Benefit to be adjusted in certain circumstances
10 Benefit to be adjusted in certain circumstances
This clause applies to a transferred contributor who, in the opinion of the Board, has received, or will receive—
in the case of a transferred contributor whose service was terminated, or who died, before 1 July 1993—a gratuity under section 97 of the Local Government Act 1919, or
in the case of a transferred contributor whose service is terminated, or who dies, on or after that date—a similar gratuity, being a gratuity paid or to be paid by the council as an act of grace on the death or termination of service of an employee of the council and calculated by reference to the period of the employee’s service with the council.
Where the employer-financed benefit payable in respect of a transferred contributor to whom this clause applies is determined without reference to the notional accumulation of that contributor, the amount determined in accordance with subclause (3) shall—
be deducted from the employer-financed benefit otherwise payable under the current Act, and
be paid by the Board to the employer who employed that contributor on that contributor’s exit date.
For the purposes of subclause (2), the amount is—
0, or
an amount calculated in accordance with the formula set out in subclause (4),
whichever is the greater.
The formula referred to in subclause (3) is as follows—
where—
A represents the amount to be calculated,
G represents the amount referred to in subclause (1) as the gratuity payable under the Local Government Act 1919,
E represents the employer-financed benefit that would be payable but for this clause, and
M represents the employer-financed benefit that would have been payable to the transferred contributor concerned if the employer-financed benefit had been based on the maximum benefit points for that contributor.
Editorial note—
Clause 10 (4) was amended by Gazette No 18 of 14.2.1997, p 552, Sch 1.1 [3]. The text of the amendment reads as follows—
[3] Clause 10 (4)
Omit “under section 97 of the Local Government Act 1919”.
Insert instead “to or in respect of the transferred contributor”.
Where the employer-financed benefit payable in respect of the transferred contributor is determined by reference to the notional accumulation of that contributor, the Board shall pay to the employer who employed that contributor on that contributor’s exit date an amount equal to—
0, or
an amount calculated in accordance with the formula set out in subclause (6),
whichever is the greater.
The formula referred to in subclause (5) is as follows—
where—
A represent the amount to be determined,
E represents the employer-financed benefit that would have been payable under the current Act but for this subclause, and
N represents the notional accumulation of the transferred contributor concerned.
An amount payable to an employer under subclause (2) or (5) shall be paid from the appropriate reserve established by the Board.
If the employer-financed benefit payable is reduced by the operation of subclause (2), the number of accrued benefit points for the transferred contributor shall be taken to have been reduced in proportion to the amount by which the benefit was reduced.
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