Gratuity and reduced pension

(1) Any person who is eligible for a pension under this Act may, at his option exercisable in accordance with section 7 of this Act, be paid, instead of a pension at the rate provided for in section 8 of this Act, a reduced pension at the rate of three- fourths of such pension together with a gratuity equal to twelve and one-half times the amount of the reduction so made in the 12 (2) Where a person ceases to be a legislator after satisfying the requirement of section 5 (1) (a) of this Act but has not attained the age specified in section 5 (1) (c) (i) of this Act, then, if he exercises an option to receive a reduced pension and gratuity within three months of his ceasing to be legislator, he shall, notwithstanding section 5 of this Act, be paid commuted gratuity on his ceasing to be legislator but pension shall be paid with effect from the date on which he attains the age specified in section 5 (1) (c) (i) of this Act if at that date, (a) he has not applied for or received a refund of contributions under section 13 of this Act; and (b) he is not otherwise disqualified for the payment of a pension under this Act.