Regulation 122 Commutation supplement: small pensionsI1
United Kingdom
Where—
a member (P) ceases to be in pensionable service under this scheme (other than by death in service); and
P has exercised the option under regulation 121(2),
P is entitled to be paid an additional amount (a “commutation supplement”) calculated under paragraph (2).
The sum payable to P is an amount sufficient, after deduction of any applicable income tax and national insurance payable by P arising as a result of such payment, to result in P receiving a net sum equal to—
the income tax payable by P on 25% of any lump sum payable under regulation 121(2) that relates only to uncrystallised rights under this scheme; plus
the national insurance contributions payable by P (if any) in relation to the lump sum received pursuant to regulation 121(2).
The commutation supplement is payable at the same time as payment of the lump sum mentioned in regulation 121(2).
In this regulation, “uncrystallised rights” has the meaning given in section 212 of the FA 2004f1.
Annotations
Commencement
- I1
Reg. 122 in force at 1.4.2022, see reg. 1(4)
Footnotes
- f1