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55(1)An individual is entitled to be paid a lump sum (an “ill-health lump sum”) instead of a scheme pension if the following conditions are met—S
|Condition 1||The individual applies to the Fund trustees for an ill-health lump-sum.|
|Condition 2||The individual is neither an MSP nor the holder of a pensionable office.|
|Condition 3||The individual has reckonable service as an MSP or as an office-holder.|
|Condition 4||The Fund trustees are otherwise satisfied that, if paid, the ill-health lump sum will be a “serious ill-health lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).|
(2)An ill-health lump sum is to be equal to 5 times the annual scheme pension—
(a)in the case of an applicant aged 65 or over, which would otherwise be payable to the individual,
(b)in the case of an applicant aged under 65, which would be payable if the individual became entitled to a serious ill-health pension from the day on which the ill-health lump sum is payable.
(3)Payment of an ill-health lump sum extinguishes all the recipient's rights to receive scheme benefits.
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