Singapore legislation
Section 7
Section 7
Commutation of pensions
(1)
Subject to the provisions of this Act, a person to whom a pension is granted under this Act may, at his option exercisable in accordance with this section, be paid —
in the case of a future Member who becomes an office-holding Member —
a full pension under section 4 without any gratuity; or
a commuted pension gratuity without any pension,in respect of his reckonable service as a holder of any office;
in the case of a future Member who remains eligible for a pension under section 2A(2)(b), or a Member (including an office-holding Member) who is not a future Member —
a full pension under section 3 or 4 without any gratuity;
a reduced pension at the rate of two-thirds (⅔) of the full pension together with a gratuity equal to twelve and one-half (12½) times the annual value of one-third (⅓) of the full pension; or
a commuted pension gratuity without any pension,in respect of his reckonable service as a Member (other than as a future Member) or as a holder of any office, as the case may be; or
in the case of a person who has been granted a pension under section 4 after ceasing to hold office and who becomes an office-holding Member again —
a full pension under section 4 without any gratuity; or
a commuted pension gratuity without any pension,in respect of his further service as an office-holding Member.
(2)
The option referred to in subsection (1) shall be exercisable —
separately in respect of reckonable service as a Member and as a holder of any office; and
not later than 30 days after the date when the person becomes eligible for the grant of a pension under this Act, except that if the person has not exercised an option within such time, the President may, if it appears in the circumstances equitable to do so, allow the person to exercise the option at any time prior to the date of payment of a pension or gratuity to him.
(2A)
Where a person fails to exercise the option in accordance with this section, he shall be deemed to have opted to receive a commuted pension gratuity without any pension in respect of his reckonable service as a Member or as a holder of an office or both, as the case may be.
(3)
Such option, once exercised by a person in respect of his reckonable service as a Member or as a holder of any office, as the case may be, shall not be revoked so far as concerns any pension or gratuity so granted to him under this Act in respect of such period of service prior to the exercise of the option.
(4)
Subject to this section, the commuted pension gratuity referred to in subsection (1) shall be a capital sum ascertained by multiplying the prescribed commutation factor by the amount of such pension that the person concerned is eligible for under this Act.
(5)
Where any pension granted to a person under this Act is required to be re-computed by adding his further service as a Member or as a holder of any office to any period of reckonable service previously used in computing his pension, the commuted pension gratuity shall be reduced by such amount of pension or gratuity already received by him in respect of the period of reckonable service previously used in computing his pension.
(6)
Any commuted pension gratuity to be granted to a person shall be computed in accordance with the provisions of this Act in force at the date when the person becomes eligible for the grant of a pension under this Act, and shall be paid in the prescribed manner.
(7)
This section shall not apply to any person who before 1st January 1995 has been granted and paid a pension or gratuity under the provisions of this Act as in force before that date.
(8)
Where the person is, on 1st January 1995, an office-holding Member who —
has already been granted a pension in respect of any period of his reckonable service in an office; and
on his ceasing to hold office, will be eligible to have his pension re-computed with the addition of his further period of reckonable service as an office-holding Member,this section shall remain applicable to such person but only in respect of that further period of reckonable service as an office-holding Member.