Regulation 51 Commutation: small pensionsF1

A lump sum which is a trivial commutation lump sum within the meaning of section 166 of the Finance Act 2004 or a trivial commutation lump sum death benefit within the meaning of section 168 of that Act may be paid in accordance with the rules relating to the payment of such benefits under that Act.

No payment may be made under paragraph (1) if the pension includes a guaranteed minimum unless the member to whom it is paid has reached state pensionable age or any pension in respect of the guaranteed minimum is otherwise payable.

The payment of a lump sum for that pension discharges the Committee from its liability for the pension or any other benefit payable under the Scheme in respect of the member.

The capital value of a pension must be calculated in accordance with guidance issued by the Government Actuary.

The Committee must deduct from any payment under this regulation any tax for which it may become liable under Part 9 of the Income Tax (Earnings and Pensions) Act 2003.