81.—(1) Where at any time before the appointed day a gratuity or allowance, by way of periodical payment or an annuity—
(a)has been granted to any person by any authority on his ceasing to be employed by them; or
(b)has been granted to the widow or other dependant of a person who died while in or after leaving the employment of any authority,
and, if payment in respect of the gratuity or allowance had continued in accordance with the terms of the grant or any subsequent increase, one or more payments would have been made on or after the appointed day (whether under legal obligation or otherwise) by a dissolved authority, those payments shall be made by the specified authority.
(2) Without prejudice to paragraph (1), where, if the order had not been made, any dissolved authority would for the purposes of any statutory provision relating to pensions have been the employing authority or former employing authority in relation to a person who died before the appointed day while in the employment of, or otherwise ceased to be employed by, any authority, or the widow or other dependant of such a person, the specified authority shall be treated as being at that time the employing authority or former employing authority for those purposes in relation to that person, his widow or other dependant.
(3) In paragraphs (1) and (2), “the specified authority” means
(a)if the person described in (a) or (b) of paragraph (1) or in paragraph (2) was—
(i)in the case of a person who died while in the employment of the authority, last employed before he died; or
(ii)otherwise, last employed before he ceased to hold the employment referred to,
exclusively in the discharge of functions in relation to any area transferred by the order and those functions are, on and after the appointed day, exercisable in relation to that area by an authority other than the residuary successor of the dissolved authority, that other authority; and
(b)otherwise, the residuary successor of the dissolved authority.