(1) Subject to subsection (2), this section applies in relation to an eligible employee if:
(a) by reason of the termination of the employment in which he or she was last employed before he or she became an eligible employee:
(i) a transfer value within the meaning of Division 2 of Part IX became payable to or in respect of him or her after 25 May 1971 under a superannuation scheme applicable in relation to that employment and an amount equal to that transfer value has been paid to CSC in accordance with subsection 128(1);
(ii) a pension that was based, or included an amount based, wholly upon contributions by his or her employer under a superannuation scheme applicable in relation to that employment or partly upon such contributions and partly upon contributions under the scheme by the person became payable to him or her; or
(iii) benefits whether by way of a lump sum or of a pension, that were payable at a future time and were based, or included an amount or amounts based, wholly upon contributions by his or her employer under a superannuation scheme applicable in relation to that employment or partly upon such contributions and partly upon contributions under the scheme by him or her became applicable in respect of him or her; and
(b) the eligible employee:
(i) underwent a medical examination required under the rules of the superannuation scheme referred to in paragraph (a) for the purpose of determining whether his or her health and physical fitness were of such a standard as would justify his or her being admitted as a member of that scheme;
(ii) underwent a medical examination required by the person by whom he or she was employed in the employment referred to in paragraph (a) for the purpose of determining whether his or her health and physical fitness were of such a standard as would justify his or her being employed in that employment; or
(iii) was admitted as a member of the superannuation scheme referred to in paragraph (a) under provisions of the rules of that scheme corresponding to the provisions of this section.
(2) This section does not apply in relation to an eligible employee if:
(a) a period of more than 3 months elapsed between the termination of the employment referred to in paragraph (1) (a) and the day on which he or she became an eligible employee; or
(b) in the case of a person to whom subparagraph (1)(a)(i) or (ii) applies--the employment referred to in that paragraph terminated by reason of his or her invalidity or his or her physical or mental incapacity to perform his or her duties.
(3) Where, under the superannuation scheme applicable in respect of the employment in which an eligible employee in relation to whom this section applies was last employed before he or she became an eligible employee:
(a) the benefits that would have been applicable in respect of him or her if the termination of that employment had been caused by his or her death, or had been caused by invalidity or physical or mental incapacity, would have been, or would have included, benefits by way of a pension;
(b) those benefits would have been the maximum benefits available under the scheme; and
(c) the applicability of those maximum benefits would not have been attributable to his or her having paid contributions at a higher rate than the ordinary rate of contributions;
sections 16 to 16AE, inclusive, do not apply in relation to him or her.
(4) If CSC is satisfied that, at the time when an eligible employee in relation to whom this section applies commenced to be employed in the employment in which he or she was last employed before he or she became an eligible employee, his or her physical or mental condition was such that, if he or she had then become an eligible employee, grounds would not have existed for the issue of a benefit classification certificate in respect of him or her by CSC, CSC may direct that sections 16 to 16AE, inclusive, do not apply in relation to him or her.
(5) If neither subsection (3) nor subsection (4) of this section is applicable in respect of an eligible employee in relation to whom this section applies, sections 16 to 16AE, inclusive, apply in relation to the eligible employee to the same extent (if any) as they would apart from this section, but, for the purposes of those sections as so applying, regard shall not be had to any physical or mental condition of the person that did not exist at the time when he or she commenced to be employed in the employment in which he or she was last employed before he or she became an eligible employee.