(1) This section applies if:
(a) at the operative time, a retirement allowance is not payable to a person in respect of the original interest; and
(b) after the operative time:
(i) the retirement allowance becomes payable to the person; or
(ii) the person dies before the retirement allowance becomes payable and a spouse allowance becomes payable to a spouse of the person.
Reduction of allowances
(2) In working out the rate of the retirement allowance that is payable:
(a) work out the rate of the allowance under section 4 (disregarding subsection 4(4)); and
(b) reduce that rate to the amount calculated under the Allowance Orders.
(3) For the purposes of working out the rate of the spouse allowance under paragraph 4(3)(b), the rate applicable under paragraph 4(3)(a) is reduced to the amount calculated under the Allowance Orders.
Note: The rate of the spouse allowance may be reduced under subsection 4(4).
Effect of reduction of retirement allowance
(4) If:
(a) the rate of a retirement allowance payable to a person is reduced under subsection (2); and
(b) a spouse allowance later becomes payable because the person dies;
then, for the purposes of working out the rate of the spouse allowance under paragraph 4(3)(b), the rate applicable under paragraph 4(3)(a) is reduced to the amount calculated under the Allowance Orders.
Note: The rate of the spouse allowance may be reduced under subsection 4(4).