Regulation 116 Commutation of small pensionsI1

This regulation applies if—

The scheme manager may pay the person a lump sum of such an amount as the scheme manager after consultation with the scheme actuary advises represents the capital value of the pension if—

The payment of a lump sum under this regulation in respect of a pension discharges all liabilities under these Regulations in respect of that pension.

In this regulation—

• “the small pensions commutation maximum” means the amount that is permitted to be commuted, having regard to all the commutation requirements that apply in the circumstances in question; and

• “the commutation requirements” means requirements permitting the commutation of small pensions that are imposed by—

  1. (a)

     regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997^f1;

  2. (b)

     paragraph 7 of Schedule 29 to the FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act) and, in relation to a pension payable under Part 6 (death benefits), by paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of that Part); or

  3. (c)

     regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations 2000^f2.