Paragraph 69 Commutation

After regulation I5 insert—

“Commutation on election by pension credit member

I5A.

(1)

A pension credit member may, by an election made with the application for payment under regulation E33(2), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his pension.

(2)

The amount of such lump sum must be a multiple of £12 and cannot exceed—

(a)

in the case of a pension credit member with a normal pension age of 65, his permitted maximum, and

(b)

in the case of a pension credit member with a normal pension age of 60, his permitted maximum less the lump sum paid under regulation I3(3).

(3)

Where a lump sum is paid under this regulation the annual rate of the pension credit member’s pension is reduced by £1 for every £12 of lump sum.”.