Paragraph 19 Commutation: generalI1

F1Subject to paragraphs (1B), (3) and (4), a person entitled or prospectively entitled to any pension under this Part may commute a portion of it (“the commuted portion”) for a lump sum.

This article applies to an equivalent amount of the NFPS lower tier ill-health pension included in the annual rate of a retirement pension for the person under regulation 68(2)(ba) of the 2015 Regulations may commute a portion of it for a lump sum.

Where a person is entitled to a continued pension under article 11B, that person may not commute a portion of that pension under this article.

F3Subject to paragraph (2A), the lump sum shall be calculated by multiplying by 12 the amount of the person’s pension represented by the commuted portion at the date of retirement.

In the case of a pension payable in respect of a special pensioner member the lump sum shall be calculated by multiplying the amount of the person’s pension represented by the commuted portion at retirement by the factor specified in the table in Schedule ZA by reference to his age.

A person taking ill–health retirement may not commute any portion of a higher tier ill–health pension.

F5Subject to paragraph (4A), the commuted portion must not exceed—

In the case of a special member, the commuted portion must not exceed—

whichever is lower.

In order to commute a portion of a pension a person must—

give the Board written notice of commutation specifying the commuted portion.

Notice of commutation takes effect on the day of the person’s retirement (“the effective date”).

The Board shall—

In relation to a deferred pension, a pension on member-initiated early retirement, a pension on Board-initiated early retirement, or either or both of the two pensions referred to in article 17, paragraphs (6) and (7) have effect as if references to the day of retirement and the effective date were references to the date on which the pension comes into payment.

In relation to a pension payable to a person who joins this Scheme as a special pensioner member, paragraphs (6) and (7) have effect as if references to the day of retirement and the effective date were references to the date on which the pension comes into payment.

Paragraph (8B) applies where—

If the person becomes entitled to another pension, other than an injury pension under the Compensation Scheme, for which he is entitled to reckon the period of pensionable service that was reckonable for the purposes of the ill-health pension or the early-paid pension (as the case may be), the other pension shall be reduced by the amount by which the ill-health pension or the early-paid pension would have been reduced if it had not been withdrawn.

Where paragraph (8B) applies, and notice of commutation is given in respect of the other pension, the portion of it that may be commuted is reduced by the amount of the reduction under that paragraph.

Where paragraph (8B) applies and the person entitled to that other pension is a special pensioner member, paragraph (8B) shall apply with the substitution of “special pensionable service” for “pensionable service”.

For the purposes of this article—