Paragraph 3 Conversion of part of pension

(1)

Subject to sub-paragraphs (2) and (3), an application under regulation 77 must—

(a)

be in writing in such form as the scheme manager may require;

(b)

be made—

(i)

when the member applies under paragraph 4 of Schedule 3 for payment of the pension; or

(ii)

before such later time as the scheme manager specifies in writing; and

(c)

specify—

(i)

the amount of the lump sum which the member wishes to receive (which must be a multiple of £12); or

(ii)

the conversion amount (which must be a whole number of pounds and a multiple of 12).

(2)

If the pension is an ill-health pension under regulation 90 an application under regulation 77 must be made—

(a)

at the time of claiming that ill-health pension; or

(b)

before such later time as the scheme manager specifies in writing.

(3)

If the pension is an ill-health pension at Tier 2 paid in substitution for an ill-health pension at Tier 1 by virtue of regulation 93(5), an application under regulation 77—

(a)

may only be made in relation to the difference between those pensions; and

(b)

must be made—

(i)

at the time the member becomes aware of the determination under regulation 93(5); or

(ii)

before such later time as the scheme manager specifies in writing.

(4)

A member must not exchange pension for a lump sum under regulation 77 to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act (see section 241 of that Act M1).

Annotations

Marginal citations

M1: Section 241 has been amended by section 158(1) of, and paragraphs 2 and 9 of Schedule 21 to, the Finance Act 2006 (c.25), section 69 of, and paragraphs 1 and 15 of Schedule 19 to, the Finance Act 2007 (c.11) and section 65 of, and paragraphs 62 and 74 of Schedule 16 to, the Finance Act 2011 (c.11).