Regulation 74 Commutation supplementI1

United Kingdom

(1)

Where a pension credit member (P) has exercised the option under either regulation 72(1) (option for pension credit member to commute part of pension) or 73(2) (option for pension credit member to commute whole pension (serious ill-health)), P is entitled to be paid an additional amount (a “commutation supplement”) calculated under paragraph (2).

(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—

(a)

the income tax payable by P on any lump sum payable under either regulation 72(1) or 73(2) that relates only to uncrystallised rights under this scheme; plus

(b)

the national insurance contributions payable by P (if any) in relation to the lump sum received pursuant to either of those regulations.

(3)

The commutation supplement is payable at the same time as payment of the lump sum.

(4)

In this regulation, “uncrystallised rights” has the meaning given in section 212 of the FA 2004.

Annotations

Commencement

I1: Reg. 74 in force at 1.4.2022, see reg. 1(4)