For members of pension funds with pension plans which, at the end of 1982, were not tariff-based and for which pension disbursements have not yet commenced, the part of the provisions which is exempt under Section 10(2), Item 1 of PAL is allocated on the basis of the present value of the commitment made in relation to the individual member.

The present value is multiplied by the ratio between the number of years that the relevant member had been a member of the pension fund at the end of 1982 and the number of years that the relevant member has been a member of the pension fund at the time when pension disbursements would normally commence.

The pension fund can instead choose to allocate the provisions on the basis of the present value of the pension provider's commitment in relation to individual pension holders less the present value of future ordinary contributions; however, no less than the present value of the ordinary contributions paid for the member less risk premium.