Exchange of lump sum for additional periodical payments
37.—(1) This regulation applies to the lump-sum element of an ordinary pension or a deferred pension under this Part (which is not a deferred pension that becomes payable by reason of permanent disablement under regulation 32(4)), but in relation to a deferred pension to which this regulation applies, paragraphs (3), (4) and (5) shall have effect as if any reference in them to retirement or the date of retirement were a reference to the coming into payment of the pension or the date of that coming into payment.
(2) A regular police officer may, subject to and in accordance with this regulation, exchange for additional annual pension payments the whole or part of a lump-sum element to which this regulation applies to which the officer may become entitled.
(3) For the purpose of exchanging a portion of that officer’s pension in accordance with this regulation a person shall give notice in writing to the police authority before but not earlier than 4 months before that officer’s intended date of retirement of that officer’s wish to surrender and exchange for additional annual pension payments the whole or such part as that officer may specify of the lump-sum payment to which that officer would otherwise become entitled:
Provided that the notice of exchange shall not be effective if it was given more than 4 months before the date of that officer’s retirement.
(4) Where a person retires having given an effective notice of exchange the police authority shall withhold the whole or the specified part of the lump-sum payment in accordance with the notice and shall pay to that person additional annual pension payments of such amount as represents the actuarial equivalent of the surrendered lump sum or portion of the lump sum at the date of that officer’s retirement, calculated from tables prepared by the Scheme actuary.
(5) Sums paid or payable as additional pension payments by virtue of an effective notice of exchange shall be disregarded for the purposes of the calculation of a survivor’s pension under regulation 41 or 42.