25

25 Reduction in rate of pension

(1) Subject to subsection (2), where a person was, immediately before the commencing date, in receipt of a pension (not being a service pension) under a repealed Act the rate of which was reduced in accordance with subsection 24(1), 101(1), 107C(6) or 107Q(3) of the Repatriation Act, the amount of that deduction shall not be increased on or after the commencing date, by reason of the application of section 26 of the Veterans’ Entitlements Act to and in relation to that pension. (2) Where: (a) a person is in receipt of a pension to which subsection (1) applies; and (b) the amount of the periodical payments received by the person under a law of a foreign country or of a State has been increased, or a lump‑sum payment has been so received, since the amount of that reduction was calculated or last calculated; the amount of the reduction shall be re‑calculated in accordance with the provisions of section 26 of the Veterans’ Entitlements Act and, if the amount of the reduction as so re‑calculated exceeds the amount of the reduction immediately before the commencing date, that pension shall be reduced by the amount of the reduction as so re‑calculated and subsection (1) of this section ceases to apply to the pension but, in any other case, subsection (1) continues to apply to the pension. (3) Where a pension is granted to a person under Part II or IV of the Veterans’ Entitlements Act and payment of the pension from a date before the commencing date is approved, the person shall be deemed to have been in receipt of that pension immediately before the commencing date for the purposes of subsection (1).