Regulation 62 Amount of phased retirement and retirement lump sum

(1)

This regulation applies for calculating the amount of phased retirement and retirement lump sums.

(2)

The amount of the lump sum of a person (P) is the amount mentioned in paragraph (4) less the total of the benefits mentioned in paragraph (5) previously payable to P other than any already deducted in the calculation of a lump sum (whether under this regulation or regulation 117(5) (person to be treated as electing to receive lump sum in place of pension)

(3)

But no lump sum may exceed P's permitted maximum.

(4)

The amount is 3/80 x P's average salary x P's NPA 60 reckonable service to which a Case applies (in years and fractions of a year).

(5)

The benefits are—

(a)

any phased retirement lump sum in a case where the phased retirement pension payable with the lump sum ceased to be payable under regulation 59 (cessation of phased retirement pension);

(b)

any ill-health lump sum;

(c)

any total incapacity lump sum;

(d)

any lump sum under regulation 116 (election to receive lump sum in place of pension) other than a lump sum attributable to—

(i)

a phased retirement pension except where the pension ceased to be payable under regulation 59 (cessation of phased retirement pension), or

(ii)

an additional pension;

(e)

any short-service incapacity grant, in a case where, after the grant became payable, P re-entered pensionable employment before 1st September 2010.

(6)

The amount calculated in accordance with paragraph (4) must be multiplied by the appropriate factor for a person with NPA 60 reckonable service—

(a)

where the lump sum is a phased retirement lump sum, if P is under 60 on the relevant date;

(b)

where the lump sum is a retirement lump sum, if Case D or Case E applies to P's NPA 60 reckonable service.

(7)

In this regulation—

“permitted maximum” must be construed in accordance with paragraph 2 of Schedule 29 to FA 2004;
“relevant date” has the same meaning as in regulation 57(9) (election to receive phased benefits).

Notes on Part 7

Modifications

C1: Pt. 7 applied (1.4.2015) by The Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015 (S.I. 2015/601), regs. 1, 4 (with reg. 44(2)(3))