The Principal Act is amended -

(a) in section 40, by inserting the following after the definition of "funding standard":

" ‘index-linked benefits’ means benefits which, under the rules of a scheme, are increased while in payment at a rate wholly or partly linked to increases in an index of the cost of living or of wages or salaries or increases in salaries actually or notionally payable to serving employees in the relevant employment;",

(b) in section 41(2)(c) (as amended by the Social Welfare and Pensions Act 2005), by inserting ", (3A), (3B) " after "subsections (3) ",

(c) in section 46(1) -

(i) in paragraph (a), by deleting "and",

(ii) in paragraph (b), by substituting "section 44(a)(v), and" for "section 44(a)(v).", and

(iii) by inserting the following after paragraph (b):

"(c) notwithstanding anything contained in the rules of a relevant scheme, may assume that the liabilities of the scheme in respect of index-linked benefits on winding up in respect of any persons who are receiving benefits or have reached normal pensionable age are equal to the actuarial value of benefits with fixed rate increases where those fixed rate increases are calculated in accordance with any applicable guidance issued by the Society of Actuaries in Ireland in relation to the preparation of actuarial funding certificates in accordance with section 42.",

and