17Definition of “notional accumulation” for the purposes of Part 4

17 Definition of “notional accumulation” for the purposes of Part 4

17 Definition of “notional accumulation” for the purposes of Part 4

(1) In this Part:

notional accumulation, in relation to a transferred contributor who is a former contributor to the Benefits 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 ending on or after the transfer day, the lesser of:

(i) an amount calculated in accordance with the formula set out in subclause (2), and

(ii) an amount equal to 1.275 times the contributions paid or payable by the contributor under the current Act,

together with interest at a rate or rates determined by the Board, but reduced by 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 such other charges as may be determined by the Board.

(2) For the purpose of paragraph (b) (i) of the definition of notional accumulation in subclause (1), the formula in relation to a transferred contributor who is a former contributor to the Benefits Fund is as follows:

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 in respect of the applicable contribution period concerned, and

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