61   Surrender of policies

(1)  Any employee whose life is insured at the commencement of this Act, or (if the employee’s employer is added to Schedule 3 under section 92) at the date of such addition, may surrender the employee’s policy of insurance or the employee may transfer such policy (if unencumbered) to STC or to a person approved by STC and request STC to continue the payment of the premiums under the said policy. STC shall thereupon cause such premiums to be duly paid, and on the maturity of the policy shall hand over to the employee or to the employee’s personal representatives to be administered as part of the employee’s estate any sums received on the policy, less the amount of the premiums, with compound interest thereon at the prescribed rate from the respective dates of payment:

Provided that STC or the person approved by STC pursuant to this section may at any time prior to the maturity of any policy transferred to STC or such person upon repayment of all moneys paid by STC for premiums thereunder with compound interest thereon at the prescribed rate from the respective dates of payment release such policy to the employee.

The provisions of this section shall extend to any employee of the Sydney Harbour Trust Commissioners included in the certificate of the said Commissioners made in pursuance of section 2 of the Superannuation (Amendment) Act 1928 where the employee’s policy of insurance is in force at the commencement of that Act.

(2)  In this section, a reference to the prescribed rate is a reference to the rate of interest for the time being fixed by STC under section 86A for the purposes of this section.

(3)  The right of an employee under subsection (1):

(a)  to pay STC the surrender value of an insurance policy, or

(b)  to transfer an insurance policy to STC,

      ceases at the commencement of Schedule 10 (7) to the Superannuation (Amendment) Act 1983.