(1) Any deduction made pursuant to section 2 (other than in respect of a person to whom subsection (1) (b) (iii) of that section relates) from the remuneration as a public servant of a person who ceases to be a public servant, to whom no superannuation benefit (including preserved benefit, within the meaning given by section 28 of the Pensions Act 1990) has accrued and whose service is not transferred to another public service body in accordance with arrangements approved by the Minister for the Environment, Heritage and Local Government or the Minister for Public Expenditure and Reform, shall not be treated as a deduction for the purposes of this Act.

(2) The person liable to account for any deduction referred to in subsection (1) shall repay it, as soon as practicable, to the person from whose remuneration it was deducted.

(3) If a person receives a repayment under subsection (2) on ceasing to be a public servant and subsequently wishes to have the service in respect of which that repayment was made reckoned for superannuation purposes, then -

(a) the person shall refund the repayment plus compound interest (in accordance with arrangements determined by the Minister) to the person who made the repayment to him or her, and