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26.—(1) This Regulation shall apply to a person who, after suffering loss of office as a member of a police force or diminution of emoluments, enters employment in which he is subject to a pension scheme and thereafter a superannuation benefit becomes payable to or in respect of him under that scheme for the purposes of which service is reckonable—
(a)by virtue of any reckonable service by reference to which any long-term compensation payable to him falls to be assessed; or
(b)by virtue of any pensionable service which is taken into account for the purposes of any award or notional award under the Police Pensions Regulations, by reference to which the amount of any retirement compensation or compensation payable on death, payable to or in respect of him, falls to be assessed.
(2) The compensating authority may adjust the long-term compensation, retirement compensation or compensation payable on death, as the case may be, payable to or in respect of a person to whom this Regulation applies, by withholding or reducing the compensation in accordance with this Regulation, in respect of any period for which the benefit mentioned in the preceding paragraph is payable.
(3) If the part of any superannuation benefit by way of annual amounts which is attributable to a period of service reckonable as mentioned in paragraph (1) of this Regulation equals or exceeds the part of any compensation which is attributable to the reckonable or pensionable service so mentioned, that part of the compensation may be withheld, but if such part of the superannuation benefit is less than such part of the compensation, the compensation may be reduced by an amount not exceeding such part of the superannuation benefit.
(4) Where retirement compensation is payable to a person to whom this Regulation applies who had attained the age of forty years at the date of loss of office or diminution of emoluments, then, if the compensation is assessed by reference to his notional pension calculated in accordance with Regulation 21 of these Regulations, the compensation may be reduced by that part thereof as is attributable to the additional period of pensionable service referred to in paragraph (2) of the said Regulation or by so much of that part as appears appropriate to the compensating authority, having regard to—
(a)the proportion that additional period of pensionable service bears to the period of subsequent employment mentioned in paragraph (1) of this Regulation; and
(b)the provisions under which service is reckonable for the purposes of the relevant pension scheme as mentioned in paragraph (1)(b) of this Regulation.
(5) Where compensation has been calculated in accordance with Regulation 20 of these Regulations, the provisions of this Regulation shall apply only in relation to such part (if any) of the superannuation benefit as is attributable to annual emoluments in excess of those to which the person concerned was entitled on entering the new employment referred to in the said Regulation 20.
(6) Where compensation is payable in respect of diminution of emoluments, the provisions of this Regulation shall apply only in relation to such part (if any) of the superannuation benefit as is attributable to annual emoluments in excess of those to which the person concerned was entitled immediately prior to the diminution.
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