Regulation 20 of the 1982 Regulations is amended by substituting for paragraphs (2) and (3) the following:
(2) In the case of an eligible person whose former employment was of a kind specified in column 1 of Part 2 of Schedule 1, compensation shall, subject to paragraphs (3) to (3C), be paid by the paying authority ascertained from column 3.
(3) Where —
(a) the former employment was of a kind specified in paragraph 4, 5, 6 or 7 of Part 2 of Schedule 1, and
(b) in consequence of any amalgamation, merger or other arrangement the institution becomes part of another (the “successor establishment”) and ceases to have a separate governing body,
the governing body of the successor establishment becomes the paying authority.
(3A) Where —
(a) the former employment was of a kind specified in paragraph 4 or 5 of Part 2 of Schedule 1, and
(b) the institution closes and there is no successor establishment,
the local education authorities who provided the institution with assistance become, jointly, the paying authority, and each is to meet that proportion of the cost which the aggregate of the assistance it provided during the three years preceding the closure bears to the aggregate of the assistance provided by them all.
(3B) Where —
(a) the former employment was of a kind specified in paragraph 6 or 7 of Part 2 of Schedule 1, and
(b) the institution closes and there is no successor establishment,
the Secretary of State becomes the paying authority.
(3C) Where the former employment was of the kind specified in paragraph 3 of Part 2 of Schedule 1, the Secretary of State may —
(a) require the governing body of the school to repay him any amounts paid by him in respect of compensation, or
(b) accept from the governing body a single payment of a sum equal to the actuarial value of the total compensation payable, or
(c) accept from them the payment of such a sum by not more than five annual instalments.