Paragraph 3

Where, for the current year, the amount in respect of principal for the purposes of paragraph 15(1)(a) of Schedule 3 to the 1989 Act falls to be determined in relation to the designated authority in accordance with regulation 26(7) of the 1990 Regulations, the amount of the component in respect of principal calculated for that year in accordance with paragraph 2 above shall be reduced by such amount in respect of the designated authority’s commutation adjustment in respect of that year as the designated authority and the participant authority may agree or, in default of such agreement, as the designated authority may determine.