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Pension Schemes Act 2015

Section 57: Provision about calculation of lump sums: Great Britain

212.This section relates to a member or a member’s survivor taking a lump sum from accrued rights to flexible benefits other than money purchase benefits, where the scheme rules permit this option. It provides for regulations to make provision about the calculation of that lump sum.

213.Some examples of the situations the regulations may cover are specified. These are:

  • Where only part of the flexible benefits other than money purchase benefits is taken as a lump sum, regulations may determine how the remaining benefits are to be calculated after the lump sum has been taken; and

  • Where a member or the member’s survivor wishes to take up the option of a lump sum before reaching the scheme’s normal entitlement date, the regulations may place conditions on how the flexible benefits are calculated to determine the amount of the lump sum available and also set out conditions under which the lump sum may be reduced.

214.Finally, any regulations made under this power may include provisions to override any scheme rules which conflict with them.

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Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
  • The main options the government is considering, and which one is preferred;
  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.

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