New South Wales Consolidated Acts

LOCAL GOVERNMENT AND OTHER AUTHORITIES (SUPERANNUATION) ACT 1927 - SECT 15BV

15BV Commutation of certain pensions

(1) A person who became a contributor under section 15AO, 15AP, 15AQ or 15AR may:

(a) if he is entitled to receive a pension under section 15BF (3) or 15BG (3)-elect to be paid a lump sum in accordance with this section instead of the pension or part thereof, or

(b) if he is entitled to a pension under section 15BH (3) and had attained the age of 60 years on or before becoming so entitled-elect to be paid a lump sum in accordance with this section instead of the pension or part thereof.

(2) A lump sum payable pursuant to an election by a former contributor under subsection (1) (a) shall be calculated:

(a) where the former contributor is a man-in accordance with the following formula:

(b) where the former contributor is a woman-in accordance with the following formula:

"L" represents the lump sum payable,
"F" represents the former contributor’s final average salary,
"M" represents the number of the former contributor’s accrued pension points that, subject to subsection (2A), the former contributor has elected to apply towards provision of the lump sum, and
"N" represents the number of the former contributor’s accrued pension points (if any) that may be applied towards provision of the lump sum in accordance with subsections (4) and (5).

(2A) The maximum number of accrued pension points that may be assigned as the value of M in the appropriate formula in subsection (2) shall be calculated:

(a) where the former contributor is a man-in accordance with the following formula:

(b) where the former contributor is a woman-in accordance with the following formula:

"M" represents the maximum number of accrued pension points that could have been applied towards provision of the lump sum if subsections (4) and (5) had not been enacted,
"Z" represents the amount referred to in subsection (3), and
"F" represents the former contributor’s final average salary.

(2B) A lump sum payable pursuant to an election by a former contributor under subsection (1) (b) shall be calculated:

(a) where the former contributor is a man-in accordance with the following formula:

(b) where the former contributor is a woman-in accordance with the following formula:

"L" represents the lump sum payable,
"S" represents the former contributor’s final salary,
"M" represents the number of the former contributor’s accrued and potential pension points that, subject to subsection (2C), the former contributor has elected to apply towards provision of the lump sum, and
"N" represents the number of the former contributor’s accrued and potential pension points (if any) that may be applied towards provision of the lump sum in accordance with subsections (4) and (5).

(2C) The maximum number of accrued and potential pension points that may be assigned as the value of M in the appropriate formula in subsection (2B) shall be calculated:

(a) where the former contributor is a man-in accordance with the following formula:

(b) where the former contributor is a woman-in accordance with the following formula:

"M" represents the maximum number of accrued and potential pension points that could have been applied towards provision of the lump sum had subsections (4) and (5) not been enacted,
"Z" represents the amount referred to in subsection (3), and
"S" represents the former contributor’s final salary.

(3) The value to be assigned to Z in calculating the entitlement of a former contributor in accordance with a formula in subsection (2A) or (2C) is the amount of the notional accumulation for that contributor.

(4) Where a person who ceases to be a contributor on or before 31 March 1984:

(a) makes an election under subsection (1) (a) and the maximum number of the former contributor’s accrued pension points that is assignable as the value of M in the appropriate formula in subsection (2) is less than the total number of the former contributor’s accrued pension points, or

(b) makes an election under subsection (1) (b) and the maximum number of the former contributor’s accrued pension points and potential pension points that is assignable as the value of M in the appropriate formula in subsection (2B) is less than the total number of the former contributor’s accrued pension points and potential pension points,

a percentage of the remaining accrued pension points or, as the case may be, accrued pension points and potential pension points may, if the former contributor so elects, also be applied towards provision of the lump sum, that percentage being the percentage specified in Column 2 of Schedule F opposite the superannuation year specified in Column 1 of that Schedule in which the former contributor ceased to be a contributor.

(5) Where, after payment of a lump sum under this section (this subsection excepted) a former contributor would be entitled to a pension not exceeding $40 per fortnight, he may elect to apply the balance of his accrued pension points or, as the case may be, accrued pension points and potential pension points towards provision of a lump sum in accordance with this section.

(14) Where, by reason only of the payment of a lump sum under this section, no pension, or a reduced pension, would, but for this subsection, be payable to the widow or widower of the former contributor, a pension is payable to the widow or, as the case may be, the widower, in all respects as if the former contributor had been paid pension instead of the lump sum unless, in the case of a widower, the lump sum was paid before the date of assent to the Local Government and Other Authorities (Superannuation) Amendment Act 1980 .