(1) A member of a district scheme who, except as otherwise provided by the scheme, defaults in the payment of contribution to the scheme for a period exceeding three months shall be suspended from the scheme,

(2) A member of a district scheme whose membership of the scheme is suspended because the member has defaulted in the payment of contributions to the scheme shall be reinstated if that member pays all the contributions in arrears and in addition pays a penalty of fifty per centum of the total contribution that is due.

(3) A suspended member of a district scheme who is reinstated under sub-regulation (1) shall not enjoy any benefits under the scheme until the expiration of a period of six months from the date of re-instatement.