Regulation 12 Insertion of regulation 71A

After regulation 71, insert—

“Option to commute part of an equivalent amount

71A.

(1)

A member who becomes entitled to the immediate payment of an equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the 1992 Scheme lower tier ill-health 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 equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the 1992 Scheme lower tier ill-health pension is made.

(3)

Where the person is entitled to the immediate payment of an equivalent amount to the NFPS lower tier ill-health pension and exercises the option to commute under this rule, the lump sum is calculated—

(a)

in the case of a person who is a connected member of the NFPS in accordance with paragraphs (2) and (4) of rule 9 (commutation : general) of Part 3 of the NFPS, and

(b)

in the case of a person who is a connected special member of the NFPS in accordance with paragraphs (2A), (4) and (4A) of rule 9 of Part 3 of that Scheme.”.