1) If an employee or a dependant of an employee to whom a pension is payable in terms of this Act is resident outside the Republic or is absent from the Republic for a period or periods totaling more than six months, the Director-General may award a lump sum as determined by him in Lieu of such pension, and upon payment of such lump sum the right to the pension shall expire.
2) Before the Director-General exercises his power under subsection (1), he shall notify that employee or dependant of his intention and request him to submit any representations that he wishes to make for consideration to the Director-General within the period specified by the Director-General.