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Regulation E21 Power to compound certain small pensions

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Where—

(a)

a pensionable employee has become entitled to a retirement pension or pensions and has attained the age of 65 years in the case of a man or 60 years in the case of a woman; and

(b)

the annual rate of that pension or the aggregate of the annual rates of those pensions, including the amount of any pensions increase payable thereon under the Pensions (Increase) Act 1971f1, the Pensions (Increase) Act 1974 or the Pensions Act, does not exceed £78,

the administering authority may discharge their liability in respect of—

(i)

that pension or those pensions; and

(ii)

if the pensionable employee is a male—

(A)

the widow’s long-term pension which, in the event of his dying leaving a widow, would be payable to her in respect of his reckonable service; and

(B)

the children’s long-term pension which, in the event of his dying leaving an eligible child or eligible children, would be payable to or for the benefit of his eligible child or eligible children in respect of his reckonable service,

by payment to the pensionable employee of a lump sum of such amount as represents the capital value of the pensions mentioned in sub-paragraphs (i) and (ii) above, calculated in accordance with tables prepared by the Government Actuary.

(2)

For the purposes of paragraph (1) a pensionable employee who ceases to be employed in the circumstances mentioned in regulation E2(1)(c) or who satisfies the requirements of regulation E2(1)(d) shall not be treated as having become entitled to a retirement pension until the date (if any) on which he becomes entitled to receive payments in respect of that pension.

(3)

Where the annual rate of the widow’s long-term pension or pensions payable to a widow does not exceed in total £104, including the amount of any pensions increase payable thereon under the Pensions (Increase) Act 1971, the Pensions (Increase) Act 1974 or the Pensions Act, the administering authority may discharge their liability in respect of that pension or those pensions by payment to the widow of a lump sum of such amount as represents the capital value of that pension or pensions, calculated in accordance with the tables mentioned in paragraph (1).

(4)

Where the annual amount of the children’s long-term pension payable to or for the benefit of an eligible child or eligible children does not exceed £104, the administering authority may discharge their liability in respect of that pension by payment of a lump sum of such amount as represents the capital value of that pension, calculated in accordance with the tables mentioned in paragraph (1).

Annotations

Footnotes

f1

1971 c. 56