(1) Chapter 1 of Part 30 of the Principal Act is amended -

(a) in section 772(3A) by substituting the following for paragraph (a):

"(a) Subject to paragraph (aa), the Revenue Commissioners shall not approve a retirement benefits scheme for the purposes of this Chapter unless it appears to them that the scheme provides for any individual entitled to a pension under the scheme or, as the case may be, where the pension or part of the pension is payable in accordance with a pension adjustment order, the spouse or former spouse of such an individual to whom the pension or part of the pension is so payable (in this subsection referred to as the 'relevant individual'), to opt, on or before the date on which that pension would otherwise become payable, for the transfer, on or after that date, to -

(i) the relevant individual, or

(ii) an approved retirement fund,

of an amount equivalent to the amount determined by the formula -

A - B

where -

A is the amount equal to the value of the relevant individual's accrued rights under the scheme (including accrued rights which relate to additional voluntary contributions under the scheme) exclusive of any lump sum paid in accordance with subsection (3) (f), and