Pensions Act 2004

[F1 Terminal illness lump sum: eligibility E+W+S

Textual Amendments

F1 Sch. 7 paras. 25B-25F and cross-headings inserted (1.4.2009 for specified purposes) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 8 para. 14; S.I. 2009/809, art. 2(1)(b)(iii)

25B (1) This paragraph applies to a person in relation to whom all of the following conditions are met— E+W+S

(a) the person is terminally ill;

(b) if the person lived to the relevant age, the person would become entitled on attaining that age to relevant compensation in relation to the scheme;

(c) the person has not yet become entitled to any compensation under the pension compensation provisions in relation to the scheme;

F2 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A person to whom this paragraph applies may make an application to the Board to commute the future entitlement mentioned in sub-paragraph (1)(b) for a lump sum (“a terminal illness lump sum”) payable on the granting of the application.

(3) For the purposes of this Chapter a person is “terminally ill” at any time if at that time the person suffers from a progressive disease and the person's death in consequence of that disease can reasonably be expected within 6 months.

(4) In this paragraph—

• F3 ...

• “relevant age”, in relation to a person, means—

  (a)

  in relation to compensation entitlement to which has been accelerated F4 ... under regulations under paragraph 25 F5 ..., the age at which the person becomes entitled to the compensation in accordance with the regulations;

  (b)

  in relation to compensation entitlement to which has not been so accelerated F6 ..., normal pension age (or, in a case to which paragraph 21 [F7 or 21A] applies, normal benefit age);

• “relevant compensation” means—

  (a)

  periodic compensation under paragraph 11 or 15, or

  (b)

  lump sum compensation under paragraph 14 or 19.

[F8 (5) Sub-paragraph (6) applies where—

(a) the commencement of a person's periodic compensation under paragraph 11 or 15 is postponed by virtue of paragraph 25A, or

(b) the payment of a person's lump sum compensation under paragraph 14 or 19 is postponed by virtue of that paragraph.

(6) This paragraph applies as if—

(a) the person first becomes entitled to compensation under the paragraph in question immediately after the period of postponement ends, and

(b) in sub-paragraph (1)(b), for “if the person lived to the relevant age, the person would become entitled on attaining that age” there were substituted “ if the period of postponement ended, the person would become entitled ”.]]

Textual Amendments

F2 Sch. 7 para. 25B(1)(d) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 9(a)

F3 Words in Sch. 7 para. 25B(4) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 9(b)

F4 Words in Sch. 7 para. 25B(4)(a) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 26(1)(a)(i); S.I. 2013/585, art. 2(b)(ii)

F5 Words in Sch. 7 para. 25B(4)(a) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 26(1)(a)(i); S.I. 2013/585, art. 2(b)(ii)

F6 Words in Sch. 7 para. 25B(4)(b) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 26(1)(a)(ii); S.I. 2013/585, art. 2(b)(ii)

F7 Words in Sch. 7 para. 25B(4) inserted (3.1.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 19(3)(c); S.I. 2011/3034, art. 3(i)(iv)

F8 Sch. 7 para. 25B(5)(6) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 26(1)(b); S.I. 2013/585, art. 2(b)(ii)