Regulation H5 Commutation: small pensions
Where the annual rate—
of a retirement pension (or pensions) to which any person has become entitled as a member or former member, or
of a long-term pension to which any surviving spouse has become entitled, or
of a long-term pension payable to or in respect of an eligible child or children,
amounts (or amount in aggregate) to not more than the relevant amount, the appropriate administering authority may discharge their liability in respect of that pension (or those pensions) by payment to the member or former member or, in the case of a surviving spouse’s pension, the spouse or, in the case of a child’s pension, any person who appears to them to be appropriate, of a lump sum of such amount as represents the capital value of the relevant pension (or pensions), calculated in accordance with tables prepared by the Government Actuary.
For the purposes of this regulation, the relevant amount is—
in the case of a retirement pension £195;
in the case of a surviving spouse’s long-term pension £260;
in the case of a children’s long-term pension £260;
but, for the purposes of determining whether such pension or pensions exceed the relevant amount, the pension—
shall be taken in include any increase payable under the Pensions (Increase) Act 1971f1 in respect of it, and
shall be aggregated with any other such pension to which the member or, in the case of a surviving spouse’s pension, that spouse or, in the case of a children’s pension, any child or other person, has become entitled under the Scheme in respect of the member in question.
This regulation only applies to a retirement pension where the member who has become entitled to the pension has attained state pensionable age, and a member shall not be treated as having become entitled to a retirement pension under regulation D11 until the date (if any) on which he becomes entitled to receive payments in respect of that pension.
Where a payment is made to a person under paragraph (1) in respect of any retirement pension or pensions—
it shall include a payment of an amount representing the capital value (calculated as there mentioned) of any surviving spouse’s long-term pension which, if the person died leaving a surviving spouse, would be payable to that spouse; and
the liability in respect of any such surviving spouse’s long-term pension or pensions and in respect of any children’s long-term pension which, if the person died leaving an eligible child or eligible children, would be payable to or for the benefit of that child or those children is also discharged by the payment.
Annotations
Footnotes
- f1