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Gratuity upon death or incapacity of Member

Parliament (Privileges, Immunities and Powers) Act 1962

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—(1) Where at any time after 20 May 2011 —(a)a Member dies while serving as a Member; or(b)a Member, having opted under section 7 of the Parliamentary Pensions Act 1978 to receive a full pension without any gratuity, dies within one year of his pension taking effect,there may be paid to such of his dependants as the President may think fit or, if there are no dependants, to his legal personal representatives a gratuity in accordance with this section (referred to in this section as the death gratuity).(2) In the case of a pensionable Member who has 9 or more years of reckonable service as a Member, the death gratuity shall be an amount as follows:(a)if he never held any office, or if he had previously held office but was not holding any office at the time of his death and has less than 8 years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount equal to one of the following sums, whichever is the higher:(i)the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death;(ii)the Member’s commuted sum in respect of his reckonable service as a Member;(b)if he is holding office at the time of his death and has 8 or more years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount that is the balance after deducting any sums already received by him by way of pension or gratuity under the Parliamentary Pensions Act 1978 during his lifetime from one of the following sums, whichever is the higher:(i)the total amount by adding the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death and the annual equivalent of the monthly rate of salary received by the Member as a holder of that office immediately before his death;(ii)the aggregate of the Member’s commuted sum and office‑holder’s commuted sum in respect of his reckonable service as a Member and as a holder of any office, respectively;(c)if he is holding office at the time of his death but has less than 8 years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount equal to one of the following sums, whichever is the higher:(i)the total amount by adding the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death and the annual equivalent of the monthly rate of salary received by the Member as a holder of that office immediately before his death;(ii)the Member’s commuted sum in respect of his reckonable service as a Member; and(d)if he had previously held office but was not holding any office at the time of his death and has 8 or more years’ reckonable service as an office-holding Member (whether continuously or not) — an amount that is the balance after deducting any sums already received by him by way of pension or gratuity under the Parliamentary Pensions Act 1978 during his lifetime from one of the following sums, whichever is the higher:(i)the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death;(ii)the aggregate of the Member’s commuted sum and office‑holder’s commuted sum in respect of his reckonable service as a Member and as a holder of any office, respectively.(3) In the case of a non-pensionable Member, the death gratuity shall be an amount as follows:(a)if he has never held any office — an amount equal to the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death;(b)if he holds an office at the time of his death and has 8 or more years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount that is the balance after deducting any sums already received by him by way of pension or gratuity under the Parliamentary Pensions Act 1978 during his lifetime from one of the following sums, whichever is the higher:(i)the annual equivalent of the monthly rate of salary received by the Member as a holder of that office immediately before his death;(ii)the office-holder’s commuted sum in respect of his reckonable service as a holder of any office;(c)if he holds an office at the time of his death but has less than 8 years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount equal to the annual equivalent of the monthly rate of salary received by the Member as a holder of that office immediately before his death;(d)if he had previously held office but was not holding any office at the time of his death and has 8 or more years’ reckonable service as an office-holding Member (whether continuously or not) — an amount that is the balance after deducting any sums already received by him by way of pension or gratuity under the Parliamentary Pensions Act 1978 during his lifetime from one of the following sums, whichever is the higher:(i)the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death;(ii)the office-holder’s commuted sum in respect of his reckonable service as a holder of any office; and(e)if he had previously held office but was not holding any office at the time of his death and has less than 8 years’ reckonable service as an office‑holding Member (whether continuously or not) — an amount equal to the annual equivalent of the monthly rate of salary received by him as a Member immediately before his death.(4) There shall be charged on and paid out of the Pension Fund established by the Pension Fund Act 1995 all sums of money payable by way of death gratuity in accordance with this section.(5) Any death gratuity granted under this section shall not be assignable or transferable except for the purpose of satisfying a debt due to the Government or an order of any court for the payment of periodical sums of money towards the maintenance of the wife or former wife or minor child (whether legitimate or not) of the person to whom the death gratuity has been granted, and shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatever except a debt due to the Government.(6) In this section —“annual salary”, in relation to a Member, means —(a)the annual equivalent of the highest monthly rate of salary received by the Member during any period of his reckonable service as a Member, if reckoning a Member’s commuted sum for that Member; or(b)the annual equivalent of the highest monthly rate of salary received by the Member during any period of reckonable service as a holder of any office, if reckoning an office‑holder’s commuted sum for that Member;“Member’s commuted sum”, in relation to a Member, means a capital sum ascertained by multiplying the commutation factor of 175.14 by the lower of the following amounts:(a)two-thirds (2/3) of his annual salary as a Member;(b)the total amount that is determined by adding —(i)in respect of every completed year of reckonable service, one‑thirtieth (1/30) part of his annual salary; and(ii)in respect of any remaining uncompleted year of reckonable service, one‑three‑hundred and sixtieth (1/360) part of his annual salary for each completed month of reckonable service;“monthly rate of salary” excludes all non-pensionable allowances;“non-pensionable allowances” means —(a)the Variable Bonus which was paid for the years 1988 to 1991;(b)the Annual Variable Component which is payable for the year 1992 and subsequent years; and(c)the Non-Pensionable Variable Payment which is payable monthly for the year 1993 and subsequent years;“non-pensionable Member” means a person —(a)who, being an elected Member on 1 January 1995, has exercised in respect of his reckonable service as a Member on or after that date, an option to convert to the provident fund scheme applicable to non‑pensionable employees of the Government under the Central Provident Fund Act 1953;(b)who becomes, by election or appointment, a Member at any time after 1 January 1995 without previously having been, before or after that date, a Member or an office‑holding Member;(c)who, having been a Member before 1 January 1995 but not being a Member on that date, becomes, by election or appointment, a Member at any time after that date;(d)who, being an elected Member on 1 January 1995, becomes —(i)a non-constituency Member or nominated Member at any time after that date with or without a break in his service as a Member; or(ii)an elected Member at any time after that date with a break in his service as a Member after that date,and for the purposes of this paragraph, a Member’s service shall be deemed not broken but continuous if, following the dissolution of Parliament or his seat therein becoming vacant under the provisions of the Constitution, he is elected as a Member at the ensuing general election or the ensuing by‑election to fill that vacancy;“office” means the office of —(a)the Prime Minister;(b)a Deputy Prime Minister;(c)the Speaker;(d)a Senior Minister or a Minister;(e)a Senior Minister of State or a Minister of State;(f)a Mayor;(g)a Senior Parliamentary Secretary or a Parliamentary Secretary; or(h)a Political Secretary;“office-holder’s commuted sum”, in relation to a Member, means a capital sum ascertained by multiplying the commutation factor of 175.14 by the lower of the following amounts:(a)two-thirds (2/3) of the highest annual salary of any office held by a Member;(b)the total amount that is determined by adding —(i)in respect of every completed year of reckonable service in any office, or where he has served in more than one office in each office, one‑twenty‑seventh (1/27) part of his annual salary in that office; and(ii)in respect of any remaining uncompleted year of reckonable service in any office, or where he has served in more than one office in each office, one‑three‑hundred and twenty‑fourth (1/324) part of his annual salary for each completed month of reckonable service in that office;“pensionable Member” means a Member other than a non‑pensionable Member;“reckonable service” means —(a)in relation to service as a Member — service in Parliament as a Member of Parliament on and after 3 June 1959 but not after 20 May 2011; and(b)in relation to service in any office — service in that office on and after 3 June 1959 but not after 20 May 2011.(7) The President may, by order published in the Gazette, vary the commutation factor referred to in subsection (6).(8) For the avoidance of doubt, no person shall have an absolute right to any death gratuity under this section.

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