20Retrospective increase of rate of contributions

20 Retrospective increase of rate of contributions

(1)  If, under regulation 19(3) or (4) , a contributor elects to increase the rate of contributions retrospectively, he or she must, subject to regulation 19(7) , enter into an arrangement with the Commission for the payment of an amount calculated in accordance with the following formula:

where –

A is the amount to be paid to the Fund by the contributor;

B is the full-time equivalent average annual salary received by the contributor in respect of the year immediately preceding the date of the upgrade calculation;

PBMF is the purchased benefit multiple factor calculated by multiplying the period or periods of the contributor's past full-time equivalent service by the appropriate benefit multiple factor, as provided in regulation 30(1) , for each of those periods;

C is the percentage, as determined by the Actuary, applicable to the contributor, having regard to –

(a) his or her age when he or she enters into the arrangement; and

(b) the period remaining until he or she attains the age of 65 years; and

(c) all other relevant factors –

which percentage is to be the actuarial equivalent of the additional total benefit that will be derived under these regulations if the contributor purchases the service and pays the amount calculated in accordance with this subregulation.

(2)  A contributor may not elect to pay contributions retrospectively if –

(a) to do so would require the contributor to enter into an arrangement under subregulation (1) for the payment of an amount to the Fund by the contributor; and

(b) the payment of that amount to the Fund by the contributor would cause the contributor to exceed his or her relevant non-concessional contributions cap.