17 Gratuity on death of a pensioner after retirement
1 Where a person dies in circumstances where he has become entitled to receive a pension under article 7, and no pension in respect of him is payable under any of articles 12 to 14 the Treasury may, subject to the approval of the Managers, pay to his personal representative a gratuity under this article.
2 The Treasury shall not pay a gratuity under this article in respect of a person who was a participant at any time on or after 1st April 1992 if the amount of such gratuity would be less than the amount of any lump sum payable by virtue of article 18 and paragraph 3(2) of Schedule 6.
3 For the purposes of determining the amount of the gratuity which may be paid in respect of a person under this article, there shall be calculated—
(a) the amount of the gratuity which the Treasury could have paid to the pensioner’s personal representative under article 16 had he died when he was a participant; and in determining such amount—
(i) paragraph (5) of article 16 shall apply in the case of a pensioner who was a participant at any time on or after 6th April 1988; and
(ii) paragraph (5) of article 16 shall apply in any other case, save that for sub-paragraph (5)(a) there shall be substituted “the amount of his pensionable salary at the time of his death”;
and
(b) the aggregate amount of the payment made to him by way of pension under article 7 together with any lump sum paid to him under article 8;
and the amount of the gratuity shall be the amount (if any) by which the amount calculated under paragraph (a) exceeds the amount calculated under paragraph (b) above.
4 In the case of a person who became a participant on or after 1st June 1989, the amount of the gratuity in paragraph (3) above shall be subject to an overall maximum of twice the permitted maximum.