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1.—(1) There shall be deducted from the amount of the annual allowance payable at the material date to the entitled officer an amount calculated in accordance with the formula:
A × B × DorE(whichever is the lesser).
(2) Where a lump sum has been paid in respect of the further employment, there shall be deducted from the annual allowance an additional amount calculated in accordance with the formula:
A × C × DorE(whichever is the lesser).
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