PART 12Supplementary
CHAPTER 2Payment of benefits: general
Commutation of small pensionsI1163
1
This regulation applies if—
a
the pension entitlement of a single capacity member or the pension entitlement of a single capacity member’s beneficiary does not exceed the small pensions commutation maximum; or
b
the total pension entitlement of a dual capacity member or the total pension entitlement of a dual capacity member’s beneficiary does not exceed the small pensions commutation maximum.
2
Unless the member has reached state pension age, this regulation does not apply if—
a
the pension entitlement of the member or the member’s beneficiary under paragraph (1)(a) is equal to or exceeds the member’s guaranteed minimum; or
b
the total pension entitlement of the member or the member’s beneficiary under paragraph (1)(b) is equal to or exceeds the member’s guaranteed minimum.
3
The scheme manager may pay the member or the member’s beneficiary a lump sum of an amount advised by the scheme actuary as representing the cash value of the pension if—
a
the member or the member’s beneficiary consents to receipt of a lump sum in place of the pension; and
b
the requirements of the commutation provisions that apply in the circumstances are met.
4
The payment of a lump sum under this regulation in place of a pension discharges all liabilities under this scheme in respect of that pension.
5
In this regulation—
“the commutation provisions” means the provisions permitting the commutation of pensions set out in—
- a
regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 199779;
- b
paragraph 7 of Schedule 29 (authorised lump sums – supplementary) to the 2004 Act (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)80 and, in relation to a pension payable under Part 8 (death benefits), F1... paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)81; and
- c
regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 200082;
- a
“single capacity member” means a member of this scheme who is not a dual capacity member; and
“the small pensions commutation maximum” means the amount that is permitted to be commuted having regard to the commutation provisions that apply in the circumstances.