The provisions of paragraphs (2) and (3) of this regulation specify the prescribed conditions for the purposes of regulation 3.

The first condition is that the person is not, in respect of the event that has given rise to the reduction of remuneration, entitled to have his case considered for the payment of compensation under any instrument within the meaning of Part I of Schedule 2 to the 1979 Regulations or in terms of the 1994 Regulations, nor is he entitled to payment of compensation or, as the case may be, entitled to have his case considered for the payment of compensation in terms of the 1995 Regulations.

The second condition is that the person has at the date when the reduction of remuneration occurs, not attained the age of 65.

For the purposes of paragraph (3) of this regulation and regulation 5, reduction of remuneration occurs on the date when the eligible employee to whom these Regulations apply commences employment with the new authority at a lower annual rate of remuneration than that paid by the old authority or, as the case may be, on the date when any reduction in the annual rate of remuneration payable by a new authority takes effect.