(1) Where:
(a) the liability of an eligible employee to make contributions under this Act has been deferred by virtue of section 54 of this Act; and
(b) before he or she has ceased to be liable to contribute under the Defence Force Retirement and Death Benefits Act or the MSB Act, he or she ceases to be an eligible employee and becomes entitled to pension under this Act by reason of retirement on the grounds of invalidity;
his or her entitlement to that pension is suspended until such time as he or she ceases to be liable to contribute under the Defence Force Retirement and Death Benefits Act or the MSB Act (as the case may be), but, if he or she dies before he or she so ceases to be liable to contribute under that Act, he or she shall, for the purposes of subsections 93(2), 106(1) and 108(1) of this Act, be deemed to have been in receipt of invalidity pension at the time of his or her death and, for the purposes of section 96 and subsection 106(3), the pension shall be deemed to have been payable at the rate at which pension would, but for this subsection, have been payable to him or her at that time.
(2) Where:
(a) the liability of an eligible employee to make contributions under this Act has been deferred by virtue of section 54 of this Act and:
(i) he or she ceases to be an eligible employee and, upon so ceasing, becomes entitled to pension under this Act by reason of retirement on the ground of invalidity and:
(A) he or she has been or is discharged from the Defence Force on the ground of invalidity or of physical and mental incapacity to perform his or her duties, section 36 of the Defence Force Retirement and Death Benefits Act applies to him or her and, in the opinion of CSC, the incapacity which was the ground for his or her retirement as an eligible employee is related to the ground on which he or she was discharged from the Defence Force; or
(B) he or she dies after ceasing to be an eligible employee but before being discharged from the Defence Force from causes that, in the opinion of CSC, are related to the incapacity which was the ground for his or her retirement as an eligible employee; or
(ii) he or she dies:
(A) before being discharged from the Defence Force; or
(B) after having been discharged from the Defence Force on the ground of invalidity or of physical or mental incapacity to perform his or her duties, from causes that, in the opinion of CSC, are related to the ground on which he or she was discharged from the Defence Force; and
(b) the rate of any pension payable to or in respect of him or her under this Act (including pension that became payable before he or she was discharged from the Defence Force) is less than the rate of any corresponding benefit that, but for section 36 or 46 of the Defence Force Retirement and Death Benefits Act, would be payable to or in respect of him or her under that Act;
CSC may increase the rate of the pension payable under this Act to such extent as it considers appropriate in the circumstances.
(3) Where:
(a) the liability of an eligible employee to make contributions under this Act has been deferred by virtue of section 54 of this Act; and
(b) at any time after the death of the person benefit under the Defence Force Retirement and Death Benefits Act would, but for section 36 or 46 of that Act, be payable in respect of him or her under that Act but no pension is payable in respect of him or her under this Act at that time;
CSC may pay such benefit corresponding to the benefit under that Act as he or she considers appropriate in the circumstances.
(4) An eligible employee who is liable to contribute under the Defence Force Retirement and Death Benefits Act shall, for the purposes of this section, be deemed not to have ceased to be liable to so contribute by reason only of the operation of section 18 of that Act in relation to him or her.