Paragraph D.3 Pension credit members' pensions
United Kingdom
The general rule is that a pension credit member is entitled to a pension for life and a lump sum derived from the member’s pension credit rights.
But no lump sum is payable if the pension debit member is a pensioner member when the pension sharing order under which the member is entitled to the pension credit takes effect.
The pension and any lump sum become payable—
immediately on the pension credit member reaching pension benefit age; or
if it is later, when the pension sharing order under which the member is entitled to the pension credit takes effect.
If no lump sum is payable under this rule, the pension must be of such an amount that its value is equal to the member’s pension credit, as calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to the Welfare Reform and Pensions Act 1999.
If a lump sum is payable under this rule—
the lump sum so payable must be equal to three times the amount of the annual pension so payable, and
the pension so payable must be of such an amount that its value, when aggregated with the lump sum so payable, is equal to the member’s pension credit, as calculated in accordance with those regulations.
If a pension credit member exercises the option under rule D.4, the Secretary of State must be reasonably satisfied that the total value of the benefits payable by virtue of its exercise is at least equal to the amount described in regulation 11 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (value of alternatives to pension credit benefit).
Annotations
Textual amendments
- F1
Rule D.3(3) substituted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(5)
- F2
Rule D.3(6) inserted (27.6.2011) by The Armed Forces Pension Scheme 2005 (Amendment) Order 2011 (S.I. 2011/1364), arts. 1(1), 2(6)
Notes on Schedule 1
Modifications
- C1
Schs. 1-3 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10