Account-based Pensions and the New Medical Release Condition

These pensions are fully commutable.  Consequently, the change means that if a member commutes their account-based pension at a time when the member satisfies the terminal medical release condition the resulting lump sum will be tax free.

This change will only affect members who have not reached age 60.  Members who have already reached age 60 currently receive any commutation lump sum tax free.