5Election by contributors to Provident Fund to join the Fund

5 Election by contributors to Provident Fund to join the Fund

5 Election by contributors to Provident Fund to join the Fund

(1) Within the election period, a person (not being a person entitled to make an application and election under clause 4) who is, when he or she makes the application referred to in this subclause, a contributor to the Provident Fund may, subject to section 55 of the Act (making of elections and applications):

(a) apply to have transferred to the Fund the amount standing to his or her credit in the Provident Fund,

(b) if the person is the holder of any current insurance policies, apply to surrender or to have cancelled those insurance policies and direct payment to the Board of any money payable in respect of the surrender or cancellation, and

(c) elect under section 11 of the Act to contribute to the Fund.

(2) An election takes effect on the first day of a month to be determined by the Board.

(3) Where an election by a person takes effect, the Board shall:

(a) transfer the amount standing to that person’s credit in the Provident Fund to the Fund,

(b) cause any insurance policies referred to in subclause (1) (b) to be surrendered or cancelled,

(c) pay the proceeds of the surrender or cancellation to the Fund, and

(d) of the amounts transferred or paid under paragraph (a) or (c):

(i) credit 50 per cent to the contributor’s account established under section 9 (1) of the Act, and

(ii) credit 50 per cent to the appropriate employer reserve established in the Fund under section 9 of the Act.

(4) A person referred to in subclause (1) may, before becoming a contributor, make an application under section 12 of the Act (additional benefit) but, subject to that section, nothing prevents a person so referred to from making such an application after becoming a contributor.