Retrenchment benefits payable to contributors having not less than 3 years’ contributory service
37A Retrenchment benefits payable to contributors having not less than 3 years’ contributory service
This section applies to a contributor who is retrenched from the service of an employer on or after 13 February 1987 and who, at the time of retrenchment, has completed 3 years’ continuous contributory service.
(Repealed)
For the purpose of subsection (1), a contributor who is retrenched shall be taken to have completed 3 years’ continuous contributory service when—
the contributor has, for a continuous period of 3 years or more immediately preceding the retrenchment, been employed in the service of an employer or employers, and
during the continuous period of 3 years immediately preceding the retrenchment, the contributor has been a contributor under this Act or has been a contributor under this Act and a contributor to the Public Authorities Superannuation Fund.
For the purposes of subsection (1), the period of continuous contributory service by a contributor at the contributor’s exit day is—
subject to paragraph (b)—the period that commenced when the contributor last became a contributor to the Fund and ended on that exit day, or
if immediately before becoming a contributor to the Fund the contributor was a contributor to the Public Authorities Superannuation Fund—the period that commenced when the contributor last became a contributor to the Public Authorities Superannuation Fund and ended on that exit day,
but excluding in either case any part of that period during which the contributor is treated by section 48 as being on leave of absence without pay.
A contributor to whom this section applies is, subject to section 38B, entitled to either—
a lump sum benefit calculated in accordance with the formula set out in subsection (5), or
such pension as is determined by STC to be the equivalent of the contributor’s rights in the Fund.
The formula referred to in subsection (4) (a) is as follows—
where—
B represents the benefit to be determined,
C is equal to—
, or
the contributions paid by the contributor,
whichever is the greater, and
E is equal to .
For the purposes of subsection (5)—
A represents the contributor’s age in years and any fractional part of a year (that part to be calculated on a daily basis) on the contributor’s exit day,
F is equal to—
if “M” is 60 or more—285, and
if “M” is less than 60— ,
M represents the greater of the following—
the contributor’s maturity age,
the contributor’s age in years and any fractional part of a year (that part to be calculated on a daily basis) at the date on which the contributor last became a member of the Fund + 10,
P1 is the employee-contributed pension component calculated in accordance with subsection (7) (a), and
P2 is the employer-financed pension component calculated in accordance with subsection (7) (b).
In subsection (6)—
where EPU is the sum of—
,
, and
UC, and
where—
UE is the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary payable to the contributor on the contributor’s exit day plus, in a case to which section 10W applies, the number of any excess units of pension referred to in section 10W (1) and in respect of which STC considers, in accordance with section 10W (5), that the retention of entitlement to benefits under this Act is warranted.
S is the number of years (including any fractional part of a year calculated on a daily basis) of continuous contributory service by the contributor with any one or more employers.
T is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the contributor’s exit day precedes—
the date on which the contributor attains the maturity age, or
where any employment which, on the contributor’s exit day, the contributor is entitled to count as service for the purposes of section 21 is, in total, for less than a period of 10 years—the expiration of the balance of that period of 10 years,
whichever is the later.
For the purposes of subsection (7) (a)—
UHn is the number of units of pension for which contributions were payable by the contributor on the contributor’s exit day in accordance with the tables of contributions fixed by or under this Act, but excluding—
any such units of pension which are excess units of pension referred to in section 10W (1) and in respect of which no person has any rights in the Fund, and
any such units of pension, being reserve units, for which contributions were being made under section 15A,
Cn is the amount of contributions due for the last contribution period for which contributions were payable by the contributor before the contributor’s exit day, in respect of that number of units of pension,
Rn is the relevant amount under subsection (9) in relation to the contributor for an additional unit of pension on the contributor’s exit day,
TCB is the total amount paid in respect of instalments payable by the contributor on or before the contributor’s exit day for units of pension for which the contributor contributed in accordance with Division 6 of Part 3 (but deducting from that amount any part allocated under this Act to the purchase of fully paid up units),
RB is the amount specified in section 10AG (1) as the cost of a unit of pension in relation to the contributor, and
UC is the number of units (if any) purchased by the contributor and credited to the contributor as fully paid up units under section 20C or otherwise.
For the purposes of subsection (8), the relevant amount in relation to a contributor for an additional unit of pension on the contributor’s exit day is—
where the contributor has attained the prescribed age on or before that day, the amount which, if the contributor were required under Division 5 of Part 3 to commence to contribute for an additional unit of pension on that day, would be the amount payable in accordance with the tables of contributions fixed under section 10AD for that unit for a contribution period, or
where the contributor has not attained the prescribed age on or before that day, the amount equal to the sum of—
the amount payable by the contributor for any additional unit of pension for which the contributor had been required to commence contributing on and from the contributor’s last annual adjustment day for a contribution period or, as the case may be, the amount that would have been so payable if the contributor had been so required, and
for each day of the period commencing on the day following that annual adjustment day and ending on the contributor’s exit day, the amount equal to 1/364th part of the difference between the amount referred to in subparagraph (i) and the amount that that amount would have been if, on the contributor’s last annual review day before the contributor’s exit day, the contributor had been 1 year older than the age actually attained.
For the purposes of subsection (7) (b), the period of continuous contributory service by a contributor on the contributor’s exit day is the period that commenced when the contributor last became a contributor and ended on that day, but excluding any part of that period during which the contributor is treated by section 48 as being on leave of absence without pay.
If STC has made a determination under section 61RA in respect of a benefit payable under this section, the amount of the benefit is reduced by the amount specified in STC’s determination.
If a former employee who—
has been retrenched, and
has received a retrenchment benefit under this section,
subsequently enters the service of the same or another employer, the former employee is not entitled to claim any further benefit in respect of previous service with an employer unless the former employee has complied with section 38C.
(Repealed)
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