Regulation 174 Commutation: small pensions

England and Wales

(1)

If paragraph (2) applies, the scheme manager may, on the application of a member (P), commute a retirement pension by paying a lump sum to P.

(2)

This paragraph applies if—

(a)

the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 M1;

(b)

the application under paragraph (1) is made when P applies under regulation 162 for payment of the retirement pension;

(c)

in the 3 years ending with the date of the application, a transfer payment has not been made in respect of P;

(d)

in the 5 years ending with the date of the application, a transfer payment has not been accepted in respect of rights accrued by P under another occupational pension scheme; and

(e)

a transfer payment otherwise than from another occupational pension scheme has not been accepted in relation to P.

(3)

If a lump sum is paid under paragraph (1), benefits are not payable under Part 6 on P's death.

(4)

The scheme manager may, on the application of a pension credit member (P), commute a pension credit retirement pension by paying a lump sum to P if—

(a)

(b)

the application is made when P applies under regulation 162 for payment of the pension.

(5)

The scheme manager may, on the application of a beneficiary to whom a pension is payable under Part 6, commute that pension by paying a lump sum to the beneficiary if—

(a)

the application is made when the beneficiary applies under regulation 162 for payment of the pension; and

F1(b)

the lump sum is a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to FA 2004.

(6)

A lump sum payable under this regulation is to be determined by the scheme manager after taking advice from the scheme actuary.

Annotations

Textual amendments

F1: Reg. 174(5)(b) substituted (1.4.2015) by The Teachers Pension Scheme (Amendment) Regulations 2014 (S.I. 2014/2652), regs. 1, 14

Marginal citations

M1: S.I. 2009/1171.