Paragraph D.10 Option to exchange lump sum for pension
United Kingdom
A member may opt to exchange the whole or any part of the lump sum to which he would otherwise be entitled under this Part for F1an increase—
in the amount of pension payable to himself under these Rules, or
in the amount of pension payable to himself and to any other person under these Rules as a result of his membership of the Scheme.
Where a member so opts, the pension in respect of which he exercises the option is to be increased as from the date it is otherwise payable by so much as in the opinion of the Scheme Actuary is equivalent in value to the amount of the whole or, as the case may be, the relevant part of the lump sum in question.
A member who has exercised the option under paragraph (1) ceases to be entitled to payment of so much of the lump sum as is affected by the option.
Paragraph (3) applies whether or not the pension that is to be increased as a result of the option actually becomes payable.
The option under this rule may only be exercised by giving notice in writing to the Scheme administrator, in such form as the Secretary of State requires, during the period of 6 months ending with the day on which the person becomes entitled to the lump sum in question.
For the purposes of this rule, the option is treated as having been exercised on the date on which it is received by the Scheme administrator.
Annotations
Textual amendments
- F1
Words in Sch. 1 rule D.10(1) substituted (6.4.2009) by The Armed Forces Pension Scheme etc. (Amendment) Order 2009 (S.I. 2009/544), arts. 1(1), 12(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