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The Redundant Association Officers Compensation Regulations 1967

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Compounding of awards

33.—(1) In a case where an annual sum which has been or might be paid under these regulations does not exceed £26, the Secretary of State may commute the annual sum by paying a lump sum equivalent to the capital value of the annual sum.

(2) In any other case the Secretary of State may, if a person to whom long term or retirement compensation is payable requests him to do so and the Secretary of State, after having regard to the state of health of that person and the other circumstances of the case, thinks fit, permit the commutation of up to one quarter of the annual sum payable (not being a sum payable to a spouse or dependant under Part VI of these regulations) by the payment of an equivalent amount as a lump sum or, where any compensation is payable as a lump sum, by increasing that compensation to such equivalent amount; and in calculating for this purpose annual sums payable, account shall be taken of the annual value of lump sum payments of compensation.

(3) The making of a composition under paragraph (2) of this regulation in relation to long term or retirement compensation shall not prevent the subsequent making of a composition under paragraph (1) of this regulation in relation to that compensation, but, subject as aforesaid, not more than one composition may be made in relation to any one form of compensation.

(4) In lieu of paying a person retirement compensation or compensation under Part VI of these regulations the Secretary of State may arrange with the authority administering the relevant pension scheme that sums payable under the scheme to that person shall be increased by an amount equivalent to the amount of the compensation which but for this paragraph would have been payable and may make any payment which may be required to secure the payment of the increase.

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