Regulation 72 Option for pension credit member to commute part of pensionI1

A pension credit member who becomes entitled to payment of a pension credit member’s pension under this scheme may, subject to paragraph (5), opt to exchange part of the pension for a lump sum.

The option under this regulation may only be exercised—

If a pension credit member exercises the option under this regulation, 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.

This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under this Part before the date on which the pension sharing order takes effect.

For the purposes of paragraph (1) the part of the pension exchanged must not exceed 35.7% of the overall value of the pension.