Regulation 23 Commutation: small pensions

For regulation 48 substitute–

“(1)

Where a member has become entitled to a retirement pension and the capital value of that pension and of any benefits that might otherwise have become payable on that member’s death would be a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to the Finance Act 2004, the appropriate administering authority may pay to that member a lump sum representing such capital value.

(2)

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.

(3)

Where a member has died and the capital value of any long-term pension which is payable to any surviving spouse or civil partner or to or in respect of an eligible child or children would be a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to the Finance Act 2004, the appropriate administering authority may pay to the dependant or dependants a lump sum representing such capital value.

(4)

The capital value of a pension must be calculated as shown in guidance issued by the Government Actuary.”.