Modifications etc. (not altering text)
C1Pt. 14 Ch. 5 excluded (1.5.1995) by Finance Act 1995 (c. 4), s. 60(5)
M1(1)The lump sum must be payable only if the member so elects on or before [F1his pension date under the arrangements in question].
(2)The lump sum must be payable [F2on the date which is his pension date under the arrangements in question].
[F3(3)The lump sum must not exceed one quarter of the difference between—
(a)the total value, at the time when the lump sum is paid, of the benefits provided for by [F4the arrangements in question], and
(b)the value, at that time, of such of the member’s rights [F5under those arrangements] as are protected rights for the purposes of the [F6Pension Schemes Act 1993] or the [F7Pension Schemes (Northern Ireland) Act 1993].]
(4)The lump sum must not exceed £150,000or such other sum as may for the time being be specified in an order made by the TreasuryF8.
(5)The right to payment of the lump sum must not be capable of assignment or surrender [F9, except for the purpose of giving effect to a pension sharing order or provision].
Textual Amendments
F1Words in s. 635(1) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 5(2)
F2Words in s. 635(2) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 5(3)
F31989 s.77and Sch.7 para.2(2)in relation to the approval of a scheme on or after 27July 1989but if the scheme came into existence before 27July 1989 para.2(2)shall not have effect as regards arrangements made by a member in accordance with the scheme before that date. Previously
“(3) The lump sum must not exceed one quarter of the total value, at the time when the lump sum is paid, of the benefits for the member provided for by the arrangements made by him in accordance with the scheme.”.
F4Words in s. 635(3)(a) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 5(4)(a)
F5Words in s. 635(3)(b) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 5(4)(b)
F6Words in s. 635(3)(b) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), ss. 190, 193(2), Sch. 8 para. 20(2) (with ss. 6(8), 164); S.I. 1994/86, art. 2
F7Words in s. 635(3)(b) substituted (7.2.1994) by Pension Schemes (Northern Ireland) Act 1993 (c. 49), ss. 184, 186(2), Sch. 7 para. 22(1); S.R. 1994/17, art. 2
F8 Words repealed by 1989 ss.77, 187and Schs.7 para. 2(3)and 17 Part IVin relation to approvals on or after 27July 1989.
F9Words in s. 635(5) inserted (with application in accordance with Sch. 10 para. 18(8)(9) of the amending Act) by Finance Act 1999 (c. 16), Sch. 10 para. 12(3); S.I. 2000/1093, art. 2
Marginal Citations
M1Source-1987 (No.2) s.23