10.—(1) This paragraph applies where an ill-health pension becomes payable to the AP beneficiary of the election mentioned in paragraph 6 before the end of the payment period or, if the refund period ends after the payment period, by virtue of the AP beneficiary becoming incapacitated before the end of the refund period.
(2) But this paragraph does not apply where before the ill-health pension becomes payable—
(a)an additional pension attributable to the election became payable to the AP beneficiary (see paragraph 7),
(b)the AP beneficiary revoked the election (see paragraph 8), or
(c)except where paragraph 9(5) applies, the AP beneficiary was out of pensionable employment for a continuous period of at least 1 month (see paragraph 9).
(3) Where the AP beneficiary becomes incapacitated before the end of the refund period—
(a)the monthly payments must be repaid to the AP beneficiary, and
(b)the AP beneficiary is not to be credited with an amount in respect of the election.
(4) This sub-paragraph applies where the AP beneficiary becomes incapacitated after the end of the refund period.
(5) Where sub-paragraph (4) applies, the AP beneficiary is to be credited with—
(a)if the declaration required by paragraph 2(5)(d) was made in good faith, the amount stated in the notice of the election, or
(b)if that declaration was not made in good faith, an amount determined by the Secretary of State having regard to the contributions paid.
(6) Where sub-paragraph (4) applies, the AP beneficiary is, while in receipt of the ill-health pension, to be treated as having paid the contributions which would, but for paragraph 6(6)(a), have been payable.