Section 34: Gratuity and reduced pensions

34. Gratuity and reduced pensions (1) A member to whom a pension is granted under this Act may, at his option, when the pension first becomes due and payable, be paid in lieu of such pension, a gratuity not exceeding two thirds of the total amount he would otherwise draw as pension during the first 5 years after retirement, less interest at the rate determined by the Board on the advice of the actuary, together with a pension reduced for the first 5 years by the proportionate part of the amount thus drawn as a gratuity. (2) At the expiry of the 5 years, the member’s pension shall be restored to the full amount to which he would have been entitled had he not exercised the option. (3) Where, pursuant to subsection (1), the monthly pension payable to a member is less than 1,000 rupees, the member may, at his option, be paid in lieu of such pension, such lump sum as may be determined by the Board on the advice of the actuary. (4) The Board shall not be required to effect any further payment to any person in respect of a member who has exercised his option under subsection (3). [S. 34 amended by s. 35 (10) (e) of Act 20 of 2001 w.e.f. 17 September 2001; s. 17 (b) of Act 28 of 2004 w.e.f. 26 August 2004; s. 18 (b) of Act 10 of 2010 w.e.f. 24 December 2010.] [Issue 3] S51 – 12 Revised Laws of Mauritius