New South Wales Consolidated Acts

NEW SOUTH WALES RETIREMENT BENEFITS ACT 1972 - SECT 27

27 Alternative benefits

(1) This section does not apply to a contributor entitled to make an election under section 26 (6) but applies to any contributor who is entitled to an amount under section 26 because of his ceasing to be employed by an employer:

(a) by reason of his retirement aged sixty years or more, or

(b) where he is aged fifty years or more, by reason of his retirement through infirmity of body or mind where the Board is satisfied that the infirmity:

(i) incapacitates the contributor from performing his duties, and

(ii) is likely to be permanent, or

(c) where he is aged fifty years or more, by reason of his retrenchment.

(2) Where a person to whom this section applies so elects in relation to the whole or part of the lump sum benefit to which, but for the election and the operation of this section, he would be entitled under section 26 there shall be paid from the Fund instead of the lump sum benefit or part thereof to which the election relates:

(a) a pension for himself for life on and from the day that next succeeds his retirement or retrenchment,

(b) a pension for himself for life on and from the day that next succeeds his retirement or retrenchment with an increase of ten per centum in the amount thereof at the expiration of the period of three years that next succeeds the first payment of pension and at the expiration of each succeeding period of three years, each such increase being calculated by reference to the rate at which that first payment of pension was made,

(c) a pension for himself for life on and from the day following his retirement or retrenchment and, if his spouse at the date on which the benefit under section 26 would have been payable is living at his death, a pension for that spouse for life, on and from the day that next succeeds his death of an amount equal to five-eighths of the pension payable to him immediately before his death, or

(d) pensions as provided in paragraph (c), with either pension, or with both pensions, as may be specified in the election, being increased as provided in the case of a pension referred to in paragraph (b).

(3) An election under subsection (2):

(a) shall be made not later than three months before the day on which the lump sum benefit to which the election relates becomes payable,

(b) takes effect on the day on which any part of that lump sum benefit becomes, or would but for the election have become, payable,

(c) has no force or effect if the person who made the election dies before the election takes effect.

(4) The amount of pension payable pursuant to an election under this section is the amount determined by the Board to be the actuarial equivalent of the lump sum benefit, or part thereof, to which the election relates, regard being had to any other pension, and any increase of pension, to which the election relates.

(5) A widow to whom a pension referred to in subsection (2) (c) or (2) (d) is being paid may, at any time, elect to commute the whole or part of that pension and, upon such an election taking effect, there shall be paid to the widow from the fund, instead of the pension or part thereof to which the election relates, an amount of lump sum benefit determined by the Board to be the actuarial equivalent of the pension or part thereof to which the election relates.

(6) Subsection (5) does not authorise the commutation of the amount of any increase of pension payable under Part 4A.