34Benefit on redundancy or compulsory retirement

34 Benefit on redundancy or compulsory retirement

(1)  Subject to subregulation (2) and regulation 35 , if –

(a) a contributor is retired for the reason that –

(i) his or her service, office or position is unnecessary; or

(ii) the work for which he or she was engaged is finished; or

(iii) diminution of work necessitates a reduction in the number of employees; or

(b) a contributor, the term of whose appointment is fixed by an Act, is not at the end of a term reappointed to his or her office and does not, by reason of another appointment, continue to be a contributor; or

(c) a contributor, who is a contract employee, ceases to be a contract employee by reason of his or her contract not being renewed by the employer; or

(d) a contributor is retired by virtue of voluntary redundancy under an employment redundancy program or ceases to be a contributor as a result of a prescribed arrangement –

the contributor is entitled to a lump sum benefit calculated in accordance with this regulation.

(2)  If a person ceases to be a contributor under this regulation and his or her length of service is less than 3 years, he or she is taken to have resigned and is entitled to a benefit calculated under regulation 38 .

(3)  If a person to whom subregulation (1) refers is a contributor who is under the age of 60 years, his or her lump sum benefit is to be calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding the cessation of his or her service; or

(b) in the case of a contributor whose length of service at the time of the cessation of his or her service is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;