The National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000

PART IV LUMP SUMS ON DEATH

19.—(1) The lump sum payable under regulation 11(7) must not be such as to cause the total of the lump sums payable on death to exceed the total realisable value of the investments made by the Secretary of State under regulation 7(1), 8(2) or 9(4) in respect of contributions made by the participator.

(2) The total lump sums payable on death are the total of—

(a) any lump sum death benefit arising pursuant to an election under regulation 3(1)(b) or (6) or 5(2)(a);

(b) any lump sum payable under regulation 11(7); and

(c) any lump sum death benefits which in total exceed £2,500 and which are payable under relevant schemes.

(3) The relevant schemes are—

(a) approved schemes;

(b) schemes approved under Chapter IV of Part XIV of the Taxes Act (personal pension schemes);

(c) free-standing additional voluntary contribution schemes;

(d) retirement annuity contracts approved under Chapter III of Part XIV of the Taxes Act;

(e) the Scheme constituted by the Pension Scheme Regulations; and

(f) relevant statutory schemes as defined in section 611A(1) of the Taxes Act.

(4) The permitted amount for the purposes of regulations 4(5) and 12(2) is £5,000 or, if greater, 4 times the participator’s remuneration.

(5) The participator’s remuneration is the greatest of T, U and V, where—

(a) T would have been the amount of the participator’s final remuneration if the date of his death had been the material date;

(b) U is the highest amount of the participator’s adjusted salary applicable under paragraph (3) for the purpose of calculating T, and

(c) V is the participator’s total taxable earnings during any period of 12 months ending on a date not more than 3 years immediately before his death, increased in proportion to any increase in the Index during the period beginning with that date and ending on the material date.

(1)

Section 611A was inserted by paragraph 15 of Schedule 6 to the Finance Act 1989.