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26. After regulation G3 of the principal Regulations there shall be added the following regulation:–
G4. In the case of a person who is entitled to preserved benefits to which he became entitled by virtue of regulation E2(1)(c) of the 1974 Regulations as applied by Part K of those Regulations–
(a)the preserved benefits are subject to reduction, but
(b)on return to local government employment previous service becomes reckonable on repayment of returned contributions,
as if regulations K1(5), D1(2) (with the substitution for “the appointed day” of “16th May 1974”) and D1(3) of the 1974 Regulations had continued to have effect.”.
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