47C   Allocation of reduced value units

(1)  Where:

(a)  a contributor or a contributor’s spouse or de facto partner is entitled to a pension under this Act consequent on the contributor’s ceasing to be a contributor, or

(b)  (Repealed)

(c)  a contributor elects to take the benefit of section 37,

      and the contributor has a number of abandoned units at the contributor’s exit day, STC shall (whether or not the contributor has died) allocate to the contributor one (and one only) reduced value unit in substitution for each of the number of abandoned units that the contributor has at the contributor’s exit day.

(1A)  This section does not apply to:

(a)  a person who is entitled to a pension under section 28AA or to a pension under Division 3A, or

(b)  a person who is retrenched from the service of an employer and who is to receive or is receiving a pension under section 37A.

(1B)  (Repealed)

(2)  The reduced value units allocated to a contributor under this section shall be deemed to have been held by the contributor at the contributor’s exit day.

(3)  Where:

(a)  a person referred to in subsection (1) has made an election to take up an abandoned unit under section 10Y or 10Z,

(b)  the unit has not been held as a contributory unit for at least 2 years and 6 months, and

(c)  the contributor’s exit day is before the last day of the contribution period preceding that in which the contributor would attain the maturity age,

      STC may treat the unit as not having been taken up as a contributory unit, and, if STC does so, the contributions paid to the Fund by the contributor concerned or the contributor’s spouse or de facto partner in respect of the unit shall be refunded.

(4)  For the purposes of this section, where an election is made under section 10R to abandon a unit of pension, the unit shall be deemed to be an abandoned unit that the contributor concerned had at the contributor’s exit day.

(5)  For the purposes of this section, where an election is made under section 23BA in respect of one or more additional units of pension, the unit or units shall be deemed to have been held by the contributor concerned at the contributor’s exit day.

(6)  For the purposes of sections 37 (4) and 47D (3), a contributor to whom reduced value units are allocated under this section shall, as at the contributor’s exit day, be deemed to have held at any time one (and one only) reduced value unit for each of the number of abandoned units that the contributor had at that time, but so that:

(a)  the number of reduced value units that the contributor would, but for this paragraph, be so deemed to have held before that time does not exceed the number that the contributor is so deemed to have held at that time, and

(b)  the number of reduced value units that the contributor would, but for this paragraph, be so deemed to have held at that time does not exceed the number that the contributor is allocated at the contributor’s exit day.

(7)  Where the number of reduced value units to be allocated to a contributor is smaller than the number of abandoned units that the contributor has at the contributor’s exit day, STC shall, for the purposes of subsection (6), have regard to such of those abandoned units as the contributor has had the longest.

(8)  This section does not apply to:

(a)  a person to the extent to which the person or the person’s spouse or de facto partner satisfies STC that the allocation of reduced value units would prejudicially affect the person or the person’s spouse’s or de facto partner’s interests, or

(b)  a person whose exit day is before 13 January 1977.