The National Health Service Superannuation Scheme (2008 Section) (Scotland) Regulations 2013

Commutation of small pensions

Commutation of small pensions

3.J.6.—(1) The Scottish Ministers may pay any person entitled to a pension under this Section of the scheme a lump sum representing the capital value of the pension and of any benefits that might have become payable under this Section of the scheme on the person’s death apart from the payment if the conditions specified in paragraph (2) are met.

(2) The conditions are that the payment complies with the following requirements (so far as they apply)—

(a) the contracting-out requirements;

(b) the preservation requirements;

(c) regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997(1);

(d) the lump sum rule (see, in particular, paragraph 7 (trivial commutation lump sums) of Schedule 29 to the 2004 Act);

(e) the lump sum death benefit rule (see, in particular, paragraph 20 (trivial commutation lump sum death benefit) of that Schedule; and

(f) regulation 12 (payments by larger pension schemes) of the Registered Pension Schemes (Authorised Payments) Regulations 2009(2).

(3) The lump sum must be calculated by the Scottish Ministers in accordance with advice from the scheme actuary.

(4) The payment of a lump sum under this regulation discharges all liabilities of the Scottish Ministers in respect of the pension in question and of any other such benefits as mentioned in paragraph (1).

(1)

S.I. 1997/785. Section 2 was amended by S.I. 2005/706, 2006/744 and 778 and 2009/2930.

(2)

S.I. 2009/1171. Section 12 was amended by paragraph 17 of Schedule 20 to the Finance Act 2007 (c.11) and S.I. 2011/1751.