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The Local Government Pension Scheme (Scotland) Regulations 1998
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Commutation: exceptional ill-health
49.—(1) If, when a retirement pension first becomes payable to a member, the appropriate administering authority are satisfied that his life expectancy is less than one year, they may pay him a lump sum equal to five times the amount by which the annual rate of the retirement pension exceeds his guaranteed minimum.
(2) Such a payment discharges the authority’s liability for that pension (except the guaranteed minimum) and for any lump sum death grant calculated by reference to that pension under the Scheme.
(3) The authority must deduct from any such payment any tax to which they may become chargeable under section 599 of the Taxes Act.
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