26.—(1) If a person to whom retirement compensation is or will be payable dies before he has received by way of retirement compensation sums which in the aggregate are equivalent to the amount of any contributions repaid by him under regulation 21, together with compound interest thereon up to the date of his death calculated at the rate and in the manner specified in the last relevant pension scheme (or where no rate is so specified at the rate of 3 per cent. per annum with half-yearly rests as from 1st April or 1st October next following the half-year in which the amount was repaid), and no pension or gratuity falls to be paid to his personal representatives, or to his widow, or any dependant of his, by reason of his having been immediately or prospectively entitled to retirement compensation, there shall be paid to his personal representatives the difference between the aggregate amount which he has received by way of retirement compensation as aforesaid and the said equivalent sum with interest.
(2) For the purposes of this regulation a person who has surrendered any part of his retirement compensation under regulation 25 shall be deemed to have received during any period the amount of compensation for that period which he would have received but for any such surrender.