4Transfer of insurance policy holders to the SAS Fund

4 Transfer of insurance policy holders to the SAS Fund

4 Transfer of insurance policy holders to the SAS Fund

(1) Any person who, immediately before the transfer day, was the holder of a current insurance policy is to be taken to have elected under section 19 of the current Act to contribute to the SAS Fund.

(2) The election under subclause (1) takes effect on the transfer day.

(3) Subclause (1) applies to a person who has at any time been exempted from the obligation to effect insurance under section 4 of the earlier Act by virtue of section 7 (1) (c) of the earlier Act only if the person has subsequently been informed that an insurance company will accept the insurance risk as mentioned in section 7A (1) of the earlier Act.

(4) If a person referred to in subclause (1) fails to specify a rate as referred to in section 19 (2) (b) of the current Act by the transfer day, the person is to be taken to have elected on that day to contribute at the rate of 1 per cent of the person’s salary.

(5) When an election referred to in subclause (1) takes effect in relation to a person, the Board must:

(a) take such steps as are necessary to have the insurance policies in the person’s name surrendered or cancelled, and

(b) on receipt of the proceeds of the surrender or cancellation—pay those proceeds to the SAS Fund, and

(c) transfer to the SAS Fund any amount standing to the person’s credit in the Provident Fund, and

(d) of the amounts paid or transferred under paragraph (b) or (c) in relation to premiums or contributions paid or payable to an insurance company or to the Provident Fund before 1 July 1988:

(i) credit 50 per cent to the person’s account established under section 12 of the current Act, and

(ii) credit 50 per cent to the appropriate employer reserve, and

(e) of the amounts paid or transferred under paragraph (b) or (c) in relation to premiums or contributions paid or payable to an insurance company or to the Provident Fund on or after 1 July 1988:

(i) credit 54.05 per cent to the person’s account established under section 12 of the current Act, and

(ii) credit 45.95 per cent to the appropriate employer reserve.