(1) Where the service in relevant employment of an outgoing worker of a scheme is terminated and the outgoing worker is not, at the time of the termination, entitled to a preserved benefit under a scheme, the outgoing worker shall be entitled to receive a refund in the manner specified in subsection (2) of the contributions paid to the scheme by, or on behalf of, the outgoing worker.

(2) For the purposes of the refund referred to in subsection (1), the trustees of the scheme shall-

(a) in the case of a defined benefit scheme, refund the outgoing worker the pension contributions paid by or on behalf of the outgoing worker, or

(b) in the case of a defined contribution scheme, refund the outgoing worker-

(i) the sum of the contributions paid by, on behalf of, and in respect of the outgoing worker, whether the contributions were paid by that outgoing worker or the employer, or by both of them, or

(ii) the value of the investments arising from the contributions paid by, on behalf of, and in respect of the outgoing worker whether the contributions were paid by that outgoing worker or the employer, or by both of them.

(3) Where the rules of a scheme provide for a refund of an amount that is greater than the amount of-