38.—(1) A member exercising an option under regulation 34 or 36 must do so by giving notice in writing to the employing authority, giving such information as may be required and must, at the same time, provide the Department with a copy of that notice.
(2) An employing authority exercising an option under regulation 37 must do so by giving notice in writing to the Department, giving such information as may be required.
(3) An option under regulation 34, 36 or 37 may not be exercised during a period whilst the member is absent from work for any reason.
(4) For the purposes of this Part—
(a)a member is treated as exercising an option under regulation 34 or 36 on the date on which the employing authority receives the member’s notice under paragraph (1), and
(b)an employing authority is treated as exercising an option under regulation 37 on the date on which the Department receives the authority’s notice under paragraph (2).
(5) The Department may refuse to accept an option exercised under regulation 34, 36 or 37 and must do so if not satisfied that—
(a)the member is in good health, and
(b)in the case of an option exercised under regulation 34, there is no reason why the member’s health should prevent the member from paying the contributions for the whole contribution period.
(6) If the Department refuses to accept such an option—
(a)the Department must give notice in writing of that fact—
(i)in the case of an option exercised under regulation 34 or 36, to the member, and
(ii)in the case of an option exercised under regulation 37, to the employing authority and the member, and
(b)this Part applies as if the option had not been exercised.
(7) This Part also applies as if an option under regulation 36 or 37 had not been exercised if—
(a)in the case of an option under regulation 36, the payment is not received by the employing authority—
(i)before the end of the period of 1 month beginning with the day on which the Department notifies the member of the acceptance of the option, or
(ii)if it is earlier, on or before the member’s 65th birthday, and
(b)in the case of an option under regulation 37, the payment is not received by the Department—
(i)before the end of the period of one month beginning with the day on which the authority gave the Department notice under paragraph (2), or
(ii)if it is earlier, on or before the member’s 65th birthday.