Regulation 157 Commutation of small pensionsI1

This regulation applies if the pension entitlement of a member of the scheme or the pension entitlement of a member’s beneficiary does not exceed the small pensions commutation maximum.

Unless the member has reached deferred pension age, this regulation does not apply if the pension entitlement of the member or the member’s beneficiary is equal to or exceeds the member’s guaranteed minimum.

The scheme manager may pay the member, surviving partner or eligible child a lump sum of an amount as represents the cash value of the pension calculated in accordance with actuarial guidance if—

The payment of a lump sum under this regulation in place of a pension discharges all liabilities under this scheme in respect of that pension.

In this regulation—

• “the commutation provisions” means the provisions permitting the commutation of pensions set out in—

  1. (a)

     regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997^f1;

  2. (b)

     paragraph 7 of Schedule 29 (authorised lump sums-supplementary) to FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)^f2 and, in relation to a pension payable under Part 6 (death benefits), paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)^f3; and

  3. (c)

     regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations 2000^f4; and

• “the small pensions commutation maximum” means the amount that is permitted to be commuted, having regard to the commutation provisions that apply in the circumstances.