Regulation 16 Payment by Secretary of State
Where pursuant to an election under Regulation 5(2) or 12(5) the Secretary of State purchases on or after 30th November 1992 a pension policy from an authorised provider specified by the elector other than the insurance company referred to in regulation 9, the Secretary of State shall not be liable for payment of any pension under that policy.
Where pursuant to an election under Regulation 5(2) or 12(5) the Secretary of State purchases a pension policy from the insurance company referred to in regulation 9, or before 30th November 1992 purchases a pension policy from any other authorised provider, the Secretary of State shall be liable to make to the person entitled to it any payment of pension under the policy which has not been made by the insurance company or other authorised provider.
Lump sums payable—
as mentioned in regulation 12(6); or
under regulation 12(8) or 13(1) or 13(2)(b),
shall be paid by the Secretary of State to the deceased’s spouse or, if there is no spouse, to the deceased’s legal personal representatives.
Lump sums payable under regulation 12(9), 12(10) or 15 shall be paid by the Secretary of State to the former contributor.
Subject to paragraph (6), if when a participator dies a lump sum would have been payable under regulation 12(8), but the whole or part of that sum cannot be paid under regulation 12(8) by reason of regulation 14 and paragraph 13 of the Schedule to these Regulations, the Secretary of State shall pay to the participator’s legal personal representatives the amount which cannot be paid under Regulation 12(8), so far as it does not exceed the prescribed amount, but subject to any deduction of tax under paragraph (10).
In the circumstances specified in paragraph (5), instead of making payment under that paragraph the Secretary of State may, after taking into account any wishes expressed in writing of the deceased participator and with the consent of that participator’s legal personal representatives, apply the amount which cannot be paid under Regulation 12(8), or any part of it, for the purchase from an authorised provider of one or more dependants' pensions, as defined in Regulation 12(3), and these Regulations (including Regulation 14 and the Schedule) shall apply to such dependants' pensions as they apply to dependants' pensions purchased under Regulation 12(7).
Where after purchase of dependants' pensions under paragraph (6) any part remains of the amount which cannot be paid under Regulation 12(8), the Secretary of State shall pay to the participator’s legal personal representatives that part, so far as it does not exceed the prescribed amount, but subject to any deduction of tax under paragraph (10).
Subject to paragraph (10), if by reason of regulation 14 and the Schedule to these Regulations a pension provided under regulation 12 is not payable in full, the Secretary of State shall pay to the participator an amount, or aggregate of amounts, not exceeding the prescribed amount, out of the investments realised by virtue of regulation 12(7) which would otherwise have been applicable to the purchase of the pension.
In paragraphs (5) and (8) the reference to a prescribed amount is to an amount calculated in accordance with the method for the time being specified in regulations made for the purposes of section 591 of the Taxes Act as the method to be used for calculating the amount of any surplus funds.
The amount of any tax chargeable under the Taxes Act on payments made under these regulations shall be deducted by the Secretary of State before payment.