10. In rule B7 (commutation — general provision)—
(a)in paragraph (2), for “A”, substitute “Subject to paragraph (2A), a”;
(b)after paragraph (2) insert—
“(2A) A person who retires with an ill-health award may not commute any portion of a higher tier ill-health pension.”;
(c)in paragraph (7), for “6 months after his retirement”, substitute “the day before the pension comes into payment”;
(d)for paragraph (8), substitute—
“(8) Notice of commutation takes effect on the date of the person’s retirement.”;
(e)in paragraph (9), for sub-paragraph (b), substitute—
“(b)within three months of the date of his retirement, pay him the lump sum; but where payment of the pension had commenced before commutation, that sum shall be reduced by the difference between the aggregate payments made in respect of the pension and the aggregate payments that would have been made in respect of it if it had been reduced from the date of retirement.”;
(f)for paragraph (10), substitute—
“(10) Where—
(a)notice of commutation relating to an ill-health pension has taken effect;
(b)the pension is terminated under rule K1A(3); and
(c)the person later becomes entitled to another pension, other than an injury pension, for the purposes of which he is entitled to reckon the period of pensionable service that was reckonable for the purposes of the ill-health pension,
the other pension shall be reduced by the amount by which the ill-health pension would have been reduced if it had not been terminated.
(10A) Where paragraph (10)(c) applies and notice of commutation is given in respect of the other pension, the portion of it that may be commuted is reduced by the amount of the reduction under paragraph (10).”; and
(g)in paragraph (11), for “or I4”, substitute “or rule 2 or 3 of Part 7 of the Compensation Scheme”.