Paragraph 3 applies as if for sub-paragraphs (1) to (3) there were substituted—

“(1)

Where the member becomes entitled to income withdrawal, the applicable amount is—

$\frac{\mathrm{VULSR}}{\mathrm{VUR}}\times (\mathrm{LS}+\mathrm{AD})$

where—

VULSR is the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006, calculated in accordance with paragraphs 25 and 26 of Schedule 36,

VUR is the value of the individual’s uncrystallised pension rights on 5th April 2006, calculated in accordance with paragraphs 8 and 9 of that Schedule,

LS is the lump sum paid, and

AD is the aggregate of the amount of the sums, and the market value of the assets, designated as available for the payment of F1drawdown pension on that occasion.

(2)

For the purposes of sub-paragraph (1) there is to be deducted from the aggregate of the lump sum and the amount of the sums and the market value of the assets designated as available for the payment of F1drawdown pension so much (if any) of that amount as represents rights which are attributable to a disqualifying pension credit.

(3)

Where the member becomes entitled to a lifetime annuity, the applicable amount is—

$\frac{\mathrm{VULSR}}{\mathrm{VUR}}\times (\mathrm{LS}+\mathrm{APP})$

where—

VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and

APP is the annuity purchase price.”

Paragraph 3 applies as if for sub-paragraphs (5) to F2(7A) there were substituted—

“(5)

There is to be deducted from the aggregate of the amount of the lump sum and the annuity purchase price—

(a)

if the annuity is purchased (in whole or in part) by the application of sums or assets representing the whole or part of the F3member's drawdown pension fund F4or flexi-access drawdown fund, the aggregate of the amount of those sums and the market value of those assets, and

(b)

in any case, so much (if any) of the aggregate of the lump sum and the annuity purchase price as represents rights which are attributable to a disqualifying pension credit.

(6)

Where the member becomes entitled to a scheme pension F5under a defined benefits arrangement, the applicable amount is—

$\frac{\mathrm{VULSR}}{\mathrm{VUR}}\times (\mathrm{LS}+\mathrm{AC})$

but subject to sub-paragraph (8).

(7)

In sub-paragraph (6)—

VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and

F6AC is—

1. (a)

   in a case where the member becomes entitled to the pension before reaching the age of 75, the amount crystallised by reason of the member becoming entitled to the pension, and

2. (b)

   in a case where the member becomes entitled to the pension after reaching that age, the amount that would have been so crystallised but for paragraph 2 of Schedule 32.

F7(7A)

Where the member becomes entitled to a scheme pension under a money purchase arrangement, the applicable amount is (subject to sub-paragraph (8))—

$\frac{\text{VULSR}}{\mathrm{VUR}}\times \left(\mathrm{LS}+\mathrm{SPPP}\right)$

where—

VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and

SPPP is the scheme pension purchase price.”