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The New Firefighters’ Pension Scheme Order (Northern Ireland) 2007

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Commutation: general

19.—(1) Subject to paragraphs (3) and (4), a person entitled or prospectively entitled to any pension under this Part may commute a portion of it (“the commuted portion”) for a lump sum.

(2) The lump sum shall be calculated by multiplying by 12 the amount of the person’s pension represented by the commuted portion at the date of retirement.

(3) A person taking ill–health retirement may not commute any portion of a higher tier ill–health pension.

(4) The commuted portion must not exceed—

(a)in a case to which paragraph (4) or (5) of article 15 applies, one quarter of the amount of the pension calculated in accordance with that paragraph;

(b)in any other case, one quarter of the amount to which he is entitled by way of pension.

(5) In order to commute a portion of a pension a person must—

(a)not earlier than four months before the date on which he intends to retire; but

(b)not later than the day before the pension comes into payment,

give the Board written notice of commutation specifying the commuted portion.

(6) Notice of commutation takes effect on the day of the person’s retirement (“the effective date”).

(7) The Board shall—

(a)from the effective date, reduce the person’s pension by the commuted portion; and

(b)as soon as reasonably practicable after the effective date, pay the lump sum.

(8) In relation to a deferred pension, a pension on member-initiated early retirement, a pension on Board-initiated early retirement, or either or both of the two pensions referred to in article 17, paragraphs (6) and (7) have effect as if references to the day of retirement and the effective date were references to the date on which the pension comes into payment.

(9) For the purposes of this article—

(a)the pension of a pension debit member shall be taken to be the amount of the pension after reduction in accordance with article 22; and

(b)no account shall be taken of any increase under article 2 or 3 of Part 7 of the Compensation Scheme in an award to a serviceman.

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