Paragraph 75 Commutation of the pension credit benefitsI1

Northern Ireland

(1)

In the circumstances described in regulation 3(2)(b) of the Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000^f1 (commutation of the whole of pension credit benefit), the Board may commute for a lump sum the whole of the pension to which a pension credit member is entitled under article 74.

(2)

A person entitled or prospectively entitled to such a pension may commute for a lump sum a portion of the pension (“the commuted portion”).

(3)

But paragraph (2) does not apply if the pension debit member from whose rights the pension credit member’s pension credit is derived has received a lump sum under article 18 before the date on which the pension sharing order takes effect.

(4)

The lump sum under paragraph (2) is the actuarial equivalent of the commuted portion at the normal benefit age, calculated from tables prepared by the Government Actuary.

(5)

But the lump sum under paragraph (2) may not exceed the annual rate of the pension for the first year it is payable (disregarding any reduction under this article or any other article of the Scheme), multiplied by 2.25.

(6)

A person who wishes to commute a portion of a pension under paragraph (2) must not later than 6 months after—

(a)

the date on which the person attains normal benefit age; or

(b)

the date on which the pension sharing order takes effect,

whichever is the later, give the Board written notice of commutation, specifying the portion to be commuted.

(7)

Notice of commutation takes effect on the later of—

(a)

the date on which the pension under article 74 becomes payable; and

(b)

the date on which it is received by the Board.

(8)

When a person’s notice of commutation takes effect, the Board shall—

(a)

reduce the pension, as from the effective date, by the commuted portion; and

(b)

pay him the lump sum, reduced where the effective date is the date of receipt of the notice, by the difference between the aggregate payments made in respect of the pension and the aggregate payments that would have been made in respect of it if it had been reduced from—

(i)

the date on which the person attains normal benefit age; or

(ii)

the date on which the pension sharing order takes effect,

whichever is the later.

Annotations

Commencement

I1: ANNEX Scheme Pt. J art. 75 in operation at 1.4.2006, see art. 1(2)

Footnotes

f1: SR 2000 No. 146