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Ill health benefits and death benefits

13.—(1) For paragraph 15 of Schedule 2 (ill health benefits) substitute—

15.(1) A minimum age for any member of a scheme for payment of or entitlement to a particular age related benefit on the grounds of ill health where the age related benefit is enhanced in accordance with sub-paragraph (2) and paid either with or without consent (whether of an employer, the trustees or managers of the scheme or otherwise).

(2) The enhancement of any age related benefit payable to or in respect of a member on the grounds of ill health where the enhancement is calculated in one or more of the following ways—

(a)by reference to some or all of the years of prospective pensionable service a member would have completed if he had remained in pensionable service until normal pension age;

(b)by reference to a fixed number of years of prospective pensionable service;

(c)by making an actuarial reduction which is smaller than if early retirement had been on the grounds to which paragraph 12 applied; or

(d)by not making any actuarial reduction for early retirement.

(3) Sub-paragraph (1) shall also apply to different minimum ages for different groups or categories of members.

15A.(1) The calculation of any death benefit payable in respect of a member—

(a)by reference to some or all of the years of prospective pensionable service a member would have completed if he had remained in service until normal pension age; or

(b)by reference to a fixed number of years of prospective pensionable service.

(2) Payment after a member’s death of a death benefit calculated by reference to the period remaining in a pension guarantee period.

(3) For the purposes of sub-paragraph (2), a pension guarantee period means a fixed period specified in or permitted by the scheme rules beginning on—

(a)the date on which the payment of pension to or in respect of the member began, or

(b)if specified in the scheme rules, the date of the member’s death on or after normal pension age where payment of pension to or in respect of him had not begun.

(4) Any difference between the death benefits payable in respect of deferred members who die before normal pension age and the death benefits payable in respect of deferred members who die on or after normal pension age..