117.—(1) This regulation applies where—
(a)a person (P) makes or is treated as making an election under regulation 116 (election to receive lump sum in place of pension) (“the original election”) to receive a lump sum in place of part of a phased retirement pension,
(b)the pension referred to in sub-paragraph (a) ceases to be payable under regulation 59 (cessation of phased retirement pension), and
(c)a phased retirement or a retirement pension becomes payable to P.
(2) This regulation also applies where—
(a)a person (P) makes or is treated as making an election under regulation 117 (“the original election”) to receive a lump sum in place of part of—
(i)an ill-health pension, or
(ii)a total incapacity pension,
(b)the pension referred to in sub-paragraph (a) ceased to be payable under regulation 68 (cessation and reinstatement of ill-health pension (application received before 6th January 2007)) or regulation 69 (cessation and reinstatement of ill-health pension (application received on or after 6th January 2007), and
(c)a phased retirement or a retirement pension becomes payable to P.
(3) P is to be treated as making an election under regulation 116 (“the new election”) to receive a lump sum of the appropriate amount in place of part of the pension referred to in paragraph (1)(c) or (2)(c) and any total incapacity pension paid with that pension.
(4) The annual rate of the new pension is to be reduced in accordance with regulation 116.
(5) Despite paragraph (3), the lump sum to be paid to P pursuant to the new election is the appropriate amount less the amount of the lump sum (or aggregate of the lump sums) paid to P pursuant to the original election.
(6) The appropriate amount is (NP-(OP2/OP1 x NP)) x 12, rounded to the nearest £12, where—
NP is the annual rate of the new pension taking no account of the new election,
OP1 is the annual rate of the original pension taking no account of the original election, and
OP2 is the annual rate of the original pension after taking account of the original election.
(7) In paragraphs (4) and (6) “the new pension” means the pension referred to in paragraph (1)(c) or (2)(c), or the aggregate of either of those pensions and any total incapacity benefit paid with that pension.
(8) In paragraph (6) “the original pension” means the pension referred to in paragraph (1)(a) or the pension, or aggregate of the pensions, referred to in paragraph (2)(a).