(1) Subject to section 33, where a member of the scheme who is entitled to invalidity benefit and is classified as Class C under section 30 (whether on his retirement or by reason of his having been reclassified under subsection 34(1)) would, if at the time when he was retired on the ground of invalidity or of physical or mental incapacity to perform his duties, he had retired on other grounds, have been entitled to retirement pay, the member is entitled:
(a) if the member does not make an election under subsection 124(1)--to invalidity pay at the rate at which retirement pay would have been payable to the member if the member had not made an election under subsection 124(1) in respect of the retirement pay; or
(b) if the member makes an election under subsection 124(1)--to invalidity pay at the rate at which retirement pay would have been payable to the member if the member had made an election under subsection 124(1) in respect of the retirement pay.
(2) Where subsection (1) does not apply to a member of the scheme who is entitled to invalidity benefit and is classified as Class C under section 30 (whether on his retirement or by reason of his having been reclassified under subsection 34(1)), the member is entitled to a lump sum payment of an amount worked out under subsection (3).
(3) The amount of the lump sum payment referred to in subsection (2) is:
(a) if paragraph (b) does not apply--a lump sum payment equal to 1.5 times the amount of the member's contributions; or
(b) if the member makes an election under subsection 124(1)--a lump sum payment equal to the difference between:
(i) the lump sum payment referred to in paragraph (a); and
(ii) the member's surcharge deduction amount.