Amount of lump sum: pension credit members
3.E.20.—(1) The lump sum payable on the death of a pension credit member who dies before any benefits derived from the member’s pension credit have become payable is an amount equal to the amount of the annual pension to which the member would have become entitled under regulation 3.D.2 (pension credit members) if the member had reached age 65 on the date of death, multiplied by 2.25.
(2) The lump sum payable on the death of a pension credit member who dies after a pension under that regulation has become payable is equal to the lower of—
(a)the annual amounts of the pension that would have been payable to the member during so much of the period of 5 years beginning with the date on which the pension became payable as falls after the date of death; and
(b)the amount produced by the formula—
where—
AUE is the amount as at the valuation day of the annual average of the uprated earnings of the debit member from whose rights the pension credit member’s pension credit is derived; and
CLS is the amount of the lump sum (if any) paid to the pension credit member as a result of the member exercising the option under regulation 3.D.10 (general option to exchange part of pension for lump sum) on becoming entitled to the pension under regulation 3.D.2 (pension credit members).
(3) For the purposes of paragraph (2), the annual amount of the pension is taken to be the sum of—
(a)the annual amount of the pension as at the beginning date for that pension; and
(b)the increase (if any) in that annual amount under the Pensions (Increase) Act 1971(1) payable as at the date of death.
(4) In this regulation—
“valuation day” means the day referred to in section 29(7) (the pension and annuity requirements) of the 1999 Act; and
“the beginning date”, in relation to a pension, has the meaning given in section 8(2A) of the Pensions (Increase) Act 1971.