Pensions Commutation Act 1871

4 †Power to Treasury to commute pensions. U.K.

It shall be lawful for [F1 the Minister for the Civil Service], in accordance with such regulations as they may from time to time make, on the application of any person to whom this Act applies, to commute his pension by the payment of a capital sum of money, calculated according to the estimated duration of the life of the pension–holder, subject to the following provisions:

(1) In calculating the amount payable in respect of the commutation of any pension, the following rules shall be observed:

(a) The age of the pension–holder shall be reckoned at the age he will attain on the birthday next succeeding his application for commutation;

(b) In the case of impaired lives, years shall be added to the age of the pension–holder for the purpose of calculating the amount of commutation payable to him; and in like manner a deduction from age shall be made as an equivalent for the right to prospective increase of the pension to be commuted;

(c) In calculating the amount payable in respect of any pension, interest shall be reckoned at a rate of not less than five pounds per centum per annum:

(2) [F2 [F3 Where any officer in the naval or land forces of Her Majesty whose pension has been commuted under this Act subsequently marries[F4 or forms a civil partnership], his widow[F5 or surviving civil partner] shall not be entitled to any pension, and a child of any such officer born after the date of the commutation of his pension shall not be entitled to compassionate allowance:]]

[F2 Where any officer in the naval or land forces of Her Majesty whose pension has been commuted under this Act subsequently marries or forms a civil partnership, the officer’s surviving spouse or surviving civil partner shall not be entitled to any pension, and a child of any such officer born after the date of the commutation of the pension shall not be entitled to compassionate allowance:]

[F3 Where any officer in the naval or land forces of Her Majesty whose pension has been commuted under this Act subsequently marries or forms a civil partnership, the officer’s surviving spouse or surviving civil partner shall not be entitled to any pension, and a child of any such officer born after the date of the commutation of the pension shall not be entitled to compassionate allowance:]

(3) Save as aforesaid, nothing in this Act contained shall be held to deprive the [F6 wife, civil partner] or children of any officer whose pension may be commuted of any reversionary right to pension or compassionate allowance to which she or they may be entitled:

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7

Textual Amendments

F1 Words substituted by virtue of S.I. 1968/1656, arts. 2(1)(c), 3(2)

F2 S. 4(2) substituted (S.) (16.12.2014) by The Marriage and Civil Partnership (Scotland) Act 2014 and Civil Partnership Act 2004 (Consequential Provisions and Modifications) Order 2014 (S.I. 2014/3229), art. 1(2), Sch. 5 para. 1

F3 S. 4(2) substituted (E.W.) (13.3.2014) by The Marriage (Same Sex Couples) Act 2013 (Consequential and Contrary Provisions and Scotland) Order 2014 (S.I. 2014/560), art. 1(2), Sch. 1 para. 2

F4 Words in s. 4(2) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(a), Sch. 26 para. 3(1)(a); S.I. 2005/3175, Sch. 1

F5 Words in s. 4(2) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(a), Sch. 26 para. 3(1)(b); S.I. 2005/3175, Sch. 1

F6 Words in s. 4(3) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(a), Sch. 26 para. 3(2); S.I. 2005/3175, Sch. 1

F7 S. 2 (4) repealed by Pensions Commutation Act 1984 (c. 7, SIF 101A:1), ss. 1(8), 2(3)

Modifications etc. (not altering text)

C1 S. 2 has effect as if any reference to the Minister for the Civil Service were a reference to the Treasury: S.I. 1981/1670, arts. 2(1) (c), 3(5)

C2 S. 2 amended (transfer of functions) by Pensions Commutation Act 1984 (c. 7, SIF 101A:1), ss. 1(2), 2(1)(3)

C3 S. 4(2) amendment by S.I. 2014/560, Sch. 1 para. 2 extended to N.I. (N.I.) (13.1.2020) by The Marriage (Same-sex Couples) and Civil Partnership (Opposite-sex Couples) (Northern Ireland) Regulations 2019 (S.I. 2019/1514), regs. 1(2), 149(b)(i)(aa) (with regs. 6-9)