7(1)This paragraph applies where—
(a)the transferee dies after liability in respect of the pension compensation credit has been discharged under section 116,
(b)the transferee—
(i)was, before death, entitled under paragraph 6 to periodic compensation commencing at pension compensation age, or
(ii)would have become so entitled had he or she not died, and
(c)the transferee is survived by a widow, widower or surviving civil partner (“the surviving partner”).
(2)Subject to sub-paragraph (4), the surviving partner is entitled to periodic compensation commencing on the day following the transferee’s death and continuing for life.
(3)The annual rate of the periodic compensation at any time is—
(a)where the transferee dies after attaining pension compensation age, half of the annual rate of the periodic compensation (including the revaluation amount (see paragraph 8) and any increases under paragraph 17) to which the transferee would at that time have been entitled under paragraph 6 had the transferee not died;
(b)where the transferee dies before attaining pension compensation age, half of the annual rate of the periodic compensation (including the revaluation amount (see paragraph 8) and any increases under paragraph 17) to which the transferee would at that time have been entitled under paragraph 6 if—
(i)the transferee’s pension compensation age had been the transferee’s actual age immediately before the date of the transferee’s death, and
(ii)the transferee had not died.
(4)For the purposes of this paragraph, a person’s entitlement under paragraph 6 is to be determined disregarding paragraph 15(1)(b) (successful applicant for terminal illness lump sum loses entitlement to periodic compensation).
(5)The surviving partner is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.