Commutation of periodic compensationE+W+S
24(1)In prescribed circumstances, a person entitled to periodic compensation under paragraph 5, 8, 11 or 15 may opt to commute for a lump sum a portion of the periodic compensation with effect from the time it [F1commences] .E+W+S
(2)Except in such circumstances as may be prescribed, the portion commuted under sub-paragraph (1) must not exceed 25% [F2of the periodic compensation at that time].
F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Where a person opts to commute any part of his periodic compensation under this paragraph, the lump sum payable under sub-paragraph (1) is the actuarial equivalent of the commuted portion of the periodic compensation calculated from tables designated for this purpose by the Board.
(5)The Board must publish in such manner as it considers appropriate the tables designated by it for the purposes of sub-paragraph (4).
(6)Regulations may prescribe the manner in which an option to commute periodic compensation under this paragraph may be exercised.
(7)This paragraph does not apply where—
(a)before the assessment date, the person concerned has received benefits under the scheme rules which were in the form of a lump sum (otherwise than as a result of the commutation of any part of a pension) and were attributable to his own service under the scheme, or
(b)immediately before the assessment date, the person concerned has rights to a lump sum under the admissible rules (otherwise than by commutation of any part of a pension) and those rights are attributable to such service.
(8)The Secretary of State may, by order, amend sub-paragraph (2) to substitute a different percentage for the percentage for the time being specified in that sub-paragraph.
Textual Amendments
F1Word in Sch. 7 para. 24(1) substituted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 25; S.I. 2013/585, art. 2(b)(ii)
F2Words in Sch. 7 para. 24(2) inserted (6.4.2017) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 20 para. 6(2) (with Sch. 20 paras. 9, 11); S.I. 2017/297, art. 2(b) (with transitional provisions in S.I. 2017/301)
F3Sch. 7 para. 24(3) omitted (coming into force in accordance with reg. 1(b) of the amending S.I.) by virtue of The Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023 (S.I. 2023/1309), reg. 3(10)
Commencement Information
I1Sch. 7 para. 24(1)(2)(6) in force for the purpose only of conferring power to make regulations, orders or rules, as the case may be, 10.2.2005; and for all other purposes at 6.4.2005 in so far as not already in force by S.I. 2005/275, art. 2(3), Sch. Pt. 3
I2Sch. 7 para. 24(3)-(5)(7)(8) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7