18Resumption of contributions after break in employment

18 Resumption of contributions after break in employment

18 Resumption of contributions after break in employment

(1) This section applies to a contributor where—

(a) the employment of the contributor with an employer ceases in circumstances entitling the contributor to be paid a benefit under section 32 (benefit on resignation, dismissal or discharge before age 55) or under section 33 (benefit on retrenchment before age 55), but the contributor does not provide for a preserved benefit,

(b) not later than the expiration of the period of 3 months that next succeeds that cessation of employment, the contributor again commences employment as an employee,

(c) the contributor makes an election under section 12 that takes effect as provided by section 12 (4) (b), and

(d) if the contributor has been paid a benefit as a consequence of the cessation of employment—the amount of the benefit has been repaid to the Fund with interest as provided by subsection (2).

(2) Interest referred to in subsection (1) (d) is payable at a rate specified by the Board on so much of the benefit so referred to as was not represented by the contributor’s component and is so payable from the time of the payment of the benefit to the contributor to the time of its repayment to the Fund.

(3) A contributor to whom this section applies shall be deemed, on the cessation of employment referred to in subsection (1), to have provided under section 34 for a preserved benefit.

s 18: Am 1985 No 154, Sch 1 (9).