11Additional benefit for qualified transferred contributors

11 Additional benefit for qualified transferred contributors

11 Additional benefit for qualified transferred contributors

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

(a) becomes covered for the additional benefit under the current Act, or

(b) by virtue of clause 4 (transferred contributors), is taken to be covered for that additional benefit.

(2) If—

(a) a benefit becomes payable under section 38 of the current Act (benefit on death before early retirement age) or section 39 of that Act (benefit on total and permanent invalidity before early retirement age) to or in respect of a transferred contributor to whom this clause applies, or

(b) a benefit is paid under section 37 of that Act (benefit at or after early retirement or on death at or after early retirement age) and the Board is satisfied that a benefit would have been payable under section 38 or 39 of that Act if the early retirement age had been 60 years,

the lump sum benefit calculated in accordance with the formula specified in subclause (3) is payable to or in respect of that contributor.

(3) The formula referred to in subclause (2) is as follows—

where—

L represents the amount to be calculated,

S represents the transferred contributor’s final salary,

P represents the number of prospective benefit points which would have been calculated under clause 6 (4) if the early retirement age had been 65 years, and

R represents the number of prospective benefit points which would have been calculated under clause 6 (4).

(4) If, in applying the formula specified in subclause (3), P is not more than R, no lump sum is payable.