8Minimum benefit for transferred contributors on death or invalidity

8 Minimum benefit for transferred contributors on death or invalidity

8 Minimum benefit for transferred contributors on death or invalidity

(1) This clause applies to a transferred contributor who:

(a) is not eligible to apply for the additional benefit, or

(b) does not make an application for additional benefit coverage under section 20 of the Act, or

(c) makes an application for such additional benefit coverage but the application is refused.

(2) If a benefit under:

(a) section 38 of the Act (Benefit on death before early retirement age), or

(b) section 39 of that Act (Benefit on total and permanent invalidity before early retirement age), or

(c) section 40 of that Act (Benefit on partial and permanent invalidity before early retirement age),

would have become payable to or in respect of a transferred contributor to whom this clause applies if the words “before attaining the early retirement age” had been omitted from the section concerned, the employer-financed benefit is to be not less than the amount determined under subclause (3).

(3) The amount to be determined for the purposes of subclause (2) is the sum of:

(a) the notional accumulation, and

(b) the amount calculated in accordance with the following formula:

where:

A represents the amount to be calculated, and

M represents the number of months of the transferred contributor’s contributory service up to 65 years of age, divided by 12, and

W represents the transferred contributor’s final salary divided by 52.2.

(4) If a transferred contributor to whom this clause applies has been assigned a medical classification of 1B under clause A10.1 c of the Trust Deed, the benefit payable under subclause (2) in relation to a benefit under section 39 or 40 of the Act is the sum of:

(a) the notional accumulation, and

(b) the amount calculated in accordance with the following formula: