87Release of benefits because of total and permanent incapacity, on compassionate grounds, or because of severe financial hardship

87 Release of benefits because of total and permanent incapacity, on compassionate grounds, or because of severe financial hardship

(1) This rule applies to a person: (a) to whom associate A benefit, associate B benefit or ancillary benefit applies; and (b) who has not reached his or her preservation age. (2) Subject to Part 10, the associate A benefit, associate B benefit or ancillary benefit becomes payable to the person as a lump sum: (a) if 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—on the date on which CSC so decides; or (b) if 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—on the date CSC approves payment; or (c) if CSC is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01(5) of the SIS Regulations—on the date when CSC becomes so satisfied. (3) An amount that becomes payable under paragraph (2)(b) or (c) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or is necessary to alleviate financial hardship. (4) If only part of a benefit payable under subrule (2) is payable because of subrule (3), 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.