Regulation 10 Payments to members receiving annuities

(1)

A payment to a member which would be a trivial commutation lump sum^f1 but for the continuance after the payment of an annuity if—

(a)

the condition in paragraph (2) is satisfied; or

(b)

if the member is not a member of any other registered pension scheme, the conditions in paragraph (3) are satisfied.

(2)

The condition mentioned in paragraph (1)(a) is that the payment is made before the end of the commutation period, as determined in accordance with paragraph 7(2) of Schedule 29.

(3)

The conditions mentioned in paragraph (1)(b) are that—

(a)

the member had not previously received either a trivial commutation lump sum or a payment that was an authorised payment by virtue of this regulation; and

(b)

the value of the member’s pension rights immediately before the payment, calculated in accordance with paragraph 7(5) of Schedule 29, does not exceed 1% of the standard lifetime allowance^f2.

Annotations

Footnotes

f1: Paragraph 7 of Schedule 29 to the Finance Act 2004 specifies what sums are trivial commutation lump sums.
f2: Section 218 of the Finance Act 2004, in conjunction with S.I. 2007/494, sets the standard lifetime allowance.