37ARetrenchment benefits payable to contributors having not less than 3 years’ contributory service

37A Retrenchment benefits payable to contributors having not less than 3 years’ contributory service

37A Retrenchment benefits payable to contributors having not less than 3 years’ contributory service

(1) This section applies to a contributor who is retrenched from the service of an employer on or after 13 February 1987 and who, at the time of retrenchment, has completed 3 years’ continuous contributory service.

(1A) (Repealed)

(2) For the purpose of subsection (1), a contributor who is retrenched shall be taken to have completed 3 years’ continuous contributory service when—

(a) the contributor has, for a continuous period of 3 years or more immediately preceding the retrenchment, been employed in the service of an employer or employers, and

(b) during the continuous period of 3 years immediately preceding the retrenchment, the contributor has been a contributor under this Act or has been a contributor under this Act and a contributor to the Public Authorities Superannuation Fund.

(3) For the purposes of subsection (1), the period of continuous contributory service by a contributor at the contributor’s exit day is—

(a) subject to paragraph (b)—the period that commenced when the contributor last became a contributor to the Fund and ended on that exit day, or

(b) if immediately before becoming a contributor to the Fund the contributor was a contributor to the Public Authorities Superannuation Fund—the period that commenced when the contributor last became a contributor to the Public Authorities Superannuation Fund and ended on that exit day,

but excluding in either case any part of that period during which the contributor is treated by section 48 as being on leave of absence without pay.

(4) A contributor to whom this section applies is, subject to section 38B, entitled to either—

(a) a lump sum benefit calculated in accordance with the formula set out in subsection (5), or

(b) such pension as is determined by STC to be the equivalent of the contributor’s rights in the Fund.

(5) The formula referred to in subsection (4) (a) is as follows—

where—