The Principal Act is hereby amended by the substitution for section 48 (inserted by section 57 of the Social Welfare Act, 1992) of the following section:

"Priorities on winding up of relevant scheme.

48.

(1) In applying the resources of a relevant scheme which has been wound up after the 1st day of January, 1997 -

(a) the trustees shall discharge the liabilities of the scheme for the following benefits in the following order -

(i) firstly, the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons, who, at the date of the winding up, were within the categories referred to in that paragraph, to the extent that they are not already discharged, and

(ii) secondly, the benefits specified in paragraphs 2 and 3 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up, were within the categories referred to in those paragraphs, to the extent that they are not already discharged,

before discharging the liabilities of the scheme for other benefits, and

(b) the trustees may discharge, notwithstanding anything contained in the rules of the scheme and without the consent of the member concerned, the liability of the scheme for benefits payable to or in respect of any member by -

(i) making a payment to another funded scheme which provides or is capable of providing long service benefit and of which he is a member or a prospective member, or