Statutory Instrument 1998 No. 192 (S. 8)
The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 - continued

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PART VI
GRATUITIES AS RESPECTS NON-PENSIONABLE SERVICE

Meaning of "service" in Part VI
45.  - (1) In this Part, unless the context otherwise requires, "service" is to be construed in accordance with this regulation.

(2) A person's service is the time spent by him in employment with any LGSS employer LGPS employer (SI1998/364) or former local authority which is not excluded by paragraph (3).

(3) Subject to paragraph (4), a person's service does not include any period-

(4) Where regulation 46(1) applies, service includes periods before 1st April 1986 of the kinds mentioned in paragraph (3)(e) and (f).

(5) In paragraph (3)(f) "public service scheme" means the Universities' Superannuation Scheme and any occupational pension scheme-

(6) In paragraph (5) "occupational pension scheme" means any scheme or arrangement comprised in one or more instruments or agreements and having effect (or being capable of having effect) in relation to one or more descriptions or categories of employments so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, on death or on retirement, to or in respect of earners with qualifying service in an employment of any such description or category.

Death in service gratuities
46.  - (1) Where a person who has been employed by a LGSS employer LGPS employer (SI1998/364) for not less than one year dies while in that employment, the LGSS employer LGPS employer (SI1998/364) may make a discretionary grant ("a death benefit gratuity") to one or more of the person's spouse or civil partner (SI2005/554) and dependants.

(2) A death benefit gratuity may consist of a lump sum or an annuity or both.

(3) The amount of a death benefit gratuity (including the capital value of any annuity) or, in a case where the gratuity is paid to more than one person, the aggregate amount of such gratuity must not exceed the prescribed maximum.

(4) In this regulation "the prescribed maximum" means 3.75 per cent of the aggregate of-

(5) In this regulation "annual rate of remuneration", in relation to an employee, means the annual rate of his remuneration (ascertained as if paragraphs 4 and 5 of Part III of Schedule 16 to the Superannuation Regulations regulations 20 to 22 of the LGPS Regulations (SI1998/364) or regulations 9 to 11 of the Benefit Regulations or regulation 43 of the Administration Regulations (SSI 2009/187) had applied) at whichever of the following times yields the highest figure-

(6) For the purposes of paragraph (4), the necessary adjustments to the annual rate of remuneration are-

(7) In paragraph (4) "the assumed membership", in relation to any person, means any service which would have been counted as part of his effective service if the person-

Retirement gratuities
47.  - (1) Where a person-

(2) A retirement gratuity may consist of a lump sum or an annuity or both.

(3) The amount of a retirement gratuity (including the capital value of any annuity) must not exceed-

and in this paragraph "annual rate of remuneration" has the meaning given in regulation 46(5) and "the prescribed maximum" the meaning given in regulation 46(4).

(4) Where-

the LGSS employer LGPS employer (SI1998/364) may grant a further gratuity by way of an annuity to one or more of the original annuitant's spouse or civil partner (SI2005/554) and dependants.

(5) The amount of an annuity granted under paragraph (4) or, in a case where an annuity is paid to more than one person, the aggregate amount of annuity must be the lesser of-

Redundancy gratuities
48.  - (1) Where a person-

(2) A redundancy gratuity may consist of a lump sum or an annuity or both.

(3) Where-

the LGSS employer LGPS employer (SI1998/364) may grant a further gratuity by way of an annuity to one or more of the person's spouse or civil partner (SI2005/554) and dependants.

(4) Where-

the LGSS employer LGPS employer (SI1998/364) may grant a further gratuity by way of an annuity to one or more of his spouse or civil partner (SI2005/554) and dependants.

(5) The amount of a redundancy gratuity in respect of any person (including the capital value of any annuity) or, in a case where the gratuity is paid to more than one person, the aggregate amount of such gratuity must not exceed the prescribed maximum (as defined in regulation 46(4)).

(6) The capital value of an annuity granted under paragraph (4) or, in a case where an annuity is paid to more than one person, the aggregate amount of such annuities must not exceed the shortfall mentioned in paragraph (4)(b).

(7) Where a person to whom a further gratuity is granted under paragraph (4) dies at a time when the capital value of the payments of the annuity he has received falls short of its capital value at the time of its grant, the LGSS employer LGPS employer (SI1998/364) may grant a further gratuity by way of an annuity to any other person to whom they might have granted a further annuity under paragraph (4) at the time of the original annuitant's death, but its capital value must not exceed that shortfall.

Schemes in connection with the exercise of powers
49. A LGSS employer LGPS employer (SI1998/364) may make a scheme with respect to the exercise of their powers under regulation 46, 47 or 48.

PART VI(A)
GRATUITIES AS RESPECTS EARLY LEAVERS ON GROUNDS OF
ILL HEALTH

(SSI 2009/187)

Interpretation
49A.
In this Part the expressions–

(i) “employing authority”;
(ii) “total membership”; and
(iii) “pensionable pay”;

have the same meaning as in regulation 2 of the Benefits Regulations.

Ill-health gratuity
49B.
—(1) Where, in the case of an active member who has at least two years total membership, an employing authority–

(a) determines to terminate the member’s employment on the grounds of the member’s ill health or infirmity of mind or body; and

(b) does not determine, under regulation 20(1)(a) of the Benefits Regulations, to terminate the member’s local government employment on the grounds that the member’s ill health or infirmity of mind or body renders the member permanently incapable of discharging efficiently the duties of the member’s current employment,

the employing authority may make the member a discretionary grant (“an ill health gratuity”).

(2) An ill health gratuity may consist only of a lump sum calculated in accordance with paragraph (3).

(3) Subject to paragraph (4), the amount is an amount equal to one week’s pay for every whole year of employment with that employing authority.

(4) The amount of ill health gratuity may not exceed a sum equal to 30 weeks' pay.

(5) In this regulation, the amount of one week’s pay is the amount equal to the annual rate of the member’s pensionable pay on the day before the member’s employment is terminated divided by 52.

(SSI 2009/187)