit converted into a pension and had elected to do so.