Paragraph 26
This paragraph applies where the person paying the contributions (P) becomes entitled to payment of retirement benefits by virtue of Case D applying to P's reckonable service.
Where this paragraph applies—
P may, by giving written notice to the Secretary of State within 3 months after the end of P's pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during the remainder of the payment period,
if P does so elect, on payment of the lump sum, contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made, and
if P does not so elect contributions are to be treated as having been paid in respect of K x L/M, where—
K is the period of non-qualifying service in respect of which the original election was made,
L is the period during which contributions were paid, and
M is the payment period.