The National Health Service Pension Scheme Regulations 2015

PART 2 Conversion of part of pension into lump sum

Conversion of part of pension

3.—(1) Subject to sub-paragraphs (2) and (3), an application under regulation 77 must—

(a) be in writing in such form as the scheme manager may require;

(b) be made—

(i) when the member applies under paragraph 4 of Schedule 3 for payment of the pension; or

(ii) before such later time as the scheme manager specifies in writing; and

(c) specify—

(i) the amount of the lump sum which the member wishes to receive (which must be a multiple of £12); or

(ii) the conversion amount (which must be a whole number of pounds and a multiple of 12).

(2) If the pension is an ill-health pension under regulation 90 an application under regulation 77 must be made—

(a) at the time of claiming that ill-health pension; or

(b) before such later time as the scheme manager specifies in writing.

(3) If the pension is an ill-health pension at Tier 2 paid in substitution for an ill-health pension at Tier 1 by virtue of regulation 93(5), an application under regulation 77—

(a) may only be made in relation to the difference between those pensions; and

(b) must be made—

(i) at the time the member becomes aware of the determination under regulation 93(5); or

(ii) before such later time as the scheme manager specifies in writing.

(4) A member must not exchange pension for a lump sum under regulation 77 to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act (see section 241 of that Act(1)).

Member declaration

4.—(1) The scheme manager must not pay a member a lump sum under regulation 77 unless the member declares in writing that, on payment of the lump sum, paragraph 3A of Schedule 29 to the 2004 Act(2) would not apply.

(2) The declaration must be—

(a) signed by the member;

(b) in a form specified by the scheme manager; and

(c) provided by a date determined by the scheme manager.

Protection of guaranteed minimum pension

5.  If the member has a guaranteed minimum under section 14 of the 1993 Act(3) in relation to the whole or part of a pension, regulation 77 only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided to the scheme manager by the scheme actuary.

(1)

Section 241 has been amended by section 158(1) of, and paragraphs 2 and 9 of Schedule 21 to, the Finance Act 2006 (c.25), section 69 of, and paragraphs 1 and 15 of Schedule 19 to, the Finance Act 2007 (c.11) and section 65 of, and paragraphs 62 and 74 of Schedule 16 to, the Finance Act 2011 (c.11).

(2)

Paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006.

(3)

Section 14 has been amended by sections 151 and 177 of, and paragraphs 27(a) and (b) of Schedule 5 and Part 3 of Schedule 7 to, the Pensions Act 1995 (c.26), section 1(1) of, and paragraph 38(a) to (c) of Schedule 1 to, the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2), section 456 of, and paragraphs 1 and 22(1) and (3) of Schedule 11 to, the Proceeds of Crime Act 2002 (c.29), and is prospectively amended by section 24(1) of, and paragraphs 1 and 15(1) to (3) of Schedule 13 to, the Pensions Act 2014 (c.19).