9.—(1) Schedule 2 (determination of annual and initial payments) is amended in accordance with this regulation.
(2) In paragraph 4(5)(b)(ii) and (7)(b)(ii) and paragraph 5(8)(b)(ii) and (10)(b)(ii), for “or (3)”, in each place it occurs, substitute “, (3) or (3C) or 17C”.
(3) After paragraph 5 (survivors of qualifying members) insert—
5A.—(1) This paragraph applies where a qualifying member is entitled to an annual payment in accordance with regulation 17C for a period during which that member has previously received a relevant payment.
(2) The annual payment payable to a qualifying member to whom this paragraph applies is determined in accordance with this Schedule.
(3) For any period for which an annual payment under regulation 17C is due to be paid and a relevant payment has previously been paid, the relevant payment is treated as a payment on account of the annual payment under regulation 17C.
(4) Where the amount of the relevant payment so treated equals the amount of the annual payment payable under sub-paragraph (2), no further payment under regulation 17C is due to the qualifying member.
(5) In this paragraph, “relevant payment” means a payment in accordance with these Regulations other than a payment for a survivor by virtue of regulation 17(4), 17A(3), 17B(2)(b) or 18(4).”.
(4) In paragraph 9(2) and (4), after “regulation 17”, in each place it occurs, insert “or 17C”.
(5) In paragraph 10(ba), for “regulation 17(2) and (3)” substitute “regulation 17(2), (3) or (3C) or 17C”.