18Reduction relating to early release of benefit

18 Reduction relating to early release of benefit

18 Reduction relating to early release of benefit

(1) This section applies to the reduction of benefits payable to, or in relation to, a contributor or former contributor to whom a benefit (an early release benefit) has been released under—

(a) section 43B, or

(b) section 43C.

(2) If an early release benefit is released to a former contributor who has provided for a deferred benefit or had a benefit preserved under the Act—

(a) STC must, on and from the date of the release—

(i) calculate the amount of the benefit provided for or preserved for a lump sum, and

(ii) reduce the amount of the benefit provided for or preserved by the amount of the early release benefit, and

(b) when the benefit provided for or preserved is payable, the amount of the benefit must be reduced by the amount of the early release benefit.

(3) If subsection (2) does not apply, STC must—

(a) create a debt account in the Fund in relation to the contributor or former contributor, and

(b) when a benefit is payable, reduce the benefit that is payable by the amount debited to the debt account when the benefit is payable.

(4) Despite subsection (3), if a benefit is deferred or preserved under the Act after the release of an early release benefit and before a benefit is otherwise payable to the contributor—

(a) STC must, on and from the date the benefit is deferred or preserved—

(i) calculate the amount of benefit deferred or preserved for a lump sum, and

(ii) reduce the amount of the benefit deferred or preserved by the amount debited to the debt account when the benefit is deferred or preserved, and

(b) when the deferred or preserved benefit is payable, the amount of the benefit must be reduced by the amount debited to the debt account when the benefit was deferred or preserved.

(5) For subsections (3) and (4), the amount debited to the debt account must be the sum of—