§ (1) If an insured person, being a member of an approved society, ceases to be a member of that society, whether voluntarily or by expulsion, and fails to become a member of another approved society, then—
- (a) if he becomes a deposit contributor, his transfer value shall be carried to his credit in the Post Office fund: Provided that if a reserve value is credited to the society in respect of him, that reserve value shall be
713 cancelled and the difference between the transfer value and the reserve value shall be carried to the credit of the depositor; - (b) if he does not become a deposit contributor, his transfer value shall be carried to such account and dealt with in such manner as may be prescribed.
§ (2) If an insured person who is a deposit contributor subsequently becomes a member of an approved society for the purposes of this Part of this Act, there shall be transferred to the society the amount standing to his credit in the Post Office fund:
§ Provided that—
- (a) if that amount exceeds the value of the contributions paid by or in respect of him estimated on the assumption that he had been a member of an approved society since his entry into insurance, the excess shall not be transferred to the society but shall be carried to the credit of the Post Office fund;
- (b) if that amount is less than such value the insured person shall be treated as being in arrear to the amount of the deficiency.
§ Amendments made: In Sub-section (1), after the word "become" ["fails to become"], insert the words "within the prescribed time."
§ In paragraph (a), leave out the word "is" ["is credited to"], and insert instead thereof the words "has been."
§ After the word "him" ["in respect of him"], insert the words "such part of."
§ After the word "value" ["reserve value"], insert the words "as is still outstanding (or if the amount so outstanding exceeds the transfer value such part of the reserve value as is equal to the transfer value)."
§ Leave out the words "difference between" ["difference between the transfer"], and insert instead thereof the words "amount, if any, by which."
§ Leave out the word "and" ["and the reserve value"], and insert instead thereof the word "exceeds."
§ Leave out the words "reserve value" ["reserve value shall"], and insert instead thereof the words "amount so cancelled."—[Mr. Lloyd George.]