Regulation H7 Commutation of benefits

Subject to paragraph (2), where the aggregate of the retiring allowances (retirement pensions and actuarial equivalent as an annual pension of the retirement lump sum) and any benefits payable to a teacher under any additional voluntary contributions scheme to which section 591(2)(h) or section 592(1)(b) of the Taxes Act applies is an annual amount not exceeding the permitted maximum, the Secretary of State may discharge his liability in respect of–

• by payment of a lump sum representing the capital value of the retiring allowances and family benefits.

Paragraph (1) shall not apply unless the teacher became entitled to receive payment of the retiring allowances on or after attaining state pensionable age.

Where a teacher has died and the aggregate of any family benefits, and like benefits provided under an additional voluntary contributions scheme, payable in respect of the teacher is an annual amount not exceeding the permitted maximum, the Secretary of State may discharge his liability in respect of the family benefits by the payment of a lump sum representing their capital value.

The lump sum payable under paragraph (1) or (3) shall be determined by, or in accordance with tables prepared by, the Government Actuary.

In this regulation the permitted maximum is £104 or such higher amount as may be prescribed from time to time by Regulations made under paragraph 15(4) of Schedule 16 to the Social Security Act 1973^f1 and section 39(1) of the Pensions Act.

In this regulation “additional voluntary contributions scheme” means an approved scheme which falls within section 591(2)(h) of the Taxes Act.