—(1) No pension, gratuity or other allowance which would be granted under this Act to an officer shall be so granted if, at the date of his retirement from the public service, the officer has been adjudged a bankrupt or declared insolvent by judgment of a court of competent jurisdiction, whether in Singapore or elsewhere, and has not obtained his discharge from such adjudication or declaration.
(2) If any person to whom a pension or other allowance has been granted under this Act is adjudicated a bankrupt or is declared insolvent by judgment of the court, whether in Singapore or elsewhere, then the pension or allowance shall immediately cease.
(3) In any case where —
by reason of bankruptcy or insolvency of an officer, a pension, gratuity or allowance is not granted; or
by reason of bankruptcy or insolvency of a pensioner, a pension or allowance ceases,
it shall be lawful for the relevant Pension Authority, from time to time, during the remainder of such person’s life, or during such shorter period or periods, either continuous or discontinuous, as the Pension Authority shall think fit, to cause all or any part of the moneys to which such person would have been entitled by way of pension, gratuity or allowance, had he not become a bankrupt or insolvent, to be paid to, or applied for the maintenance and personal support or benefit of, all or any (to the exclusion of the other or others) of the following persons in such proportions and manner as the Pension Authority thinks proper, and such moneys shall be paid or applied accordingly:
such person himself; and
any wife, child or children of his.
(4) Moneys applied under subsection (3) for the discharge of the debts of the officer or pensioner referred to in that subsection shall, for the purposes of that subsection, be regarded as applied for his benefit.
(5) When a person to whom a pension or allowance has not been granted or whose pension or allowance has ceased under this section obtains a full and proper discharge from his bankruptcy or insolvency, his pension or allowance shall be restored to him with effect from the date of such discharge.