(2)When he retires from service or when his services are dispensed with owing to a reduction of establishment or some cause other than his own misconduct or inefficiency or when he becomes incapable of contributing to the Provident Fund by reasons of his having been reduced to inferior service as defined in the Civil Service Regulations otherwise than for misconduct or by reasons of his permanent transfer from qualifying to non-qualifying service or when he is permitted to resign under any circumstances other than those in clause (1), or