65Payment of termination benefit

65 Payment of termination benefit

(1)  Subject to subregulation (2) , the Commission must pay out of the PRB Fund, to a person who is entitled to a termination payment, a lump sum payment to be calculated in accordance with whichever of the following formulae provides the greater benefit:

(a) Formula A, as follows:

where –

P is the amount to be paid;

n is the number of years of service of the member (not exceeding 10);

C is the total of the member's contributions made during the member's period of service;

(b) Formula B, as follows:

where –

P is the amount to be paid;

E is the total contributions and accrued interest as at the date when the member's service is terminated;

D is the total contributions and accrued interest as at 1 July 1992, together with interest on that amount as provided in regulation 55 , to the date when the member's service is terminated.

(2)  If the person entitled to a termination payment has first or again become a member after attaining the age of 65 years, the lump sum is to be calculated in accordance with the formula in paragraph (b) as if that person had paid contributions for the whole of the period of his or her service.

(3)  If a termination benefit is payable to a person who has not paid contributions in respect of a period of service after attaining the age of 65 years, that benefit is to be reduced by an amount representing –

(a) the sum of the contributions taken to have been paid under subregulation (2) ; and