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E2.—(1) If at the time of his death a person—
(a)was in local government employment and had a statutory pension entitlement, but was not a member by virtue of a notification under regulation B11(2) (leaving the Scheme), or
(b)was entitled to preserved benefits,
there shall be paid a lump sum death grant in accordance with regulation E8.
(2) Where paragraph (1) applies the amount of the death grant is three eightieths of the deceased’s pensionable remuneration, multiplied by the length in years of the period of membership taken into account in calculating his retirement pension, less, in a case where a surviving spouse’s long-term pension is payable under Part F, the appropriate amount to be deducted under regulation E5.
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