Paragraph 39 Commutation of part of pension credit benefitsI1
Northern Ireland
Subject to paragraph (3), a pension credit member may commute for a lump sum a portion of the pension to which he is entitled or prospectively entitled to under article 37 (“the commuted portion”).
The commuted portion must not exceed one quarter of the amount of the pension.
Paragraph (1) does not apply if the pension debit member from whose rights the pension credit member’s pension credit is derived has received a lump sum under article 19 (commutation: general) before the date on which the pension sharing order takes effect.
A person who wishes to commute a portion of a pension under paragraph (1) must give the Board written confirmation of the commutation, not later than the day before the pension comes into payment and not earlier than four months before—
the date on which the person attains normal benefit age; or
the date on which the pension sharing order takes effect,
whichever is the later.
Notice of commutation must specify the commuted portion.
A person’s notice of commutation takes effect on the date on which the pension under article 37 becomes payable.
F2Subject to paragraphs (7A) to (7C), when a person’s notice of commutation takes effect, the Board shall—
reduce the pension by the commuted portion;
calculate the lump sum by multiplying by 12 the amount of the person’s pension represented by the commuted portion at the date of retirement; and
pay him the lump sum as soon as reasonably practicable after—
the date on which he attains normal benefit age; or
the date on which the pension sharing order takes effect,
whichever is the later.
Where the pension debit member in relation to the pension to be commuted under paragraph (1) is a special member, the lump sum shall be calculated under paragraph (7B and 7C) and sub-paragraph (b) of paragraph (7) shall not apply.
Subject to paragraph (7C), the lump sum shall be calculated by multiplying the amount of the person’s pension represented by the commuted portion at the time when the pension becomes payable under article 37 by the factor specified in the table in Schedule ZA by reference to his age at that time.
A lump sum payable under paragraph (7B) shall be reduced to the extent necessary to prevent the payment of it resulting in a scheme chargeable payment.
Annotations
Textual amendments
- F1
Annex Scheme Pt. 6 art. 39(2) substituted (with effect in accordance with art. 1(3) of the amending Rule) by The New Firefighters’ Pension Scheme (Amendment) Order (Northern Ireland) 2008 (S.R. 2008/381), art. 1(3), Sch. para. 6(a)
- F2
Words in Annex Scheme art. 39(7) substituted (1.4.2015) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(2), Sch. para. 6(3)(a)
- F3
Annex Scheme art. 39(7A)-(7C) inserted (1.4.2015) by The New Firefighters' Pension Scheme (Amendment) Order (Northern Ireland) 2015 (S.R. 2015/9), art. 1(2), Sch. para. 6(3)(b)