Regulation 71 Option to commute part of pensionI1

United Kingdom

(1)

A member who becomes entitled to the immediate payment of a retirement pension may opt under this regulation to exchange part of the pension for a lump sum.

(2)

The option may only be exercised—

(a)

by written notice to the scheme manager which sets out the amount to be commuted; and

(b)

before the first payment of the pension is made.

(3)

If a member exercises the option, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4)

A member may not exchange F1for a lump sum more than the lesser of—

(a)

25% of the pension F2... under this regulation; or

(b)

the proportion of the pension to the extent that it would result in a scheme chargeable payment^f1 for the purposes of Part 4 of FA 2004.

(5)

This regulation does not apply to a pension derived from pension credit rights if the pension debit member from whose rights the pension is derived has received a lump sum under this regulation before the date on which the pension sharing order takes effect.

(6)

This regulation does not apply to a higher tier ill-health pension.

Annotations

Textual amendments

F1: Words in reg. 71(4) inserted (with effect from 1.4.2015) by The Firefighters’ Pension Scheme (England) (Amendment) Regulations 2017 (S.I. 2017/888), regs. 1(1)(2), 5(3)(a)
F2: Words in reg. 71(4)(a) omitted (with effect from 1.4.2015) by virtue of The Firefighters’ Pension Scheme (England) (Amendment) Regulations 2017 (S.I. 2017/888), regs. 1(1)(2), 5(3)(b)

Commencement

I1: Reg. 71 in force at 1.4.2015, see reg. 1(2)

Footnotes

f1: See section 241 of the Finance Act 2004.