41.—(1) If a member in respect of whom an option under regulation 34, 36 or 37 has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised—
(a)an amount equal to the contributions paid under the option must be paid—
(i)in the case of an option under regulation 34 or 36, to the member's personal representatives, and
(ii)in the case of an option under regulation 37, to the employing authority which made the contribution, and
(b)regulation 40 (4) does not apply.
(2) If a member in respect of whom an option under regulation 34 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation 40 (4) applies as if all contributions due after the date of death had been made.
(3) If a member in respect of whom an option under regulation 34, 36 or 37 has been exercised becomes entitled to a pension under regulation 52 as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised—
(a)regulation 40(2) and (4) does not apply, and
(b)an amount equal to the contributions paid under the option must be paid—
(i)in the case of an option under regulation 34 or 36, to the member, and
(ii)in the case of an option under regulation 37, to the employing authority which made the contribution.
(4) If a member in respect of whom an option under regulation 34 has been exercised becomes entitled to a pension under regulation 52 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 40(2) and (4) applies as if all contributions under the option had been made.
(5) If a member in respect of whom an option under regulation 34, 36 or 37 has been exercised—
(a)becomes entitled to a pension under regulation 48, 54 or 55, or
(b)becomes entitled to a pension under regulation 49 before reaching the age of 65,
the increase in the member's pension under Chapter 4 (members' retirement benefits) which would otherwise be due under regulation 40(2) or regulation 42 is reduced.
(6) The amount of the reduction is such amount as the Department determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.
(7) This regulation is subject to regulation 42.