7.—(1) Regulation 31(1) (paying authorities) is subject to the following provisions.
(2) In the case of an eligible person whose former employment was educational employment, compensation shall, subject to sub-paragraphs (3) to (5), be paid—
(a)in the case of employment within paragraph 2(a) or (b), by the local education authority;
(b)in the case of employment within paragraph 2(c), by the Secretary of State;
(c)in the case of employment within paragraph 2(d), by the corporation; and
(d)in the case of employment within paragraph 2(e), by the governing body of the institution.
(3) Where the former employment was of the kind specified in paragraph 2(c), the Secretary of State may—
(a)require the governing body of the school to repay him any amounts paid by him in respect of compensation;
(b)accept from the governing body a single payment of a sum equal to the actuarial value of the total compensation payable; or
(c)accept from them the payment of such a sum by not more than five annual instalments.
(4) Where—
(a)the former employment was of a kind specified in paragraph 2(d) or (e); and
(b)in consequence of any amalgamation, merger or other arrangement the institution becomes part of another (“the successor establishment”) and ceases to have a separate governing body,
the governing body of the successor establishment becomes the paying authority.
(5) Where—
(a)the former employment was of a kind specified in paragraph 2(d) or (e); and
(b)the institution closes and there is no successor establishment,
the Secretary of State becomes the paying authority.