employee component means a benefit less the employer component of that benefit;
employer component means the employer component determined under regulation 86 as if the relevant contributor had always contributed at the basic contribution rate.
(2) A benefit in respect of a contributor who, at the time of his or her compulsory retirement or redundancy, resignation, dismissal or cessation of employment as a result of a prescribed arrangement, has not attained the preservation age is to be preserved compulsorily as provided by this regulation until –
(a) the contributor retires from the workforce after attaining the preservation age and elects, by notice in writing to the Commission, to receive the benefit; or
(b) the benefit is payable in accordance with regulation 51 .
(3) A benefit calculated under regulation 34 in respect of an existing contributor is to be preserved as follows:
(a) the employee component is to be transferred to an investment account in the name of the contributor; and
(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor –
or in accordance with an election of the contributor under subregulation (5) .
(4) A benefit calculated under regulation 34 in respect of a contributor, other than an existing contributor, is to be preserved as follows:
(a) the employee component is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; and
(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor –
or in accordance with an election of the contributor under subregulation (5) .
(5) A contributor may elect for a benefit calculated under regulation 34 to be preserved as follows:
(a) the total amount of the benefit; or
(b) the total of –
(i) 3.5 times the part of the balance of the contributor's account under regulation 28 that the contributor would have received if he or she had, at all relevant times, been paying contributions at the basic contribution rate; and
(ii) the balance, if any, of that account after deduction of the part referred to in subparagraph (i) –
whichever total amount is the lesser, is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor and the balance is to be transferred to a compulsory preservation account in the name of the contributor.
(6) A benefit calculated under regulation 35 is to be preserved as follows:
(a) the total benefit is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;
(b) if the contributor so elects, the employee component of the benefit payable is to be transferred to an investment account in the name of the contributor and the employer component of that benefit is to be transferred to a compulsory preservation account in the name of the contributor.
(7) A benefit calculated under regulation 38(2) is to be preserved as follows:
(a) the employee component is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;
(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor.
(8) A benefit calculated under regulation 38(3) is to be preserved as follows:
(a) the amount standing to the credit of the contributor's account is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;
(b) the balance of the total benefit is to be transferred to a compulsory preservation account in the name of the contributor.
(9) [Regulation 40 Subregulation (9) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] If a contributor does not, within a reasonable period as determined by the Commission, elect a complying superannuation scheme to which a benefit, or a component of a benefit, is to be transferred under subregulation (3) , (4) , (5) , (6) , (7) or (8) , the benefit, or component of the benefit, in relation to a contributor, is to be transferred to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.