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5. Regulation E9 of the principal Regulations is amended—
(a)by substituting for paragraphs (1) and (2) the following:
“(1) Subject to paragraph (2), the annual rate of a children’s short-term pension is the rate at which a widow’s short-term pension would have been payable by virtue of regulation E5(1) or, as the case may be, the rate at which a widower’s short-term pension would have been payable under that regulation if regulation E6(3)(a) were disregarded.
(2) Where a widow’s short-term pension is payable by virtue of regulation E5(5) or a widower’s short-term pension is payable by virtue of regulation E5(1), and the child is in the care of the widow or widower, the children’s short-term pension rate specified in paragraph (1) is reduced by the rate of that pension.”;
(b)in paragraph (3), by substituting for the words “widow” and “widow's” in each place where they occur the words “widow or widower” and “widow’s or widower's” respectively;
(c)in paragraph (4)—
(i)by inserting at the beginning the words “Subject to paragraph (4A)”;
(ii)in sub-paragraph (a), by substituting for the words “in a local government employment” the words “a pensionable employee”;
(iii)in sub-paragraph (b), by inserting after the words “preserved benefits” the words “, or was at that time in a local government employment and would have been so entitled if he had ceased to hold that employment immediately before that time,”;
(d)by inserting after paragraph (4) the following:
“(4A) Unless the retirement pension determined under paragraph (4) would be greater, the retirement pension of a deceased person shall be taken to be that to which he would have been entitled if he were entitled to reckon the lesser of—
10 years' reckonable service;
the reckonable service which he would have been entitled to reckon if he had continued to be employed until his 65th birthday.”.
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