38AWithdrawal benefit

#### 38A Withdrawal benefit 38A Withdrawal benefit > > (1) In this section— > > > > contributory service, in relation to a contributor who is retrenched, resigns or is dismissed or discharged from the service of an employer, is the next preceding period that— > > > > > (a) began— > > > > > > > (i) when the contributor last became a contributor, or > > > > > > > (ii) if, since last becoming a contributor, the contributor had been held to be on leave of absence without pay as provided by section 48—when an employer re-employed the contributor after that leave of absence, and > > > > > (b) ended when the contributor’s employment with the employer ceased. > > > > prescribed rate means— > > > > > (a) in respect of any relevant period ending before 1 July 1972—3.5 per cent per year, and > > > > > (b) in respect of any relevant period beginning on or after 1 July 1972—the rate as fixed by STC from time to time, having regard to the earnings of the Fund and such other matters as STC considers relevant. > > > > > (c) (Repealed) > > > (2) If a contributor who has not completed 5 years’ contributory service is retrenched, resigns or is dismissed or discharged from the service of an employer, the contributor is, subject to section 38B, entitled to receive from the Fund the amount that would have been payable if the contributor had elected to take the benefit of section 38. > > > (3) If a contributor who has completed 5 years’ but less than 10 years’ contributory service is retrenched, resigns or is dismissed or discharged from the service of an employer, the contributor is, subject to section 38B, entitled to receive from the Fund an amount equal to the sum of— > > > > > (a) the amount that would have been payable if the contributor had elected to take the benefit of section 38, and > > > > > (b) interest— > > > > > > > (i) compounded on 30 June each year in respect of the period beginning with the day on which the contributor first became liable to make contributions under this Act and ending with the day on which the contributor ceased to be employed by that employer, and > > > > > > > (ii) calculated at the prescribed rate on the amount ascertained by applying the formula set out in subsection (5). > > > (4) If a contributor who has 10 years’ contributory service or more is retrenched, resigns or is dismissed or discharged from the service of an employer, the contributor is, subject to section 38B, entitled to receive from the Fund an amount equal to the sum of— > > > > > (a) the amount that would have been payable if the contributor had elected to take the benefit of section 38, and > > > > > (b) interest— > > > > > > > (i) compounded on 30 June each year in respect of the period beginning with the day on which the contributor first became liable to make contributions under this Act and ending with the day on which the contributor ceased to be employed by that employer, and > > > > > > > (ii) calculated at the prescribed rate on the amount ascertained by applying the formula set out in subsection (5), and > > > > > (c) a further amount calculated in accordance with the following formula— > > > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g29.gif) > > > where— > > > > > > T represents the sum of the amounts referred to in paragraphs (a) and (b), and > > > > > > P represents the period of the contributor’s contributory service, expressed in years with any fractional part of a year being calculated on a daily basis. > > > (5) For the purposes of subsections (3) (b) and (4) (b), the formula is as follows— > > > > %20AND%20(No%3D028)%20AND%20(Year%3D1916)%20AND%20(%22Historical%20Document%22%3D0))/g30.gif) > > where— > > > > A represents the total amount of contributions (excluding contributions refundable under section 15A (6AB)) that the contributor had paid to the Fund from the beginning of the contributor’s contributory service to the beginning of the period in respect of which the calculation is to be made, together with interest (if any) at the prescribed rate calculated at 30 June immediately preceding that period, and > > > > B represents the total amount of those contributions from the beginning of the contributor’s contributory service to the end of the period in respect of which the calculation is to be made, together with interest (if any) at the prescribed rate calculated at 30 June immediately preceding that period. > > > (5A) Despite subsections (2), (3) and (4), the maximum amount that a contributor is entitled to receive from the Fund under this section is— > > > > > (a) in the case of a contributor who has not attained the age of 55 years—the amount calculated by STC as the value of the lump sum that would have been payable to the contributor had he or she retired at 55 years of age and elected under section 21C to commute the whole of the pension to which the person was entitled on retirement at that age, or > > > > > (b) in the case of a contributor who has attained the age of 55 years—the amount calculated by STC as the value of the lump sum that would have been payable to the contributor had he or she retired at his or her current age and elected under section 21C to commute the whole of the pension to which the person was entitled on retirement. > > > (5B) If STC calculates that the maximum amount that a contributor is entitled to receive from the Fund under subsection (5A) is less than the amount the contributor would have been entitled to receive under this section had the amendments made to this section by the Superannuation Legislation Amendment Act 1998 not been made, then the contributor is entitled to receive the greater amount (despite those amendments). > > > (6) If STC has made a determination under section 61RA in respect of a benefit payable under this section, the amount of the benefit is reduced by the amount specified in STC’s determination. > > **s 38A:** Ins 1972 No 66, sec 6 (t). Am 1975 No 98, Sch 7 (2); 1976 No 101, Sch 3 (23); 1977 No 137, Sch 7 (5); 1978 No 143, Schs 6 (9), 7 (6); 1980 No 50, Sch 3 (5); 1987 No 40, Sch 1 (11). Subst 1988 No 133, Sch 1 (27). Am 1988 No 133, Sch 2 (13); 1991 No 95, Sch 10 (7); 1996 No 39, Sch 4; 1997 No 42, Sch 1.8 \[13\]; 1998 No 72, Sch 1.4 \[7\]–\[9\]; 1999 No 86, Sch 2.6 \[13\] \[14\]; 2000 No 100, Sch 6 \[3\].