31.—(1) The powers conferred by this paragraph are exercisable in relation to cases where—
(a)immediately before the assessment date, a person (“the pensioner”) is entitled to present payment of a pension under the scheme rules (“the pre-assessment date pension”), but
(b)the effect of disregarding rules within paragraphs (a) and (b) of paragraph 35(2) is that the pensioner is not entitled to compensation under paragraph 3(2) by reason of the pension or a part of the pension.
(2) Regulations may provide—
(a)for the pensioner to be treated, for the purposes of the pension compensation provisions, as entitled, immediately before the assessment date, to present payment of a pension under the admissible rules, and
(b)for the compensation payable under paragraph 3 in respect of that pension to be determined in the prescribed manner and, for this purpose, for any provision of this Schedule to be applied with such modifications as may be prescribed.
(3) Regulations may also provide, in cases where—
(a)the pensioner is not treated as entitled to present payment of a pension by virtue of regulations under sub-paragraph (2), but
(b)he is or may become entitled to compensation in respect of the pre-assessment date pension otherwise than under paragraph 3,
for any provision of this Schedule to apply with such modifications as may be prescribed.