32.—(1) A member may apply to the appropriate administering authority to surrender part of the retirement pension which is or may become payable to him, so that, if he is survived by his spouse or a dependant of his (“the beneficiary”), the equivalent value of that part is paid instead to the beneficiary under this regulation.
(2) The application must be made in the period of one month ending with or one month beginning with the date on which the member retires.
(3) The authority must allow the application if they are satisfied the member is in good health.
(4) The surrender must not result in a pension being paid to the beneficiary of less than such amount as is specified in guidance issued for this paragraph by the Government Actuary.
(5) The aggregate amount surrendered must not–
(a)result in the reduction of the retirement pension to less than the pension which would become payable to the beneficiary; or
(b)exceed one third of the retirement pension.
(6) On the death of the member, the beneficiary becomes entitled to a pension at a rate equivalent to the value of the surrender in the beneficiary’s favour at the time when the surrender was made.
(7) The equivalent rate is such rate as is indicated in guidance issued by the Government Actuary.
(8) If the surrender is allowed, it has effect from the date the member retires from his employment.
(9) However, it does not take effect if the beneficiary or member dies before that date, and it ceases to have effect if the beneficiary dies before the member.