Commutation of pension on death
10C Commutation of pension on death
If a person in receipt of a pension under section 5 dies, his spouse may elect, by notice in writing to the Minister, to commute her residual pension payable under section 6 to a lump sum payment in accordance with the following table:
| Date of pensioner's death | Maximum percentage of residual pension to be commuted |
|---|---|
| between 1 July 1999 and 30 June 2000 | 20% |
| between 1 July 2000 and 30 June 2001 | 40% |
| between 1 July 2001 and 30 June 2002 | 60% |
| between 1 July 2002 and 30 June 2003 | 80% |
| from 1 July 2003 onwards | 100% |
On receipt of a notice under subsection (1), the Minister must commute the amount requested by the spouse to a lump sum payment and pay it to her after deducting any tax payable.
The lump sum conversion factors are to be determined by the Minister, on the advice of the Actuary, and are to be specified in a notice published in the Gazette.
A notice under subsection (3) is not a statutory rule for the purposes of the Rules Publication Act 1953.
This section does not apply in a case where the death of a person in receipt of a pension under section 5 occurs 10 years or more after the commencement of that pension.
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