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The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

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Trivial commutation of benefits derived from section 5(2B) rights

20.  For the purposes of section 8C(1)(c) of the Act(1) (regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), any benefits which have accrued in respect of an earner’s section 5(2B) rights under a scheme may not be paid as a lump sum instead of a pension unless—

(a)such benefits are payable under the rules of the scheme;

(b)the aggregate of all benefits including benefits in respect of section 5(2B) rights payable to the earner (or his widow or widower) does not exceed £260 per annum, and

(c)the Department is satisfied that the scheme provides a reasonable basis for ascertaining the sum to be paid on commutation.


Sections 8C and 8D were inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995

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