Article 5
Subject to the provisions of this Article, where in relation to a discharged officer to whom this Article applies a sum has been transferred to the appropriate body under the provisions of the last preceding Article, the appropriate body shall pay to or in respect of that officer:—
as from his reaching normal retiring age, or as from the happening of any other contingency carrying entitlement to pension under the scheme, the payment or payments comprised in his accrued pension rights; or
at the option of the appropriate body in any case where the sum does not exceed £250 and where the officer concerned has not at any time before his discharge been in non-participating employment or, if he has so been, a payment in lieu of graduated contributions has been made in respect of his non-participating employment in accordance with section 58 of the National Insurance Act 1965, (such option to be exercised not later than 6 months after the date of his discharge), a lump sum equal in amount to the estimated capital value of his accrued pension rights at the date when the option is exercised, as determined by an actuary appointed by the appropriate body, reduced by the aggregate of—
any sum which the persons in whom the fund held for the purposes of that scheme is vested may become liable to pay by way of income tax in respect of the amount transferred by way of transfer value or estimated capital value, and
in a case where a payment in lieu of graduated contributions has been made under section 58 of the National Insurance Act 1965 on the discharge of the officer concerned and the period taken into account in fixing the amount of that payment includes any period of his pensionable service under that scheme, the smaller of the following two sums—
one-half of so much of that payment in lieu of graduated contributions as is referable to that period of pensionable service, and
the estimated capital value (determined as aforesaid) of the pension rights which have accrued to him under that scheme in respect of that period of pensionable service:
Provided that for the purposes of this paragraph, the expression “accrued pension rights” excludes any pension payable during the period for which any such arrangements as are referred to in Article 3(2) of this Order are in force.
Except as provided in paragraph (1)(b) of this Article, the payment or payments comprised in the accrued pension rights of a discharged officer to whom this Article applies shall not be capable of surrender, commutation or assignment otherwise than in accordance with the rules of his pension scheme.
The appropriate body may discharge its liability under paragraph (1)(a ) of this Article by making such arrangements with a life assurance company as will secure to or in respect of the discharged officer concerned, as from his reaching normal retiring age or as from the happening of any other contingency carrying entitlement to pension under his pension scheme, the payment or payments comprised in his accrued pension rights.
Except as aforesaid, the appropriate body shall be under no liability to or in respect of the discharged officer concerned by reason of any rights under or arising out of his membership of the scheme.