Paragraph 1

(1)

A declaration shall specify–

(a)

the part of the retirement pension allocated; and

(b)

the alternative benefit it shall provide.

(2)

The part allocated, to be expressed as a whole number of pounds, shall not exceed the lower of–

(a)

1/3 of the annual rate of the retirement pension, disregarding any actuarial reduction required by regulation E7(4) (actuarial reduction of pension on early retirement) and any National Insurance modification under Schedule 9; and

(b)

the amount that would result in the reduction of that rate to less than the rate of, as the case may be, the annuity mentioned in regulation E14(2)(a) or the subsequent annuity mentioned in regulation E14(2)(b),

and shall not be such as to effect any equivalent pension benefits.

(3)

The part allocated must not be such as to cause the retirement pension payable to be less than the guaranteed minimum.