Section 15

No pension or gratuity that would under this Act be granted to a person may be so granted if, at the date he or she became eligible for the grant of such pension, the person has been adjudged a bankrupt or declared insolvent by judgment of a court of competent jurisdiction in Singapore or elsewhere and has not obtained his or her discharge from that adjudication or declaration.

If any person to whom a pension has been granted under this Act is adjudged a bankrupt or is declared insolvent by judgment of any such court, then such pension forthwith ceases.

Where a pension or gratuity ceases or is not granted by virtue of this section, it is lawful for the President, from time to time, during the remainder of the life of the person whose pension has ceased or who would have been eligible to receive the pension, or during such shorter period or periods, either continuously or otherwise, as the President thinks fit, to direct all or any part of the moneys to which that person would have been eligible to receive by way of pension or gratuity, had that person not become a bankrupt or insolvent, to be paid to or applied for the maintenance and benefit of all or any (to the exclusion of others) of the following, namely, the person and the person’s wife, child or children, or other dependants in such proportions and manner as the President thinks proper; and the moneys are to be paid or applied accordingly.

Moneys applied for the discharge of the debts of the person whose pension has ceased or not been granted must be regarded, for the purposes of subsection (3), as applied for the person’s benefit.

When a person to whom a pension or gratuity has not been granted, or whose pension has ceased under the provisions of this section, obtains a full and proper discharge from the person’s bankruptcy or insolvency, the person’s pension or gratuity or both (as the case may be) are to be restored to the person with effect from the date of the discharge.