Trivial commutation lump sum
6.—(1) The scheme manager may pay any person entitled to a pension under this scheme a lump sum representing the capital value of the pension and of any benefits that might have become payable under the scheme on the person’s death apart from the payment if the conditions specified in sub-paragraph (2) are met.
(2) The conditions are that the payment complies with the following requirements (so far as apply)—
(a)the contracting-out requirements,
(b)the preservation requirements (see section 65(2) of the 1993 Act).
(c)regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997(1),
(d)Part 2 of the Registered Pension Schemes (Authorised Payments) Regulations 2009(2),
(e)the lump sum rule (see in particular, paragraph 7 of Schedule 29 to the 2004 Act(3): trivial commutation lump sums for the purposes of Part 4 of that Act), and
(f)the lump sum death benefit rule (see, in particular, paragraph 20 of that Schedule(4): trivial commutation lump sum death benefit for the purposes of that Part).
(3) The lump sum must be calculated by the scheme manager in accordance with advice from the Scheme actuary.
(4) The payment of a lump sum under this regulation discharges all liabilities of the scheme manager in respect of the pension in question and of any other such benefits as mentioned in sub-paragraph (1).
S.R. 1997 No.153; Regulation 2 was amended by S.R. 2002 No.109; S.R. 2005 No.171; S.I. 2006/744 and S.R. 2009 No.365
Paragraph 7 has been amended by sections 65 and 67 of, and paragraph 23 and 29 of Schedule 16 and 1, 3 and 4(1) and (3) of Schedule 18 to, the Finance Act 2011 (c.11), section 42(1) of the Finance Act 2014 (c.26) and S.I. 2006/572
Paragraph 20 has been amended by sections 65 and 67 of, and paragraph 32 and 39 of Schedule 16 and 1, 3 and 6(1) and (3) of Schedule 18 to, the Finance Act 2011 (c.11)