Section 10 - State Authorities Superannuation (Closed Local Government Schemes Transfer) (Savings and Transitional) Regulation 1990 - Definition of “notional accumulation” for the purposes of Part 3

10Definition of “notional accumulation” for the purposes of Part 3

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10 Definition of “notional accumulation” for the purposes of Part 3

(1) In this part:

notional accumulation, in relation to a transferred contributor who is a former holder of a current insurance policy or a former contributor to the Provident Fund, means an amount equal to the sum of:

(a) the amounts credited to the appropriate employer reserve, and

(b) in respect of each applicable contribution period since the transfer day, the amount determined in accordance with subclause (2),

together with interest at a rate or rates determined by the Board, less:

(c) an amount or amounts, calculated in such manner as the Board may determine, in respect of the costs of administering the State Authorities Superannuation Scheme, and

(d) such other charges as may be determined by the Board.

(2) The amount referred to in paragraph (b) of the definition of notional accumulation in subclause (1) is the lesser of the following:

(a) 0.85 of the contributions paid or payable by the transferred contributor under the current Act, and

(b) in the case of a transferred contributor who is a former holder of a current insurance policy or a former fixed rate Provident Fund contributor—an amount calculated in accordance with the formula set out in subclause (3), or, in the case of a transferred contributor who is a former variable rate Provident Fund contributor—an amount calculated in accordance with the formula set out in subclause (4).

(3) For the purpose of subclause (2) (b), the formula in relation to a transferred contributor who is a former holder of a current insurance policy or a former fixed rate Provident Fund contributor is:

where:

A represents the amount to be calculated, and

S represents the salary of the transferred contributor, based on the rate of salary determined under section 26 of the current Act (salary basis for contributions) in respect of the applicable contribution period concerned, and

SR represents the salary ratio of that contributor in respect of that period.