The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011

Circumstances in which periodic compensation may be commutedU.K.

28.—(1) The circumstances prescribed for the purposes of paragraph 9(1) (commutation) of Schedule 5 to the Act are specified in paragraph (2).

(2) The circumstances are that—

(a)the transferor must not have previously exercised an option to commute for a lump sum either—

(i)a portion of the pension from which the pension compensation credit was derived; or

(ii)a portion of the relevant pension compensation from which the pension compensation credit was derived;

(b)the transferee must not have previously exercised an option to commute for a lump sum a portion of the pension compensation credit in respect of which they are entitled to periodic compensation; and

(c)the transferee exercises the option to commute within the period of six months beginning with the day on which payment of periodic compensation commences.