14Transfer of former contributors under earlier Act

14 Transfer of former contributors under earlier Act

14 Transfer of former contributors under earlier Act

(1) In this clause:

exit date, in relation to a former employee, means the day on which the former employee ceased employment with an employer, that cessation of employment being:

(a) the only such cessation of employment of the former employee, or

(b) where there was more than one such cessation of employment of the former employee—the later or latest of those cessations of employment,

or, if the former employee attained the age of 65 years before any such cessation of employment, the day on which the former employee attained that age.

former employee means a person who, immediately before 1 July 1985, was a contributor under the earlier Act but who ceased to be such a contributor before the commencement day.

(2) A former employee shall be deemed to have made an election under section 11 of the Act (election to contribute to the Fund) which took effect on 1 July 1985 and, with respect to such an election, section 11 of the Act shall be construed as if subsections (2) and (3) of that section had not been enacted.

(3) Where, by virtue of subclause (2), a former employee is deemed to have become a contributor, the Board shall calculate the benefit that would have been payable to that former employee under the provisions of the Act.

(4) A former employee is not entitled to apply for or be granted additional benefit cover under section 12 of the Act (additional benefit).

(5) For the purposes of calculating the benefit referred to in subclause (3) in relation to a former employee:

(a) the number of accrued benefit points used in that calculation is the total of:

(i) the transferred benefit points, calculated in accordance with clause 9 (2), which would have applied to the former employee if the former employee had been a transferred contributor, and

(ii) for each month of service completed during the period that commenced on 1 July 1985 and ended on the former employee’s exit date—one twelfth of the contribution percentage that would have applied to the former employee at 1 July 1985 as calculated in accordance with clause 9 (2) if the former employee had been a transferred contributor, and

(b) the contributor-financed benefit is the amount that would have been calculated in accordance with subclause (1) of clause 8 if the reference to the commencement day in that subclause were a reference to the former employee’s exit date.