South Australian Consolidated Acts South Australian Consolidated Acts42A—Offer of lump sum to certain invalid pensioners
(1) If—
(a)
the Board is satisfied on the advice of two medical practitioners that an
invalid pensioner who has not reached the age of retirement is fit to be
employed in full time or part time employment; but
(b)
appropriate employment has not been offered to the pensioner under
section 42,
the Board may offer to pay a lump sum to the pensioner instead of his or her
pension.
(2) The amount of the
lump sum will be the greater of the following:
(a) an
amount equivalent to the amount that would be produced by commutation of the
whole of a pension calculated as follows:
Where—
"P" is the pension
"P" "1" is the pension to which the pensioner was entitled immediately before
the payment of the lump sum (expressed as an annual amount)
"M" is the number of complete months between the time when the lump sum is
paid and when the pensioner would reach the age of retirement;
(b) an
amount equivalent to three times the amount of the pensioner's annual pension
immediately before the lump sum is paid.
(3) For the purposes
of the commutation referred to in subsection (2)—
(a) the
commutation factors applicable on the commutation of a retirement pension will
be used; and
(b) the
contributor's age will be taken to be his or her age when the lump sum is paid
or 55 years whichever is the greater.
(4) If the pensioner
accepts the Board's offer under subsection (1), the pensioner's right to
future payments of the pension and all derivative rights cease on payment of
the lump sum.