SCHEDULE 1Scottish Parliamentary Pension Scheme

Part GRetirement lump sums

Right to commute pension into a lump sum

42

1

An individual may commute a portion of the individual's scheme pension into a lump sum (a “retirement lump sum”) by giving notice (a “commutation notice”) to the Fund trustees.

2

A commutation notice is valid only if it—

a

is given before the earlier of—

i

the day on which a scheme pension is first paid to the individual, and

ii

the individual's 75th birthday,

b

specifies the proportion of the individual's scheme pension that the individual wants to commute into a retirement lump sum, and

c

provides the Fund trustees with such other information as they may reasonably require to—

i

determine the amount payable, and

ii

satisfy themselves that, if paid, the retirement lump sum would be a “pension commencement lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).