Paragraph 21 Employer or third party option to make a lump sum payment for added pension
An employer or third party may exercise the option to make a lump sum payment for added pension by notice to the scheme manager in a form required by the scheme manager.
The option notice must specify the amount by which the member’s added (self only) pension or added (all beneficiaries) pension for the relevant scheme year is to be increased.
The amount of the lump sum payment is—
if the option notice specifies an increase in the member’s added (self only) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to a person of the member’s age and gender; and
if the option notice specifies an increase in the member’s added (all beneficiaries) pension, an amount determined by the scheme manager, after consultation with the scheme actuary, having regard to the cost as at the relevant day of providing retirement benefits to—
a person of the member’s age; and
the dependants of such a person.
The lump sum payment must be paid in a manner determined by the scheme manager after consultation with the scheme actuary.
The scheme manager must notify the employer or third party of the amount of the lump sum and the manner in which it is to be paid.