Document ID: chunk:federal_register_of_legislation:C2024C00651:section:18b:p1
Version: federal_register_of_legislation:C2024C00651
Segment Type: section
Provision Reference: s 18B (pt 1/5)
Character Range: 86113–88685

18B  Commutation of retiring allowance—general
 (1) This section applies to a person who becomes entitled to a retiring allowance on or after 12 June 1978 other than a person who:
 (a) becomes entitled to that allowance in pursuance of paragraph 18(2)(a) or (aa); and
 (b) becomes entitled to that allowance under paragraph 18(2AA)(a), (b), (c) or (d).
Note: For the purposes of this section, a person who is a deferring member for the purposes of Part VA is treated as not becoming entitled to a retiring allowance before the person attains the age of 55 years. See section 22DC.
 (3) Notwithstanding anything in this Act, a person may, not earlier than 3 months before, and not later than 3 months after, becoming a person to whom this section applies, by notice in writing signed by the person and delivered personally or sent by post to the Secretary of the Finance Department, elect to convert such percentage (not exceeding 50%) of his or her retiring allowance as is specified in the notice (in this section referred to as the specified percentage) to a lump sum payment determined in accordance with this section.
 (3A) A person who has made an election under subsection (3) to convert a percentage of his or her retiring allowance to a lump sum payment may, not later than 3 months after, but not earlier than 3 months before, becoming a person to whom this section applies, by notice in writing given to the Secretary of the Finance Department, elect that the person's surcharge deduction amount be deducted from the lump sum payment
 (4) If the person has not made an election under subsection (3A), the amount of the lump sum payment is:
 (a) in any of the cases mentioned in subsection (5)—the specified percentage of the annual amount of the retiring allowance payable to him or her multiplied by 10; or
 (b) in any other case—the specified percentage of the annual amount of the retiring allowance payable to him or her multiplied by the number ascertained in accordance with the formula ,
  where x is the number of whole months in the period that commenced on the day on which he or she attained the age of 65 years and ended on the day immediately before he or she became entitled to the retiring allowance.
 (4A) If the person has made an election under subsection (3A), the amount of the lump sum payment is the difference between:
 (a) the amount of the lump sum payment that would have been payable to the person under subsection (4) if he or she had not made the election; and
 (b) the person's surcharge deduction amount.
 (5) The cases referred to