13.—(1) For rule E.15(1), substitute—
“(1) If a member dies before reaching the age of 75, the Secretary of State may pay a lump sum to any of the following—
(a)the person or persons nominated by the member in accordance with rule E.21;
(b)if there is no person within sub-paragraph (a), to any person who is entitled to a pension under rule E.1 in respect of the member, or to whom a pension may be awarded under rule E.2 in respect of the member;
(c)if there is no person within sub-paragraph (a) or (b), to any person who, but for the application of rule E.1(2) or rule E.2(2), would be so entitled or to whom a pension may be awarded; or
(d)if there is no person within sub-paragraphs (a), (b) or (c), to the member’s personal representatives.”.
(2) For rule E.15(4), substitute—
“(4) A lump sum paid under this rule may not be paid more than two years after the day on which the Scheme administrator first knew, or could reasonably be expected to have known, of the member’s death.”.
(3) After rule E.15(4), insert—
“(5) The annual amount of pension paid to a person under this Part shall be increased by such amount as the Defence Council, after consulting with the Scheme actuary, may determine, if—
(a)the Defence Council have determined that a lump sum should be paid to the person under this Part, but the lump sum is not paid within two years of the date of the death; or
(b)the Defence Council have determined that, but for paragraph (1), a lump sum would have been paid to the person.”.