81Deduction of surcharge deduction amount where member deceased

81 Deduction of surcharge deduction amount where member deceased

(1) If a deceased member’s surcharge debt account is in debit, a person entitled under these Rules to be paid the deceased member’s employer benefit or member benefit (the claimant) may, by notice in writing to CSC, elect to have the debt discharged in one or more of the following ways: (a) by deduction from the deceased member’s employer benefit before it is paid to the claimant as a lump sum, or converted into a pension; (b) by deduction from the deceased member’s member benefit before it is paid to the claimant as a lump sum; (c) by deduction from the pension payable to the claimant after conversion of the deceased member’s employer benefit. (2) If the claimant does not make an election in accordance with subrule (1), the debt must be discharged in the following ways: (a) if these Rules provide that the claimant is to receive the deceased member’s employer benefit in the form of a pension—by deduction from the deceased member’s employer benefit after it is converted into a pension; (b) if these Rules provide that the claimant may elect to receive the deceased member’s employer benefit either as a lump sum payment or converted into a pension and the claimant elects to convert the whole or any part of the benefit to a pension—by deduction from the deceased member’s employer benefit after it is converted into a pension; (c) in any other case—by deduction from the deceased member’s employer benefit before it is paid as a lump sum.