# The Local Government Superannuation (Scotland) Amendment Regulations 1996, Regulation 10: Commutation of pension for reason of ill-health


After regulation E11 there shall be inserted the following regulation:—
“Commutation of pension for reason of ill-health
E11A (1) This paragraph applies where the appropriate administering authority, acting on medical advice, is satisfied that, at the time when a retirement pension first becomes payable to a former pensionable employee (“the recipient”), he is in serious ill-health, with a life expectancy of less than one year.
(2) In a case to which paragraph (1) applies, the appropriate administering authority may commute so much of the retirement pension as exceeds or would exceed the guaranteed minimum pension for a lump sum payable to the recipient of such amount as shall be calculated in accordance with paragraph (3).
(3) The lump sum payable under paragraph (2) is the amount obtained by multiplying the commuted amount of the recipient’s annual retirement pension, rounded up to the nearest one pound, by a factor of 5.
(4) Payment of a lump sum under paragraph (2) shall discharge the appropriate administering authority’s liability to pay a death gratuity under regulation E11.
(5) The appropriate administering authority shall deduct from any payment under this regulation any tax to which they may become chargeable under section 599 of the Income and Corporation Taxes Act 1988 (charge to tax: commutation of entire pension in special circumstances).”.

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Source: https://www.legislation.gov.uk/uksi/1996/414/regulation/10 (the official version)
Page: https://openlegislation.uk/local-government-superannuation-scotland-amendment-regulations-1996/regulation-10
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.