12Minimum benefit for qualified transferred contributors

12 Minimum benefit for qualified transferred contributors

12 Minimum benefit for qualified transferred contributors

(1) In this clause, a reference to an employer-financed benefit includes a lump sum benefit payable under clause 11 (additional benefit for qualified transferred contributors).

(2) 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,

and who in either case became a contributor to the former Fund under section 15AO, 15AP or 15AQ of the former Act.

(3) 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 and no election is made under clause 16 (1) or 17 (1), 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 employer-financed benefit in respect of that contributor shall be not less than the amount determined in accordance with subclause (4).

(4) For the purposes of subclause (3), the amount referred to in that subclause 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,

M represents the number under the heading “Multiplier of salary” in Schedule 1 opposite the age specified in years in that Schedule that was the age of the transferred contributor at that contributor’s exit date, and

S represents—

(a) if the transferred contributor contributed to the new Fund at the rate of 1 per cent of salary—two-sevenths of that contributor’s final salary,