7Adjustment of benefit where broken service recognised

7 Adjustment of benefit where broken service recognised

7 Adjustment of benefit where broken service recognised

(1) This clause applies to a transferred contributor in respect of whom an order has been in force under the New South Wales Retirement Benefits Regulation 1983 at any time with respect to one or more periods of employment of that contributor which occurred before 1 July 1985.

(2) If a transferred contributor to whom this clause applies has received an allowance with respect to a period of employment to which an order under the New South wales Retirement Benefits Regulation 1983 has been in force, the employer-financed benefit payable under the current Act to or in respect of the transferred contributor shall be reduced by the following amount in respect of each such period—

where—

J represents the amount by which the employer-financed benefit is to be reduced,

S represents the amount of the transferred contributor’s salary, as used in the calculation of the benefit payable to or in respect of the transferred contributor under the current Act,

A represents the amount of the allowance received by the transferred contributor, and

W represents the annual wages of the transferred contributor, as determined by the Board, immediately before the allowance became payable to the transferred contributor.

(3) In this clause, allowance, in relation to a transferred contributor, means such part of the amount of a benefit that has been paid to the transferred contributor from a superannuation scheme as, in the opinion of the Board, represents the employer-financed component of the benefit.