42Benefit on retrenchment before early retirement age

42 Benefit on retrenchment before early retirement age

42 Benefit on retrenchment before early retirement age

(1) The benefit provided by this section is payable by STC to a contributor if, before attaining the early retirement age—

(a) the contributor is retrenched, and

(b) no other benefit is payable under this Act, and

(c) STC is provided with a certificate from the contributor’s employer confirming that the contributor has been retrenched and specifying the ground for the retrenchment.

(2) The benefit provided by this section for a contributor is an amount equal to the sum of—

(a) the contributor-financed benefit, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date.

(2A) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

(3) (Repealed)

s 42: Am 1988 No 136, Sch 1 (8); 1989 No 107, Sch 1; 1991 No 94, Sch 1; 1991 No 95, Sch 9 (10); 1992 No 35, Sch 2; 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [13] [14].