Regulation 171 Commutation of whole pension (serious ill-health)

(1)

This regulation applies to a member (P) who, on the entitlement day for a pension, has a life expectancy of less than a year.

(2)

P may apply to the scheme manager to receive a lump sum instead of the pension.

(3)

The application must—

(a)

be in writing,

(b)

be made when P applies under regulation 162 for payment of the pension, and

(c)

be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to payment of the lump sum.

(4)

If P is eligible to apply under regulation 168 to receive a lump sum under that regulation—

(a)

the largest permissible lump sum is to be paid under that regulation; and

(b)

the conversion amount under that regulation is to be deducted when calculating the annual rate under regulation 172(2)(a).

(5)

In this regulation, “ pension” means—

(a)

an age retirement pension and any phased retirement pension payable with it;

(b)

an ill-health pension and a total incapacity pension or phased retirement pension payable with it; or

(c)

a pension credit retirement pension.