Regulation 193 Commutation of small pensionsI1

This regulation applies if—

Unless the member has reached the member’s state pension age, this regulation does not apply if—

The scheme manager may pay the member or the member’s beneficiary a lump sum of an amount advised by the scheme actuary as representing the cash value of the pension if—

The payment of a lump sum under this regulation in place of a pension discharges all liabilities under this scheme in respect of that pension.

In this regulation—

• “beneficiary”, in relation to a deceased member, means the surviving adult or eligible child of the member;

• “the commutation provisions” means the provisions permitting the commutation of pensions set out in—

  1. (a)

     F1paragraph 7 of schedule 29 of the Finance Act 2004,

  2. (b)

     regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997^f1;

  3. (c)

     paragraph 7 of Schedule 29 (authorised lump sums – supplementary) to FA 2004 (which defines trivial commutation lump sums for the purposes of Part 4 of that Act)^f2 and, in relation to a pension payable under Part 9 (death benefits), paragraph 20 of that Schedule (which defines trivial commutation lump sum death benefit for the purposes of Part 4 of that Act)^f3; and

  4. (d)

     regulation 3 of the Pension Sharing (Pension Credit Benefit) Regulations 2000^f4;

• “single capacity member” means a member of this scheme who is not a dual capacity member; and

• “the small pensions commutation maximum” means the amount that is permitted to be commuted having regard to the commutation provisions that apply in the circumstances.