Termination benefit
8 Termination benefit
Where a person to whom this Act applies retires or resigns from office and is not entitled, on so retiring or resigning, to a pension under this Act, the Minister must pay to that person a termination benefit equivalent to – that person’s contributions under this Act; and interest on those contributions made after 1 April 1987 at a rate determined by the Minister; and an amount representing the prescribed rate of contributions in respect of that person, together with interest on that amount, for each pay period commencing – on or after 1 July 1992; or on the day when he becomes a person to whom this Act applies – whichever is the later.
For the purposes of subsection (1), the prescribed amount of contributions is the product of the relevant prescribed rate of contributions set out in the following table and the salary of the person for the relevant period set out in that table:
| Period | Prescribed rate of contributions as a percentage of salary for persons appointed | |
|---|---|---|
| before 1 July 1994 | on or after 1 July 1994 | |
| 1 July 1992 to 31 December 1992 | 1% | ….. |
| 1 January 1993 to 30 June 1995 | 2% | 5% |
| 1 July 1995 to 30 June 1998 | 3% | 6% |
| 1 July 1998 to 30 June 2000 | 4% | 7% |
| 1 July 2000 to 30 June 2002 | 5% | 8% |
| 1 July 2002 onwards | 6% | 9% |
For the purposes of subsection (1)(c), interest is to be added to the prescribed amount of contributions at a rate determined by the Minister.
Where a person to whom this Act applies dies while holding office and no other person becomes entitled on that person’s death to a pension under section 6(1), the Minister must pay to that person’s personal representative a termination benefit calculated under this section.
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