29Deductions against contributors' accounts for death and disability cover

29 Deductions against contributors' accounts for death and disability cover

(1)  The Commission is to maintain within the contributory scheme the death and disability account established under the former regulations.

(2)  The Commission, having regard to the advice of the Actuary in respect of both the experience of providing death and disability benefits under these regulations and the different commencement date of contributors, is to establish premium rates sufficient to meet fully the cost of death and disability benefits.

(3)  The premium rates established under subregulation (2) are –

(a) to be determined as soon as practicable after the report into the most recent actuarial investigation under regulation 10 is provided under that regulation; and

(b) to be determined having regard to the experience of providing death and disability benefits in the financial years to which that report relates; and

(c) to have effect for the period commencing on the next 1 October after the report is provided and ending when the next determination of premium rates takes effect under this paragraph.

(4)  In respect of each contributor under the age of 60 years, the Commission is to –

(a) debit the account of that contributor with a premium determined by reference to the salary received by that contributor and the appropriate premium rate established in respect of that contributor under subregulation (2) ; and

(b) credit the sum of the amounts debited under paragraph (a) to the death and disability account.

(5)  As soon as practicable after 30 June in each year, the Commission is to debit the death and disability account with an amount that, in the opinion of the Actuary, was required for the provision of the insured component of the death and disability benefits paid under these regulations during the preceding financial year.

(6)  For the purposes of subregulation (5) , in respect of a contributor for whom a pension or lump sum benefit is paid by reason of total and permanent incapacity, partial and permanent incapacity or death, the insured component of that benefit is taken to be an amount equal to the present value of the prospective service component of that pension or benefit, less the present value of the amount paid by the Minister to the prospective service component of that pension or benefit paid under .