(1) Any provision of a scheme -

(a) providing for the forfeiture of a preserved benefit or of a minimum contributory retirement benefit, or

(b) enabling the employer of a member to exercise a lien on the member's preserved benefit or a member's minimum contributory retirement benefit,

shall be disregarded for the purpose of this Part.

(2) Notwithstanding paragraph (a) of subsection (1) where a member of a scheme or such other person who is entitled to preserved benefit or a contributory retirement benefit is or becomes bankrupt (within the meaning of the Bankruptcy Act, 1988), or assigns or charges or attempts to assign or charge the benefit, the trustees of the scheme may, at their discretion, apply any provision of the scheme, under which a benefit may be forfeited and paid, to the member or such other person specified in the provision.