After regulation E19 there shall be inserted the following regulation—

“Commutation: trivial pensionsE19A.

(1)

Where a person has become entitled to a retirement pension of a trivial amount, the Department may pay to that person a lump sum representing the capital value of that pension and of any benefits that might otherwise have become payable on that person’s death.

(2)

A pension may not be treated as trivial if it includes a guaranteed minimum unless the person has reached state pensionable age or any pension in respect of the guaranteed minimum is otherwise payable.

(3)

A pension may be treated as trivial only if the aggregate of all benefits does not exceed £260 per annum.

(4)

Any lump sum payable under this regulation will be calculated by the Department, after taking advice from the Government Actuary.

(5)

A deduction is to be made from any payment under this regulation for the amount of tax chargeable in respect of it under section 599 of the Taxes Act.

(6)

A payment under this regulation shall discharge the Department’s liability in respect of that pension and of any benefits that might otherwise have become payable on that person’s death.”.