34Preserved benefit

34 Preserved benefit

34 Preserved benefit

(1) A contributor who has—

(a) not less than 3 years after his or her entry date become entitled to be paid a benefit under section 32 (benefit on resignation, dismissal or discharge before age 55), or

(b) become entitled to be paid a benefit under section 33 (2) (benefit on retrenchment before age 55),

may elect to make provision instead for a benefit provided by this section.

(2) Where an election made by a contributor under subsection (1) takes effect, a benefit is not payable to, or in relation to, the contributor under any provision of this Act other than this section.

(3) The benefit provided by subsection (5) is payable by the Board upon the contributor attaining the age of 55 years or earlier suffering death or upon the Board being satisfied as referred to in section 30 (1) (c) and is so payable—

(a) except in the case of the death of the contributor—to the contributor, or

(b) in the case of the death of the contributor—to the personal representatives of the contributor or, if appropriate, in accordance with section 57 (payment without grant of probate etc).

(4) The benefit provided by subsection (6) is payable by the Board to the contributor upon the contributor electing to take that benefit and the election taking effect—

(a) after the election made under subsection (1) takes effect, and

(b) before the benefit provided by subsection (5) becomes payable to, or in relation to, the contributor.

(5) The benefit provided by this subsection is an amount equal to the sum of—

(a) the amount of the contributor’s component at exit date, and

(b) the amount calculated in accordance with the formula,

where—

E represents the amount to be ascertained,

S represents the final salary of the contributor,

A represents the contributor’s accrued benefit points at exit date, and

Z represents the figure calculated by raising 0.98 to a power the magnitude of which is the number obtained by deducting from 55 the contributor’s age at exit date expressed in years, any fractional part of a year being calculated on a daily basis.