5.—(1) This paragraph applies where the Secretary of State accepts a lump sum election.
(2) Where the lump sum determined under paragraph 4 is paid to the Secretary of State within 1 month after the date on which the person who makes the election is notified that the election is accepted, the AP beneficiary is to be credited with the amount stated in the notice of the election.
(3) But where the AP beneficiary dies before the end of the refund period or an ill-health pension becomes payable to the AP beneficiary by virtue of the AP beneficiary becoming incapacitated before the end of that period—
(a)the lump sum must be repaid, and
(b)the AP beneficiary is not to be credited with an amount in respect of the election.
(4) Sub-paragraph (3) does not apply where before the end of the refund period an additional pension attributable to the election (calculated by reference to an amount credited in accordance with sub-paragraph (2)) became payable to the AP beneficiary with a retirement pension (other than an ill-health pension) or a phased retirement pension.