30Initial credit to be a liability of employer

30 Initial credit to be a liability of employer

30 Initial credit to be a liability of employer

(1) Subject to this section, the initial credit in respect of a contributor who was a contributor to the Account shall constitute a liability due to the Fund by the person who was the employer of the contributor at the date on or before which he became a contributor.

(2) An employer shall pay to the Board the amount of his liability as determined under subsection (1) within one month after the service on him of a requisition of the Board requiring the payment of that amount.

(3) The liability of an employer as determined under subsection (1) may be extinguished over such period not exceeding twenty years as the Board may approve by annual instalments of principal, together with interest at the average earning rate on the Fund during the immediately preceding financial year, compounded annually at the end of each financial year, on the outstanding balance of the liability.

(4) Where any amount is not paid by an employer under the foregoing provisions of this section on or before the due date for payment thereof, the employer shall pay to the Board interest on the amount due at the average earning rate on the Fund during the immediately preceding financial year, compounded annually at the end of each financial year.

(5) Where, in respect of a contributor, an amount becomes payable under subsection (4) of section 24 or under section 25, the liability of an employer under subsection (1) shall be adjusted by the Board by reducing the liability by, or by refunding, as the case may require, the amount by which the contributor’s initial credit exceeded an amount equivalent to the amount that would have been the refund of his contributions had he received a refund of contributions at the time he became a contributor.

(6) Notwithstanding any other provision of this section, an employer may, with the approval of the Treasurer, make without further appropriation than this Act special payments to the Fund in any year of such amounts as may be determined by the employer towards reducing the aggregate liability that has arisen or is considered by the employer to be likely to arise under this section and any payments so made shall form part of the operating expenses of the employer in the financial year in which they are made.

(7) Notwithstanding anything contained in any other Act, the Governor may, upon the recommendation of the Treasurer and the Board, approve of the payment to the Fund from the Consolidated Revenue Fund, upon such conditions as may be determined by the Governor on such a recommendation, of amounts towards reducing the aggregate liability of any employer that has arisen or is considered by the employer to be likely to arise under this section, and any payment so approved shall be made without further appropriation than this Act.