PART 8Payment of benefits
CHAPTER 3Payment of lump sums
Commutation: small pensions174.
(1)
If paragraph (2) applies, the Department may, on the application of a member (P), commute a retirement pension by paying a lump sum to P.
(2)
This paragraph applies if —
(a)
the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to the Finance Act 2004 Act or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 M1;
(b)
the application under paragraph (1) is made when P applies under regulation 162 for payment of the retirement pension;
(c)
in the 3 years ending with the date of the application, a transfer payment has not been made in respect of P;
(d)
in the 5 years ending with the date of the application, a transfer payment has not been accepted in respect of rights accrued under another occupational pension scheme; and
(e)
a transfer payment otherwise than from another occupational pension scheme has not been accepted in relation to P.
(3)
If a lump sum is paid under paragraph (1), benefits are not payable under Part 6 on P's death.
(4)
The Department may, on the application of a pension credit member (P), commute a pension credit retirement pension by paying a lump sum to P if—
(a)
the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to the Finance Act 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009; and
(b)
the application is made when P applies under regulation 162 for payment of the pension.
(5)
The Department may, on the application of a beneficiary to whom a pension is payable under Part 6, commute that pension by paying a lump sum to the beneficiary if—
(a)
the application is made when the beneficiary applies under regulation 162 for payment of the pension; and
(b)
the lump sum is a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to the Finance Act 2004.
(6)
A lump sum payable under this regulation is to be determined by the Department after taking advice from the scheme actuary.