Part 4Pension schemes etc
Chapter 3Payments by registered pension schemes
Authorised member payments
166Lump sum rule
1
This is the rule relating to the payment of lump sums by a registered pension scheme to a member of the pension scheme (“the lump sum rule”).
Lump sum rule
No lump sum may be paid other than—
- a
a pension commencement lump sum,
- b
a serious ill-health lump sum,
- c
a short service refund lump sum,
- d
a refund of excess contributions lump sum,
- e
a trivial commutation lump sum,
- f
a winding-up lump sum, or
- g
a lifetime allowance excess lump sum.
- a
2
For the purposes of this Part, a person becomes entitled to a lump sum under a registered pension scheme—
a
in the case of a pension commencement lump sum, immediately before the person becomes entitled to the pension in connection with which it is paid, and
b
in any other case, when the person acquires an actual (rather than a prospective) right to receive the lump sum.
3
Part 1 of Schedule 29 gives the meaning of expressions used in the lump sum rule.
4
Schedule 36 contains (in Part 3) transitional provisions about lump sums.