8A

Sub-paragraphs (1) to (8) have effect subject to the following—

a

if—

i

paragraph 1A or 1B applies to the lump sum,

ii

the lump sum is paid more than 6 months before the day on which the member becomes entitled to it,

iii

a contract for a lifetime annuity is entered into to provide the pension in connection with which the lump sum is paid, and

iv

on or after 19 March 2014 the contract is cancelled,

the applicable amount is one third of the annuity purchase price that would have been given by sub-paragraphs (4) to (5) in the case of that annuity had the contract not been cancelled, and

b

if—

i

paragraph 1A or 1B applies to the lump sum,

ii

the lump sum is paid more than 6 months before the day on which the member becomes entitled to it, and

iii

paragraph (a) does not apply,

the applicable amount is one third of the sums, plus one third of the then market value of the assets, held at the time the lump sum is paid for the purpose of providing the pension at that time expected to be the pension in connection with which the lump sum is paid.

8B

For the purposes of sub-paragraph (8A)(a)(ii), the member is treated as not having become entitled to a pension as a result of the cancelled contract having been entered into.