5Reductions relating to early release of benefit—the Act, s 61RH

5 Reductions relating to early release of benefit—the Act, s 61RH

5 Reductions relating to early release of benefit—the Act, s 61RH

(1) This section applies to the reduction of benefits payable to, or in relation to, a contributor or former contributor to whom a benefit (an early release benefit) has been released under—

(a) section 61RF, or

(b) section 61RG.

(2) If an early release benefit is released to a former contributor who has provided for a benefit under the Act, Part 4, Division 3A or 3B, or had a benefit preserved under the Act—

(a) STC must, on and from the date of release—

(i) calculate the amount of the benefit provided for or preserved, for both a pension and lump sum, and

(ii) reduce the amount of the benefit provided for or preserved by the amount of the early release benefit, and

(b) when the benefit provided for or preserved is payable, the amount of the benefit must be reduced by the amount of the early release benefit.

(3) If subsection (2) does not apply, STC must—

(a) create a debt account in the Fund in relation to the contributor, and

(b) when a benefit is payable, reduce the benefit that is payable by the amount debited to the debt account at the time the benefit is payable.

(4) Despite subsection (3), if a benefit is deferred or preserved under the Act after the release of an early release benefit and before a benefit is otherwise payable to the contributor—

(a) STC must, on and from the date the benefit is deferred or preserved—

(i) calculate the amount of benefit deferred or preserved, for both a pension and lump sum, and

(ii) reduce the amount of the benefit deferred or preserved by the amount debited to the debt account at the time the benefit is deferred or preserved, and

(b) when the deferred or preserved benefit is payable, the amount of the benefit must be reduced by the amount debited to the debt account at the time the benefit was deferred or preserved.

(5) For subsections (3) and (4), the amount debited to the debt account must be the sum of—