38Benefit payable on resignation or dismissal of contributors

38 Benefit payable on resignation or dismissal of contributors

(1)  If a contributor ceases, before attaining his or her preservation age, to be a contributor by reason of –

(a) resignation; or

(b) dismissal –

he or she is entitled to a benefit as provided in this regulation.

(2)  For the purposes of subregulation (1) , the benefit for a contributor who has completed 5 or more years' service as a contributor is to be a lump sum benefit 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 resignation or dismissal; or

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

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications.

(3)  For the purposes of subregulation (1) , the benefit for a contributor who has completed less than 5 years' service as a contributor is to be a lump sum benefit calculated in accordance with whichever of the following formulae provides the greater benefit:

where –

LS is the lump sum benefit payable;