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12.—(1) In rule A.4 (meaning of “final pensionable earnings”) in paragraph (4) for “for the purposes of that paragraph” substitute “for the purposes of those paragraphs”.
(2) In paragraph (3) of rule B.4 (joining the Scheme after service begins) in subparagraph (b) omit the words “after consultation with the Scheme medical adviser”.
(3) In rule D.5 (early payment of benefits: active members with permanent serious ill-health) in paragraph (2) for “For the purposes of these Rules” substitute “For the purposes of this rule and rule D.8”.
(4) In rule D.7 (early payment of benefits: deferred members with permanent serious ill-health)—
(a)in paragraph (1)(a) for “(see rule D.5(2) and (3))” substitute “(see rule D.5(3) and paragraph (4) below),”; and
(b)after paragraph (3) insert—
“(4) For the purposes of this Rule a member’s breakdown in health is “permanent” if, in the opinion of the Secretary of State, it will continue at least until the member reaches pension benefit age.”.
(5) In rule D.8 (member’s requests for review of ill-health awards) for paragraph (7) substitute—
“(7) If on any review under paragraph (4), the Secretary of State is of the opinion that—
(a)the member has suffered such a breakdown as is mentioned in paragraph (4)(a), but
(b)the condition by virtue of which he became entitled to the pension under rule D.6 has deteriorated so that he suffered such a breakdown later,
then the member’s entitlement to a pension under rule D.6 ceases and the member is entitled to a pension calculated in accordance with paragraph (7A) from the date on which the review was requested.
(7A) The pension to which a member is entitled under paragraph (7) shall consist of—
(a)a pension calculated under rule D.5, and
(b)an increase in that pension by an amount equivalent to the amount that a pension would be increased if the option to exchange a lump sum under rule D.10 were exercised where the amount of the lump sum exchanged is the difference between the lump sum paid to the member under rule D.6 and the lump sum which the member would have received had the member been entitled to it under rule D.5.”.
(6) In rule D.10 (option to exchange lump sum for pension) in paragraph (1) for “an increase in the amount of pension payable to himself or to any other person under these Rules” substitute—
“an increase—
(a)in the amount of pension payable to himself under these Rules, or
(b)in the amount of pension payable to himself and to any other person under these Rules as a result of his membership of the Scheme.”.
(7) In rule D.11 (option for members in serious ill-health to exchange whole pension for lump sum) omit paragraph (4).
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