# The Local Government Pension Scheme (Scotland) Regulations 1998, Regulation 48: Commutation: small pensions

Extent: E+W+S
Status: prospective

(1) If the annual rate of the retirement pension which a member who has attained state pensionable age is entitled to be paid is not more than £260 or such higher amount as may be prescribed from time to time by regulations made under section 21(1) of the Pension Schemes Act 1993, the appropriate administering authority may pay him a lump sum representing the capital value of the pension.
(2) The appropriate administering authority may also pay a lump sum representing the capital value of a long-term pension which is payable to any surviving spouse or to or in respect of an eligible child or children, if the annual rate does not exceed £260, or such higher amount as may be so prescribed.
(3) If a member is entitled to more than one retirement pension under the Scheme or more than one long-term pension is payable under the Scheme following a deceased member’s death, a lump sum is payable only if the aggregate amount payable to that member or following that death is less than £260 or such higher amount as may be so prescribed.
(4) Any increase payable under the Pensions (Increase) Act 1971 in respect of a pension must be included in its annual rate.
(5) The capital value of a pension must be calculated as shown in guidance issued by the Government Actuary.
(6) Where a payment is made in respect of a retirement pension, a payment representing the capital value of any long-term pension, which would be payable to the member’s spouse if that spouse survived the member, must also be made.
(7) The payment of a lump sum in respect of a pension discharges the appropriate administering authority from their liability for it and, where the payment is made to a member, for any short-term or long-term pensions which may become payable on his death.
(8) The appropriate administering authority must deduct from any payment under this regulation any tax to which they may become chargeable under section 599 of the Taxes Act.

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Source: https://www.legislation.gov.uk/uksi/1998/366/regulation/48 (the official version)
Page: https://openlegislation.uk/local-government-pension-scheme-scotland-regulations-1998/regulation-48
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.