2.—(1) The annual amount of the policeman’s notional deferred pension, disregarding any reduction therein at state pensionable age, shall be multiplied by the appropriate factor specified in the second column of the Table or, in the case of a woman, in the fifth column thereof.
(2) Where the policeman’s notional deferred pension would fall to be reduced under paragraph 1 of Part VII of Schedule B (reduction connected with state flat-rate benefit), the product under sub-paragraph (1) shall be reduced by an amount equal to the annual amount of that reduction multiplied by the appropriate factor specified in the third column of the Table or, in the case of a woman, in the sixth column thereof.
(3) In the case of a policeman entitled to reckon pensionable service, immediately before he ceased to be a member of his former force, by reason of a participating period of relevant employment, the product under sub-paragraph (1) shall be reduced by an amount equal to the annual amount by which the policeman’s notional deferred pension would fall to be reduced under paragraphs 2 and 3 of Part VII of Schedule B (reduction connected with state graduated retirement benefit) multiplied by the appropriate factor specified in the third column of the Table or, in the case of a woman, in the sixth column thereof.
(4) For the purposes of sub-paragraph (3) a period shall be treated as a participating period of relevant employment notwithstanding that a payment in lieu of contributions only fell to be made after the policeman ceased to be a member of his former force.
(5) The product under sub-paragraph (1), subject to any reduction under sub-paragraphs (2) and (3), is in paragraph 5 referred to as the basic element of the transfer value.