12.—(1) Where the conditions in paragraph (2) are met, a person’s basic entitlement shall, if necessary, be reduced so that the total of the annual rates for the time being of—
(a)any occupational pension to which the person is entitled and which is being paid;
(b)his pension under regulation 26 of the Pension Regulations; and
(c)his annual compensation,
is not more than the relevant amount.
(2) The conditions are—
(a)that immediately before the termination date the person was entitled to an occupational pension in respect of any period (whether or not it was being paid); and
(b)that the total of that period, his total membership and any credited period is more than 40 years.