459. Deduction of contributions equivalent premium from refund of scheme contributions.

The following provisions apply where:

  1.  

    (1)     an earner's1 service in contracted-out employment2 ceases or his employment3 ceases to be contracted-out employment4; and

  2.  

    (2)     he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him towards the provision of benefits, under the scheme by reference to which that employment was contracted-out5; and

  3.  

    (3)     a contributions equivalent premium6 falls to be paid by any person in respect of him7.

In those circumstances, and subject as follows, the person by whom the premium falls to be paid

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