Article 23ZE Individual dies after becoming entitled to at least one but not all of the pensionsF1

In a case to which this article applies, Part 4 is modified as follows.

For section 166(2)(a) (lump sum rule) substitute—

“(a)

in the case of a pension commencement lump sum or a pension commencement excess lump sum, immediately before the person becomes entitled to any of the pensions in connection with which it was anticipated that it would be paid,”.

For paragraph 31(3) of Schedule 36 substitute—

“(3)

The pension condition is that, the scheme administrator considers that, had the individual not died—

(F3a)

the individual would have become entitled to all of the pensions payable to the individual under arrangements under the pension scheme (to which the individual did not have an actual entitlement on or before 5th April 2006) within a period of six months beginning with the earliest date on which the individual became entitled to any of the pensions F4, and

(b)

the individual would not have become entitled to more than one pension commencement lump sum in connection with becoming entitled to those pensions. ”.

In determining the amount of the additional lump sum amount under paragraph 2(2) of Schedule 29, as modified by paragraph 34(3) of Schedule 36 (entitlement to lump sums exceeding 25% of uncrystallised rights: definition of “permitted maximum” in relation to a pension commencement lump sum), it is to be assumed that the member became entitled immediately before death to the present payment of each of the pensions in connection with which the lump sum in question is paid.