38BContributor who is retrenched, resigns or is dismissed or discharged to be entitled to the greatest available benefit

38B Contributor who is retrenched, resigns or is dismissed or discharged to be entitled to the greatest available benefit

38B Contributor who is retrenched, resigns or is dismissed or discharged to be entitled to the greatest available benefit

(1) A contributor who is retrenched from the service of an employer and who, at the date when the retrenchment takes effect, is not entitled to elect to retire on a pension under section 27, 28, 28A or 28AA may, at any time before the end of 3 months after that date, elect between taking—

(a) a lump sum benefit payable under a provision of this Part to any such contributor who is retrenched, or

(b) if such a provision also confers an entitlement to a pension—a pension, or

(c) subject to subsection (7)—the benefit of Division 3A, or

(d) if section 37B applies to the contributor—the benefit of that section.

(2) A contributor who resigns or is dismissed or discharged from the service of an employer may, at any time before the end of 3 months after the date when the resignation, dismissal or discharge takes effect, elect between taking—

(a) a lump sum benefit payable under a provision of this Part to a contributor who has resigned or is dismissed or discharged, or

(b) subject to subsection (7)—the benefit of Division 3A.

(3) If a contributor is retrenched, resigns or is dismissed or discharged from the service of an employer, the employer must take all practicable steps to obtain from the contributor an election under subsection (1) or (2) and, after obtaining such an election, must forward it immediately to STC.

(4) If a contributor who is entitled to make an election under subsection (1) or (2) to take a particular kind of benefit does not make such an election before the end of the prescribed period, the contributor shall be taken to have elected to take the kind of benefit that STC decides to be the most appropriate in the circumstances of the case.

(5) If a contributor elects under this section to take a particular kind of benefit under subsection (1) and would, but for subsection (6), be entitled to a benefit of that kind under 2 or more provisions of this Part, STC must calculate which of the benefits under those provisions would be the greater or greatest.