8.—(1) A lump sum on death is payable under this paragraph in respect of the death of a pension credit member.
(2) Paragraph (1) does not apply if—
(a)the pension credit member dies after benefits attributable to the pension credit have become payable; and
(b)the death occurs more than five years after the member’s pension becomes payable.
(3) If the pension credit member dies before benefits derived from the credit have become payable, the amount of the lump sum is equal to 2.025 times the amount of the annual pension to which the pension credit member would have been entitled under regulation 75 if the member had reached whichever is the later of 65 or state pension age on the date of death.
(4) If the pension credit member dies after a pension under regulation 75 has become payable, the amount of the lump sum is equal to the lesser of amount A and amount B minus any lump sum paid to the pension credit member when the pension came into payment as a result of the member exercising the option under regulation 76.
(5) For the purposes of sub-paragraph (4)—
(a)amount A is an amount which is five times the annual amount of pension payable to the member at the date of death, less the amount of the pension payments already made to the member;
(b)amount B is the amount which is the higher of—
(i)twice the pension debit member’s re-valued pensionable earnings for the period of 12 months ending on the valuation day; and
(ii)twice the pension debit member’s re-valued pensionable earnings for the scheme year falling in the earnings reference period which has the largest re-valued pensionable earnings.
(6) In this paragraph—
“annual amount of pension” means the sum of—
the annual rate of pension payable to the member as at the beginning date for that pension, and
the increase (if any) in that annual rate under the Pensions (Increase) Act (Northern Ireland) 1971(1) payable as at the date of death;
“the beginning date”, in relation to a pension, has the meaning given by section 8(2A) of the Pensions (Increase) Act (Northern Ireland) 1971(2);
“valuation day” means the day referred to in Article 26(7) of the 1999 Order.
Section 8(2A) was inserted by Article 36(1) and (4) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))