31Benefit on retrenchment before early retirement age

31 Benefit on retrenchment before early retirement age

31 Benefit on retrenchment before early retirement age

(1) The benefit provided by this section is payable by the Board to a contributor where, before attaining the early retirement age, the contributor is retrenched, no other benefit is payable under this Act and the Board is provided with a statutory declaration by a person, duly authorised for the purpose by the employer, confirming that the contributor has been retrenched and specifying the ground upon which the retrenchment was justified.

(2) If—

(a) a contributor’s exit date was before 13 February 1987 and the period commencing on the contributor’s entry date and ending on that exit date was 10 years or more, or

(b) a contributor’s exit date was on or after 13 February 1987 and the period commencing on the contributor’s entry date and ending on that exit date was 3 years or more,

the benefit provided by this section is an amount equal to the sum of—

(c) the contributor-financed benefit, and

(d) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents—

(i) where the contributor’s exit date is 2 or more years before the contributor would attain the early retirement age—the contributor’s final salary,

(ii) where the contributor’s exit date is less than 2 years, but not less than 1 year, before the contributor would attain the early retirement age—the average of the contributor’s final salary and salary at the last preceding 31 December, or

(iii) where the contributor’s exit date is less than 1 year before the contributor would attain the early retirement age—the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date.

(3) If—

(a) a contributor’s exit date was before 13 February 1987 and the period commencing on the contributor’s entry date and ending on that exit date was less than 10 years, or