7. In section 94 (variation and loss of rights to cash equivalents)—
(a)in subsection (1), after “occupational pension scheme” insert “other than a salary related scheme”,
(b)after that subsection insert—
“(1A) Regulations may provide that a member of a salary related occupational pension scheme who continues in employment to which the scheme applies after his pensionable service in that employment terminates—
(a)acquires a right to only part of his guaranteed cash equivalent, or
(b)acquires no right to his guaranteed cash equivalent;”,
(c)in subsection (2), after “(1)” insert “or (1A)”, and
(d)in subsection (3)—
(i)in paragraph (a), after “occupational pension scheme” insert “other than a salary related scheme”, and
(ii)for paragraph (b) and the “and” immediately preceding it substitute—
“or
(aa)by virtue of regulations under subsection (1A) or (2), a member of a salary related occupational pension scheme does not, on such termination, acquire a right to the whole or any part of his guaranteed cash equivalent,
and his employment terminates at least one year before normal pension age”.