(1) Subject to paragraph (3), for the purposes of section 95B(3)(c) of the 1974 Act, the compensatory amount is the amount given by the following formula -

A - B - C - D

(2) The following apply for the purposes of the formula in paragraph (1) -

"A" means the expected plan interest;

"B" means the replacement interest;

"C" means the administration amount; and

"D" means -

(a) where full early settlement takes place or is to take place, zero; or

(b) where partial early settlement takes place or is to take place, the actual plan interest.

(3) If the amount given by the formula in paragraph (1) is zero or less, for the purposes of section 95B(3)(c) of the 1974 Act, the compensatory amount is zero.