Social Security Act 1973

Assignment, surrender and commutation of benefit

15 (1) Except as provided by this paragraph, a scheme must contain rules preventing assignment of short service benefit, and must not enable such benefit to be surrendered or commuted.

(2) Provisions enabling assignment are permissible (whether assignment before or after the benefit comes into payment) if it is assignment in favour of the member's widow or a dependant of his.

(3) Provisions enabling surrender (at the option of the member) are permissible where it is—

(a) to provide benefit for the member's widow or a dependant of his;

(b) to acquire for the member entitlement to transfer credits under another scheme ;

(c) to acquire for the member entitlement to further benefits under the same scheme, relating both to a period of pensionable service previously terminated and also to a subsequent period of service in relevant employment.

(4) Provision may be made for a member's benefit to be commuted, but only—

(a) in a case where he opts (at any time) to commute at or after normal pension age ; or

(b) in exceptional circumstances of serious ill-health ; or

(c) in such other circumstances as may be prescribed ;

and where a scheme provides benefit for a member's widow or dependant, it may provide for commutation by the beneficiary in such circumstances as may be prescribed.

(5) In respect of any of the benefits or rights alternative to short service benefit provided in accordance with paragraph 9(2) above, this paragraph shall apply with such modifications as may be prescribed.

(6) In the application of this paragraph to Scotland, for reference to assignment there shall be substituted references to assignation.