5Transfer of Provident Fund contributors to the SAS Fund

5 Transfer of Provident Fund contributors to the SAS Fund

5 Transfer of Provident Fund contributors to the SAS Fund

(1) Any person (other than one to whom clause 4 applies) who, immediately before the transfer day, was a contributor to the Provident Fund 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) If a transferred contributor who is a former fixed rate Provident Fund contributor fails to specify a rate as referred to in section 19 (2) (b) of the current Act by the transfer day, the contributor is to be taken to have elected on that day to contribute at the rate of 1 per cent of that contributor’s salary.

(4) If a transferred contributor who is a former variable rate Provident Fund contributor fails to specify a rate as referred to in section 19 (2) (b) of the current Act by the transfer day, the contributor is to be taken to have elected on that day to contribute at the rate of 3.5 per cent of that contributor’s salary.

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

(a) transfer the amount standing to the contributor’s credit in the Provident Fund to the SAS Fund, and

(b) if the contributor is the holder of a current insurance policy—take such steps as are necessary to have the insurance policy cancelled or surrendered, and

(c) pay the proceeds of the surrender or cancellation to the SAS Fund, and

(d) of the amounts transferred or paid under paragraph (a) 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 contributor’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 transferred or paid under paragraph (a) 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 contributor’s account established under section 12 of the current Act, and