SCHEDULES
SCHEDULE 6PENSION COMPENSATION PROVISIONS
Commutation of periodic compensation
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1
In prescribed circumstances, a person entitled to periodic compensation under paragraph 5, 8, 11 or 15 may opt to commute for a lump sum a portion of the periodic compensation with effect from the time it becomes payable.
2
Except in such circumstances as may be prescribed, the portion commuted under sub-paragraph (1) must not exceed 25%.
3
Any reduction required to be made under paragraph 26 (compensation cap) must be made before determining the amount of a person’s periodic compensation which may be commuted under this paragraph.
4
Where a person opts to commute any part of his periodic compensation under this paragraph, the lump sum payable under sub-paragraph (1) is the actuarial equivalent of the commuted portion of the periodic compensation calculated from tables designated for this purpose by the Board.
5
The Board must publish in such manner as it considers appropriate the tables designated by it for the purposes of sub-paragraph (4).
6
Regulations may prescribe the manner in which an option to commute periodic compensation under this paragraph may be exercised.
7
This paragraph does not apply where—
a
before the assessment date, the person concerned has received benefits under the scheme rules which were in the form of a lump sum (otherwise than as a result of the commutation of any part of a pension) and were attributable to his own service under the scheme, or
b
immediately before the assessment date, the person concerned has rights to a lump sum under the admissible rules (otherwise than by commutation of any part of a pension) and those rights are attributable to such service.
8
The Department may, by order, amend sub-paragraph (2) to substitute a different percentage for the percentage for the time being specified in that sub-paragraph.