Regulation 80 Option to commute part of pensionI1

England and Wales

(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 for a lump sum under this regulation more than the lesser of—

(a)

25% of the pension; and

(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.

F1(5A)

This regulation applies to a member who receives an increase in ill-health award as a result of regulation 75(3B)(c) save that paragraphs (3) and (4) do not apply and the lump sum payable is that calculated in accordance with rule B7 (commutation - general provision) of the 1992 Scheme.

(6)

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

Annotations

Textual amendments

F1: Reg. 80(5A) inserted (30.3.2022) by The Firefighters’ Pension Scheme (Wales) (Amendment) Regulations 2022 (S.I. 2022/343), regs. 1(2), 4(2)

Commencement

I1: Reg. 80 in force at 1.4.2015, see reg. 1(2)

Footnotes

f1: See section 241 of the Finance Act 2004. That section was amended by the Finance Act 2011 (c. 11), Schedule 16, paragraph 74 and the Finance Act 2006 (c. 25), Schedule 21, paragraph 9.