Defence Services Pension Part V Regulations (SOR/55-416)

8 (1) A contributor or a former contributor in respect of whom a periodic scheme of payment of arrears of contributions is in effect, may, at any time, elect to pay those areas in one sum or in instalments equivalent in value to the arrears, over a shorter period.

(2) Where the amount of the arrears of contributions, as verified by the service authorities, is greater than the amount set out in the provisional computation submitted by the contributor, the contributor may elect, but only once, to pay the unpaid portion of the verified arrears

• (a) if he has originally elected to pay the arrears in one sum, then either in one sum or in instalments equivalent in value to the total amount of arrears; or

• (b) if he has originally elected to pay the arrears by instalments, then by instalments equivalent in value to the total amount of the arrears, over a longer period, provided that

  • (i) he has made his further election prior to acknowledging as correct the amount of the arrears, as verified by the service authorities, or

  • (ii) he has, prior to the first day of September, 1950, acknowledged as correct the amount of the arrears, as verified by the service authorities.

(3) Where, under this section, a contributor has elected to pay arrears of contributions under a periodic scheme of payment, the required instalments shall be computed as prescribed by section 7 provided, however, that the amount of such instalments shall not be reduced more than five per centum of the amount elected to be paid in the provisional computation submitted by the contributor.