Clause 7

by deleting the words “or within one year after he was granted a pension under section 3 or 4” in the second and third lines of subsection (1) and substituting the words “or a Member, having opted under section 7 to receive a full pension without any gratuity, dies within one year of his pension taking effect”;

by deleting the words “section 7” in subsections (2), (3) and (4) and substituting in each case the words “section 7(4) (as modified by this section)”;

by deleting subsection (5) and substituting the following subsections:“(5) In the case of a future Member, the gratuity shall be —

where the Member never held any office — an amount equal to either his annual salary as defined in section 3(4) less the amount specified in subsection (5A) or the commuted pension gratuity which might have been granted to him under section 7(4) (as modified by this section) in respect of his reckonable service as a Member before he became a future Member, whichever is the greater;

where the Member had previously held office but was not holding office at the time of his death — an amount equal to either his annual salary as defined in section 3(4) less the amount specified in subsection (5A) or the commuted pension gratuity which might have been granted to him under section 7(4) (as modified by this section) in respect of both his reckonable service as a Member before he became a future Member and as a holder of any office, whichever is the greater; or

where the Member held office at the time of his death — an amount equal to either his annual salary as defined in section 4(4) or the commuted pension gratuity which might have been granted to him under section 7(4) (as modified by this section) in respect of both his reckonable service as a Member before he became a future Member and as a holder of any office, whichever is the greater,less any sums already received by him by way of pension or gratuity under this Act during his lifetime.(5A) The annual salary referred to in subsection (5)(a) or (b) shall be reduced by an amount which shall be the difference between the total amount paid by the Government to the Central Provident Fund on account of the person with respect to his period of reckonable service as a future Member, and the total amount payable by the Government to that Fund on account of the person with respect to that same period of service if the person had been eligible for a pension under this Act.(5B) Any reference in subsection (5A) to the total amount paid or payable by the Government to the Central Provident Fund in respect of any person shall not include reference to any amount thereof which is recoverable from the person’s salary pursuant to the Central Provident Fund Act [Cap. 36] or any regulations made thereunder.(5C) For the purposes of this section, in determining the commuted pension gratuity which might have been granted to a Member under section 7(4) —

he shall be deemed to be eligible for the grant of a pension under section 3 or 4 notwithstanding the fact that he has less than the minimum number of years of reckonable service as required by those sections or the fact that he had not attained the age of 50 years; and

in the case of a Member who dies before attaining the age of 50 years, the commuted pension gratuity ascertained in accordance with section 7(4) and this section shall be discounted at the prescribed discount rate in respect of each year or part thereof falling between the date he would have attained the age of 50 years had he not died and the date of his death (both dates inclusive).”.