Regulation 79 Option to commute part of pension

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.

The option may only be exercised—

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.

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

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.

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