9Reduction of benefits

9 Reduction of benefits

9 Reduction of benefits

(1) This section applies to the reduction of benefits payable to, or in relation to, a contributor or former contributor to whom a benefit (an early release benefit) has been released under the Act, section 12F or 12G.

(2) If an early release benefit is released to a former contributor who has provided for a benefit under the Act, section 9B, or had a benefit preserved under the Act, section 9C, STC must—

(a) on and from the date of release—

(i) calculate the amount of the benefit provided for or preserved, and

(ii) reduce the amount of the benefit provided for or preserved by the amount of the early release benefit, and

(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount of the early release benefit.

(3) If subsection (2) does not apply, STC must—

(a) create a debt account in the Fund in relation to the contributor or former contributor, and

(b) when a benefit is payable—reduce the benefit that is payable by the amount debited to the debt account at the time the benefit is payable.

(4) Despite subsection (3), if a benefit is provided for or preserved under the Act, section 9B or 9C after the release of an early release benefit and before a benefit is otherwise payable to the contributor, STC must—

(a) on and from the date the benefit is provided for or preserved—

(i) calculate the amount of the benefit provided for or preserved, and

(ii) reduce the amount of the benefit provided for or preserved by the amount debited to the debt account at the time the benefit is provided for or preserved, and

(b) when the benefit provided for or preserved is payable—reduce the amount of the benefit by the amount debited to the debt account at the time the benefit was provided for or preserved.

(5) For subsections (3) and (4), the amount debited to the debt account must be the sum of—

(a) the amount of all early release benefits released to the contributor, and