119ZDSpecial provisions in relation to persons to whom section 7 applies

#### 119ZD Special provisions in relation to persons to whom section 7 applies (1) This section applies to a person with whom an arrangement made by the Commonwealth or an approved authority is in force under section 7. (2) If, after the commencement of this section, a person to whom this section applies becomes an employee and a contributor to the Fund or to the Provident Account: (a) subsection (2A) of section 7 has effect subject to the succeeding provisions of this section; and (b) subsection (3) of section 119D and paragraph (a) of subsection (1) of section 119H have effect in relation to him as if: (i) the arrangement constituted a superannuation scheme; (ii) his employment by the Commonwealth or the authority had terminated immediately before he became an employee; and (iii) he was entitled to have assigned to him the legal title to any life policies that had been assigned to the Commonwealth or the authority in pursuance of the arrangement. (3) Subject to this section, the Commonwealth or the authority is not required to assign the life policies to the person before the expiration of the period within which he was entitled to make an election in accordance with paragraph (b) of subsection (1) of section 119J. (4) If the person makes an election in accordance with paragraph (b) of subsection (1) of section 119J, the succeeding provisions of this section have effect. (5) If the person does not make an election in accordance with subsection (2) of section 119ZC: (a) the Commonwealth or the authority shall surrender the life policy or life policies and, out of the proceeds of the surrender, shall: (i) pay to the Board an amount equal to the surrender value of the policy, or the sum of the surrender values of the policies, calculated as at the date immediately before the person became an employee; and (ii) pay the balance (if any) to the person; and (b) the amount so paid to the Board shall be deemed to have been paid to the Board by the person under subsection (1) of section 119J. (6) If the person makes an election in accordance with subsection (2) of section 119ZC: (a) the Commonwealth or the authority shall assign the life policy or life policies to the Board; (b) the assignment shall be deemed to constitute an assignment of the policy or policies to the Board by the person in accordance with subsection (3) of section 119ZC; and (c) the person is not liable to pay any amount to the Commonwealth or the authority under subsection (2A) of section 7.