5Reduction of benefits

5 Reduction of benefits

5 Reduction of benefits

(1) This section applies to the reduction of benefits payable under the Act, section 22, 24 or 26E to an employee or former employee to whom a benefit (an early release benefit) has been released under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds.

(2) If an early release benefit is released to a former employee for whom the basic benefit was preserved at the time of the release, STC must—

(a) on and from the date of release, reduce the amount of the preserved basic benefit by the amount of the early release benefit, and

(b) when the preserved benefit is payable, reduce the amount of the benefit by the amount of the early release benefit.

(3) If subsection (2) does not apply, STC must—

(a) create a debt account in relation to the employee or former employee, and

(b) when a benefit is payable, reduce the benefit payable by the amount debited to the debt account.

(4) Despite subsection (3), if an employee’s or former employee’s benefit is preserved after the release of an early release benefit but before the benefit is otherwise payable, STC must—

(a) on and from the date the benefit is preserved, reduce the amount of benefit preserved by the amount debited to the debt account, and

(b) when the preserved benefit is payable, reduce the benefit payable by the amount debited to the debt account.

(5) In determining the amount of a reduced benefit, STC may obtain actuarial advice.

(6) In this section—

amount debited, to a debt account, means the amount of the early release benefit and interest on that amount at a rate determined by STC.