14Commutation of pensions on or after 1 July 1973

14 Commutation of pensions on or after 1 July 1973

(1) Section 74 of the Defence Forces Retirement Benefits Act 1948 does not authorize the commutation of a pension in so far as the pension has been increased by virtue of this Part. (2) Where, on or after 1 July 1973, a portion of the pension of a person who is entitled to an increase in the rate of his pension under this Part is commuted, then, as from the date on which that portion of his pension is so commuted, the annual amount of his pension shall be reduced to such an amount as would, upon the date that is the relevant date in relation to the date on which that portion of his pension is commuted, have been the annual amount of his pension if he had commuted that portion of his pension on 29 June last preceding the relevant date. (3) In this section, a reference to the relevant date, in relation to the date on which a portion of a pension is commuted, shall be read as a reference: (a) if that portion of the pension is commuted during the year commencing 1 July 1973—to that date; (b) if the re‑classification has effect from a date occurring during the year commencing 1 July 1974—to 1 July 1974; or (c) if the re‑classification has effect from 1 July 1975 or a later date—to 1 July 1975.