Paragraph 42 Limitation on discretion to commute pension or allowance for gratuityI1

This article applies where a person dies while in receipt of an ordinary, short service, ill-health or deferred pension (“the principal pension”).

The Board may not under article 40 or 41 commute the whole or a part of a pension or allowance for a gratuity the actuarial value of which exceeds—

The permitted amount is A - B - C, where—

• A is a quarter of the actuarial value of the principal pension, disregarding any reduction under article 18 (commutation – general provisions),

• B is the actuarial value of any other lump sum paid under article 40 or 41, and

• C is the actuarial value of any lump sum paid under article 18.

The actuarial value of any pension or lump sum is its actuarial value at the time of the deceased’s retirement as calculated by the Government Actuary.

For the purposes of this article no account shall be taken of an increase under article 69(3) or rule 2 or 3 of Part 7 of the Compensation Scheme in an award to a serviceman.