OpenLegislation

Paragraph 12

England, Wales and Scotland

(1)

This paragraph applies where all of the following conditions are met—

(a)

the transferee is terminally ill;

(b)

if the transferee lived to the relevant age, he or she would become entitled on attaining that age to compensation under paragraph 6 in respect of the pension compensation credit;

(c)

the transferee has not yet become entitled to any compensation under this Chapter in respect of the pension compensation credit;

F1(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)

The transferee may make an application to the Board to commute the future entitlement mentioned in sub-paragraph (1)(b) for a lump sum (“a terminal illness lump sum”) payable on the granting of the application.

(3)

For the purposes of this Chapter, a person is “terminally ill” at any time if at that time the person suffers from a progressive disease and the person's death in consequence of that disease can reasonably be expected within F212 months.

(4)

In this paragraph—

  • F3...

  • “relevant age”, in relation to a person, means—

    1. (a)

      in relation to compensation entitlement to which has been accelerated F4... under regulations under paragraph 10F5..., the age at which the person becomes entitled to the compensation in accordance with the regulations;

    2. (b)

      in relation to compensation entitlement to which has not been so accelerated or deferred, pension compensation age.

F6(5)

Sub-paragraph (6) applies where the commencement of a person's periodic compensation under paragraph 6 is postponed by virtue of paragraph 16A.

(6)

This paragraph applies as if—

(a)

the person first becomes entitled to compensation under paragraph 6 immediately after the period of postponement ends, and

(b)

in sub-paragraph (1)(b), for “if the transferee lived to the relevant age, he or she would become entitled on attaining that age” there were substituted “ if the period of postponement ended, the transferee would become entitled ”.

Annotations

Textual amendments

F1

Sch. 5 para. 12(1)(d) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 11(a)

F2

Words in Sch. 5 para. 12(3) substituted (29.6.2026) by Pension Schemes Act 2026 (c. 22), ss. 122(c), 133(11)(a)

F3

Words in Sch. 5 para. 12(4) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 11(b)

F4

Words in Sch. 5 para. 12(4) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 34(1)(a)(i); S.I. 2013/585, art. 2(b)(iii)

F5

Words in Sch. 5 para. 12(4) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 34(1)(a)(ii); S.I. 2013/585, art. 2(b)(iii)

F6

Sch. 5 para. 12(5)(6) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 34(1)(b); S.I. 2013/585, art. 2(b)(iii)

Notes on Schedule 5

Modifications

C1

Sch. 5 applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c 19 - see S.I. 2014/1683, art. 2