# The Police Pensions Regulations (Northern Ireland) 2015, Regulation 122: Option to commute part of pension


(1) A member who becomes entitled to the payment for life of a full retirement pension or ill-health pension under this scheme may opt under this regulation to exchange part of the pension for a lump sum.
(2) An option under this regulation may only be exercised before the first payment of the pension is made.
(3) If a member exercises the option, for every £1 by which the amount of the member's annual rate of full retirement pension or ill-health pension is reduced, the member must be paid a lump sum of £12.
(4) The lump sum may not be more than 25% of the amount advised by the scheme actuary as representing the cash value of the pension.
(5) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 of the 2004 Act (see section 241 of that Act) .
(6) If paragraph (7) applies, the member may opt to exchange only so much of the pension that exceeds the guaranteed minimum, multiplied by such factor as is indicated for a person of the member's description in actuarial tables.
(7) This paragraph applies if the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the whole or part of a pension as a result of receipt by this scheme of a transfer payment from another pension scheme in respect of which the member had such a guaranteed minimum.

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Source: https://www.legislation.gov.uk/nisr/2015/113/regulation/122 (the official version)
Page: https://openlegislation.uk/police-pensions-regulations-northern-ireland-2015/regulation-122
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.