5H   Conversion benefit

(1)  The conversion benefit provided for a contributor under this Part is the amount that is equal to the sum of the benefits set out in subsections (2) and (3).

(2)  The benefit provided under this subsection is the amount of the lump sum benefit payable in respect of the contributor, calculated in accordance with section 9B (6) (b) as if the contributor retired on the conversion date for the contributor. However, if the contributor has reached the age of 55 years, the formula contained in section 9B (6) (b) is to be applied with the following modifications:

(a)  item P equals zero,

(b)  the reference in the definition of item E to 55 years is taken to be a reference to the age of the contributor when the conversion election takes effect,

(c)  item A equals 55.

(3)  The benefit provided under this subsection is an amount equal to the greater of the following amounts:

(a)  the amount of the basic benefit provided to the contributor under the State Authorities Non-contributory Superannuation Act 1987, calculated as if the contributor had been retrenched on the conversion date for the contributor and the benefit was payable on that date, and reduced by the amount, if any, that it would have been reduced by under section 26A of that Act if it had been so payable,

(b)  $18,000.

(4)  If the amount of the conversion benefit calculated under this section is less than the minimum benefit payable to the contributor, the amount of the conversion benefit is to be the amount of the minimum benefit.

(5)  STC may make a determination under section 14AA only in respect of the amount of the conversion benefit that consists of the amount of the benefit provided under subsection (2).

(6)  If STC has made a determination under section 14AA in relation to a conversion benefit, the amount of the benefit is reduced by the amount specified in the determination.