7. (1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—N.I.
(a)a person is entitled to present payment of a lump sum under the admissible rules of the scheme ( “the scheme lump sum”),
(b)payment of that lump sum is postponed, and
(c)he has attained normal pension age in relation to the lump sum.
(2) That person is entitled to compensation in the form of a lump sum of an amount equal to 100% of the amount of the scheme lump sum which would have been payable had the postponement ceased immediately before the assessment date.
(3) The compensation is payable at the assessment date.
(4) Where the scheme lump sum is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.
(5) This paragraph does not apply in relation to a lump sum to which a person is entitled by reason of commuting any part of a pension under the scheme.
(6) This paragraph is subject to paragraph 30 (power of Department to change percentage rates by order).