Regulation 14 Conversion of excess amount of lump sum into pension

In paragraph (1) of regulation E5 substitute for the words from “together with” to the end of the paragraph—

“together with—

(a)

the rate specified in regulation E5A where that regulation applies, and

(b)

any amount determined in accordance with paragraph (4B) of regulation E6 where that paragraph applies,

(but nothing in this regulation, regulation E5A or regulation E6(4B) shall prevent different parts of a person’s retirement pension being paid at different times if the person becomes entitled to the parts at different times).”.

In regulation E6 (which makes provision about a person’s retirement lump sum) insert after paragraph (4)—

“(4A)

Paragraph (4B) applies in any case where, but for paragraph (4), a person would be entitled to a lump sum which exceeds the person’s permitted maximum (“the notional lump sum”).

(4B)

The annual rate of the person’s retirement pension is increased by an amount which represents the value of the amount by which the notional lump sum exceeds the person’s permitted maximum.

(4C)

The increase in the annual rate of the person’s retirement pension shall be determined by the Secretary of State after taking advice from the Government Actuary. ”.