Regulation 9 Amendment of regulation E1I1

Regulation E1 (normal retirement pension) is amended as follows.

In paragraph (3)^f1 for “70”, substitute “75”.

After paragraph (3) insert—

“(4)

Subject to paragraph (5), where a member who leaves pensionable employment on or after 1st April 2008 becomes entitled to a pension under this regulation, the Secretary of State may discharge the Secretary of State’s liability for that pension by the payment of a lump sum of an amount consistent—

(a)

with the contracting-out and preservation requirements of the 1993 Act;

(b)

with the lump sum rule.

(5)

A lump sum payment under paragraph (4) may be made only if the Secretary of State is satisfied that it is appropriate in all the circumstances having regard to the life expectancy of the member.

(6)

For the purposes of paragraph (5), the Secretary of State may require whatever medical evidence that the Secretary of State considers necessary.

(7)

The amount of the lump sum payable under paragraph (4)—

(a)

will be equal to 5 times the yearly rate of the member’s pension (calculated in accordance with this regulation); and

(b)

shall be payable in addition to the lump sum on retirement payable under regulation E6 (which shall not be subject to any reduction under regulation E6(3)) and the lump sum in place of part of a pension payable under regulation E7.

(8)

For the purposes of calculating the amount of the lump sum payable under paragraph (7), the member will be treated as if the member had made an election under regulation E7 to receive the maximum amount of a further lump sum payable under that regulation.”.