(1) Notwithstanding anything contained in this Act, if a person entitled to a pension under this Act is, on retirement, requested by the Service Board to serve on the Reserve maintained by the Service of which the person was a member and the person:
(a) does not agree so to serve; or
(b) having agreed so to serve, is released at his or her own request from the agreement;
there shall, subject to subsection (2), be deducted from each fortnightly instalment of the pension (other than an instalment that becomes payable on or after 1 October 1972) an amount of $4 if the person is a male or $2 if the person is a female.
(2) The sum of the deductions made from instalments of the pension of a person under subsection (1) shall not exceed:
(a) if the person has not agreed to serve on the Reserve--$400 if the person is a male or $200 if the person is a female; or
(b) if the person has agreed to serve on the Reserve but is released at his or her own request from the agreement--such amount as the Board determines, being an amount that does not exceed $400 if the person is a male or $200 if the person is a female.
(3) Where, under this section, an amount is deducted from a payment of pension to a person, the amount that, but for this subsection, the Commonwealth would be required to pay to the Fund under this Act in respect of the payment shall be such amount as the Commonwealth would have been required to pay if the deduction had not been made less the amount of the deduction.