Subject to subsection (3) of this section, where a beneficiary was granted a benefit at a reduced rate during the specified period by reason of any debt insurance payment or health or disability insurance payment or income-related insurance payment, as the case may be, made to the beneficiary or to some other person on behalf of or for the benefit of the beneficiary or a member of his or her family, the following provisions shall apply:
The Director-General shall calculate the difference between the amount of the benefit paid during that period and the amount of the benefit that would otherwise have been payable if this Act had been in force during that period:
Where the result of the calculation is a deficiency in the payment made, the Director-General shall pay the amount of the deficiency to the beneficiary without further appropriation than this section; but may apply the amount of any such deficiency in reduction of the amount of any excess in the payment made of any other benefit affected by this section:
Where the result of the calculation is an excess in the payment made, the Director-General shall write off the amount of that excess under the authority of this section to the extent that it is not offset by the amount of any deficiency of payment of any other benefit affected by this section:
The Director-General shall also make such adjustments as are appropriate to the rate of the benefit payable after this Act comes into force.