(1) If the amount of a benefit that would, but for this clause, be payable under:(a) section 38 of the current Act (benefit on death before early retirement age),(b) section 39 of that Act (benefit on total and permanent invalidity before early retirement age), or(c) section 40 of that Act (benefit on partial and permanent invalidity before early retirement age),to or in respect of a transferred contributor would be less than a lump sum benefit calculated in respect of that contributor in accordance with subclause (2), the Board shall, instead of paying the first-mentioned benefit, pay that lump sum benefit to that contributor or, if the case so requires, to such person as would have been entitled under section 38 of that Act to the first-mentioned benefit.(2) The lump sum benefit referred to in subclause (1) shall be calculated in accordance with the following formula:
Z represents the lump sum benefit to be calculated,
A represents the final salary for the transferred contributor concerned, and
N represents the number of periods for that contributor which would have been applicable contribution periods for that contributor if:(a) the current Act had been in force at that contributor’s entry date, and(b) that contributor had become a contributor under the current Act on that date.(3) Whenever the Board pays a benefit in accordance with this clause, it shall:(a) debit the Additional Benefit Reserve Fund with the amount of the additional benefit which would have been payable if an additional benefit had been paid under the current Act, and(b) debit the remainder to the appropriate employer reserve.