78.—(1) On the death of a member, the scheme manager may pay a lump sum to—
(a)the person or persons nominated by the member in accordance with regulation 84 (nominations for lump sum death benefits);
(b)if there is no person within sub-paragraph (a), to any person who is entitled to a pension under regulation 65 or 67 (surviving spouses’ and civil partners’ pensions and other adult dependants’ pensions) in respect of the member;
(c)if there is no person within sub-paragraphs (a) or (b), to any person who, but for the application of regulation 65 or 67 would be so entitled or to whom a pension may be awarded; or
(d)if there is no person within sub-paragraph (a), (b) or (c), to the member’s personal representatives.
(2) If the scheme manager decides to pay all or part of the lump sum in accordance with a nomination then—
(a)the payment is to be made to them in such proportions as the member has specified in the nomination; or
(b)if no proportions are so specified, in such proportions as the scheme manager considers appropriate.
(3) This regulation does not apply if—
(a)the member is—
(i)a pensioner member, who is not also a deferred member or an active member; or
(ii)a pension credit member who dies after any benefits attributable to a pension credit have become payable and who is not also an active member, a deferred member or a pensioner member; and
(b)the death takes place—
(i)more than 5 years after the member’ pension becomes payable; or
(ii)after the member’s pension has been commuted under regulation 116 (commutation of small pensions) or 60 (option for members in serious ill-health to exchange whole pension for lump sum).