15Benefit to be adjusted in certain circumstances

15 Benefit to be adjusted in certain circumstances

15 Benefit to be adjusted in certain circumstances

(1) This clause applies to a transferred contributor who is a former holder of a current insurance policy or a former contributor to the Provident Fund and who, in the opinion of the Board, has received, or will receive:

(a) in the case of a transferred contributor whose service was terminated, or who died, before 1 July 1993—a gratuity under section 97 of the Local Government Act 1919, or

(b) in the case of a transferred contributor whose service is terminated, or who dies, on or after that date—a similar gratuity, being a gratuity paid or to be paid by the council as an act of grace on the death or termination of service of an employee of the council and calculated by reference to the period of the employee’s service with the council.

(2) If the employer-financed benefit payable in respect of a transferred contributor to whom this clause applies is determined without reference to the notional accumulation of that contributor, the Board must:

(a) deduct from the employer-financed benefit otherwise payable under the current Act the amount determined in accordance with subclause (3), and

(b) pay that amount to the employer who was the employer of the contributor on the contributor’s exit date.

(3) For the purpose of subclause (2), the amount is an amount calculated in accordance with the formula set out in subclause (4), if greater than nought, otherwise the amount is nought.

(4) The formula referred to in subclause (3) is as follows:

where:

A represents the amount to be calculated, and

G represents the amount referred to in subclause (1) as the gratuity payable to or in respect of the transferred contributor, and

E represents the employer-financed benefit that would be payable under the current Act but for this subclause, and

M represents the employer-financed benefit that would have been payable to the transferred contributor concerned if the employer-financed benefit had been based on the maximum benefit points for that contributor.

(5) An amount payable under subclause (2) is payable from the appropriate reserve.