Regulation 20 Commutation: exceptional circumstances of ill-health

After regulation E18 there shall be inserted the following regulation:–

“Commutation: exceptional circumstances of ill-health

E18A

(1)

Where at the time when a person first becomes entitled to a retirement pension by virtue of regulation E5(1)(e) there are exceptional circumstances of serious ill-health affecting that person the Secretary of State may discharge his liability in respect of so much of that pension as exceeds the person’s guaranteed minimum by payment of a lump sum calculated in accordance with paragraph (2).

(2)

The lump sum is an amount equal to five times the amount by which the annual rate of the retirement pension which would otherwise be payable to the person exceeds the amount of his guaranteed minimum.”.