26 Amendment of regulation 11 of the AVC Regulations
1 Regulation 11 of the AVC Regulations (Retirement and dependent’s pensions) is amended in accordance with this Regulation.
2 For paragraph (1) substitute—

“1 Subject to paragraph (7) and regulation 15(9) and (10) the proceeds of any investment made under regulation 7(1), 8(2) or 9(4) may be —
(a) taken partially as a pension commencement lump sum with the remainder being used to purchase from an insurer an annuity which complies with the requirements of paragraph (2); or
(b) used solely for the purchase from an insurer of an annuity which complies with the requirements of that paragraph,
and not otherwise.”

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3 After paragraph (3)(a), insert—

“(aa) whether a pension commencement lump sum and retirement pension is to be provided;”

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4 For paragraph (5), substitute—

“5 Upon receipt of a notice of election under paragraph (3), the Department shall, as soon as reasonably practicable, realise the investments made under regulations 7(1), 8(2) or 9(4) and —
(a) where sub-paragraph (aa) of that paragraph does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of an election;
(b) where that sub-paragraph does apply—
(i) pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and
(ii) apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice.”

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