60Payment of pensions if lump sum converted

60 Payment of pensions if lump sum converted

(1)  If an election is made under regulation 59(1) , (2) , (3) or (4) , the person entitled is to be paid out of the Fund a pension equal to the amount of the relevant lump sum entitlement forgone divided by the conversion factor that is applicable under regulation 61 to that person on the date on which the election becomes effective.

(2)  In the case of a surviving partner of a contributor, the effective date for the purposes of subregulation (1) is the day immediately following the day on which the election is received by the Commission.

(3)  If the election has been made under regulation 59(1) , (2) , (3) or (4) by a person for the conversion of the whole or part of his or her lump sum entitlement into a pension, the lump sum entitlement is to be reduced by the Commission in accordance with the election and any remaining balance is to be transferred –

(a) to an account in a complying superannuation scheme elected by that person; or

(b) [Regulation 60 Subregulation (3) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under paragraph (a) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

(4)  Despite regulation 59(1) , (2) and (3) , an existing contributor may, on ceasing to be a contributor, or on attaining the age of 55 years having ceased to be a contributor as a result of a prescribed arrangement, elect in writing to the Commission to substitute the benefit payable under Part 4 with the benefit payable as appropriate under Schedule 1 .

(5)  An election by a contributor under subregulation (4) in respect of a lump sum benefit determined under regulation 36 is to be an election to convert the whole of that lump sum into a pension.