"the minimum pension rate", in relation to a person to whom this section applies, means such rate as is determined by the Board on the advice of the Commonwealth Actuary as being the minimum rate of pension applicable to him for the purposes of this section.

"the prescribed day", in relation to a person to whom this section applies, means the day occurring one month after service by the Board on the person of the statement referred to in subsection (6) of this section.

(3)

The Commonwealth Actuary shall, in advising the Board in relation to a person for the purposes of the last preceding subsection, have regard:

(a)

to the contributions (other than a contribution paid to the Fund for the purposes of this section) that the person has paid or is liable to pay to the Fund;

(b)

to the number of units of pension for which the person was contributing immediately before the fourteenth day of December, One thousand nine hundred and fifty-nine;

(c)

to any election made by the person under section forty-seven of the Defence Forces Retirement Benefits Act 1959 ;

(d)

if the person is a reduced benefit contributor referred to in paragraph (a) of the definition of reduced benefit contributor in the last preceding subsection—to the election made by him under section forty-four of the Defence Forces Retirement Benefits Act 1959 ;

(e)

if the person is a reduced benefit contributor referred to in paragraph (b) of the definition of reduced benefit contributor in the last preceding subsection—to the number of units of pension for which he would have been contributing immediately before the fourteenth day of December, One thousand nine hundred and fifty-nine, if he had not been such a reduced benefit contributor;

(f)

to the age of the person on the date of his retirement; and

(g)

to such other matters as the Commonwealth Actuary considers should, in accordance with actuarial principles, be taken into account.

(4)

A person to whom this section applies is entitled, on retirement, in lieu of a refund under section sixty of the Defence Forces Retirement Benefits Act 1948-1959 of the amount of the contributions paid by him to the Fund and a gratuity under section forty-two of that Act, to a pension in accordance with this section.

(5)

The rate at which pension is payable to a person under this section is:

(a)

if, before the prescribed day, the person pays to the Fund, for the purposes of this section, a contribution of an amount that is equal to the maximum additional pension contribution applicable to him—the maximum pension rate applicable to him;

(b)

if, before the prescribed day, the person pays to the Fund, for the purposes of this section, a contribution of an amount that is less than the maximum additional pension contribution applicable to him—a rate equal to the sum of:

(i)

the minimum pension rate applicable to him; and

(ii)

a rate that bears to the difference between the maximum pension rate applicable to him and the minimum pension rate applicable to him the same proportion as the amount of the contribution so paid by him to the Fund bears to the maximum additional pension contribution applicable to him; and

(c)

if, before the prescribed day, the person does not pay to the Fund a contribution for the purposes of this section—the minimum pension rate applicable to him.

(6)

The Board shall, as soon as practicable after the retirement of a person to whom this section applies, serve on him, by post or otherwise, a statement in writing setting out:

(a)

the maximum pension rate applicable to him;

(b)

the amount of the maximum additional pension contribution applicable to him; and

(c)

the minimum pension rate applicable to him.

(7)

If:

(a)

a person to whom this section applies dies before the prescribed day leaving a widow;

(b)

he has not paid a contribution to the Fund for the purposes of this section; and

(c)

before the prescribed day or such later day as the Board allows, his personal representatives pay, or his widow pays, an amount to the Fund for the purposes of this section;

the payment shall be deemed to be a contribution paid by the person to the Fund for the purposes of this section before the prescribed day.