14Retirement benefit

14 Retirement benefit

14 Retirement benefit

(1) A male transferred contributor who retires on or after reaching 60 years of age, or a female transferred contributor who retires on or after reaching 58 years of age, is entitled to elect to receive either—

(a) a retirement benefit in the form of—

(i) a pension calculated in accordance with the formula set out in subclause (4), and

(ii) a lump sum consisting of a contributor-financed benefit comprising the amount in the transferred contributor’s account and an employer-financed benefit calculated in accordance with the formula set out in subclause (5), or

(b) a retirement benefit in the form of a lump sum calculated in accordance with section 37 (2) of the later Act.

(2) A male transferred contributor who retires before reaching 60 years of age, on grounds other than physical or mental incapacity, does not have the option of electing to receive a pension under this clause and is entitled only to a lump sum calculated in accordance with section 37 (2) of the later Act.

(3) A female transferred contributor who retires on or after reaching 55 years of age is entitled to receive a retirement benefit in the form of—

(a) a pension calculated in accordance with the formula set out in subclause (4), and

(b) a lump sum consisting of a contributor-financed benefit comprising the amount in the transferred contributor’s account and an employer-financed benefit calculated in accordance with the formula set out in subclause (5).

(4) The formula referred to in subclause (1) (a) (i) and subclause (3) (a) is as follows—

where—

P represents the pension to be calculated, and

K represents the amount of $1,600 adjusted as provided by subclause (7), and

S represents the number of complete years of service of the transferred contributor not exceeding 40, and

C represents the number of days of continuous contributory service that the transferred contributor has had with one or more employers during the period beginning with the transfer date and ending with that contributor’s exit date, and

D represents the number of days of continuous contributory service that the transferred contributor has had with one or more employers during the period beginning with that contributor’s entry date as determined in accordance with clause 7 (2) and ending with his or her exit date.

(5) The formula referred to in subclause (1) (a) (ii) and subclause (3) (b) is as follows—

where—

E represents the amount to be calculated, and

F represents the final average salary of the transferred contributor, and

A represents the accrued benefit points for the transferred contributor at the transferred contributor’s exit date, and

TP represents the transferred contributor’s transfer points as referred to in clause 8 (1).

(6) A transferred pensioner who, immediately before the transfer date, was entitled to receive a superannuation allowance or prescribed pension under the earlier Act is entitled to receive a pension of a similar amount under this Regulation, but subject to any adjustments that may be made under Part 5.

(7) If there is an adjustment percentage for a year as provided by Part 5, the amount represented by the symbol K in subclause (4) is to be adjusted in accordance with that Part, on and from the adjustment date for that year, by that percentage.

(8) If there have been previous adjustments under subclause (7), or under section 123A (1) of the earlier Act, the amount of $1,600 referred to in the definition of the symbol K in subclause (4) is taken to be a reference to that amount as previously adjusted.

cll 14: Am 15.3.1991.