The following section is inserted after section 35 of the Principal Act:

"Minimum Value of Contributory Retirement Benefit.

35A.

(1) Where the service in relevant employment of a member of a contributory scheme terminates after 1 June 2002 -

(a) at or after normal pensionable age, or

(b) within five years before normal pensionable age,

and the member is entitled under the rules of the scheme to a contributory retirement benefit, the amount of the contributory retirement benefit shall, if necessary, be increased so that its actuarial value is not less than the minimum value calculated in accordance with Part C of the Second Schedule.

(2) No part of the amount of any increase to a contributory retirement benefit to be made under subsection (1) shall be provided by reducing the amount of any other benefit payable under the rules of the scheme concerned.

(3) Any increase in contributory retirement benefit arising under subsection (1) shall be payable out of the resources of the scheme.

(4) Except as provided for in this Part, a contributory retirement benefit increased under subsection (1) shall be payable in accordance with, and subject to, the rules of the scheme, being the rules as at the date of the termination of the relevant employment.".