THE NATIONAL INSURANCE AND CIVIL SERVICE (SUPERANNUATION) RULES, 1948.

Payments to civil servant in respect of accrued rights

7.—(1) Where, in the case of a person to whom Rule 5 applies (but who has not elected to continue to be subject to a policy under Rule 6 or whose election has been declined by the Minister), his accrued rights under the pension scheme associated with his former employment in relation to any contingency which has occurred are greater than the allowance or gratuity paid to or in respect of him under the Superannuation Acts in relation to that contingency (or there are such accrued rights but no such allowance or gratuity is paid), the Treasury may make payments to or in respect of him equal to the value of those accrued rights less the amount of any allowance or gratuity paid in relation to that contingency.

(2) Where any payment is made by the Treasury under the foregoing paragraph to or in respect of any such person, and that person continues to be employed as a civil servant after such payment, the rights conferred on that person by Rule 5 may be so modified or extinguished as the Minister, with the consent of the Treasury, may determine to be appropriate.

(3) Any such payments shall be made to the person or persons who would, but for these Rules or the passing of the National Insurance Act, have had the right to payment under the pension scheme concerned.

(4) Where this rule would require the deduction of a lump sum from a periodical payment or of a periodical payment from a lump sum, the Minister shall, with the consent of the Treasury and after consultation with the Government Actuary, determine what adjustment is proper to be made.

(5) The accrued rights in any case shall be ascertained for the purpose of this rule in accordance with the provisions of the Second Schedule to these Rules.

(6) Notwithstanding the foregoing provisions of this rule, no payment shall be made in respect of a contingency occurring not later than the appointed day and giving a right to the return of contributions unless the person concerned gives notice in writing to the Minister not later than the 5th July, 1949, that he desires such payment to be made.

(7) If payment in respect of such a contingency as is mentioned in the last preceding paragraph is duly made, no further payment in respect of accrued rights shall thereafter be made to or in respect of that person under these Rules and no increase in the length of his service shall be made hereunder for any purpose of the Superannuation Acts.

(8) No payment of a lump sum shall be made under this rule in respect of accrued rights to a periodical payment:

Provided that, in the case of a person who ceases to be employed as a civil servant, the Treasury may, where the capital value of the accrued rights when added to the capital value of any compensation due to that person under Section 67 of the National Insurance Act (which section relates to compensation for displaced employees) does not exceed two hundred and fifty pounds, make a lump sum payment equal to the capital value of the accrued rights.