The State Pension Regulations 2015

[F1 Choice of lump sum or state pension based on inheritance of deferred graduated retirement benefit U.K.

18.— (1) Subject to paragraph (8), a person is entitled to a choice under this regulation if—

(a) that person has reached pensionable age;

(b) that person’s spouse died while they were married or that person’s civil partner died while they were civil partners of each other;

(c) the spouse’s or civil partner’s entitlement to graduated retirement benefit was deferred at the time of death and throughout the period of 12 months ending with the day before the death; and

(d) either—

(i) that person was under pensionable age when the spouse or civil partner died and did not marry or form a civil partnership between the date of death and the date that person reached pensionable age; or

(ii) that person was over pensionable age when the spouse or civil partner died.

(2) The person may choose to be paid—

(a) a lump sum under regulation 19; or

(b) a state pension under regulation 20.

(3) The manner in which that choice is to be made is the manner set out in regulation 5(2) and (3).

(4) The period within which that choice is to be made is the period set out in regulation 4(2) and (3) and a person may make a late choice after that period where—

(a) the Secretary of State considers it is reasonable in any particular case; and

(b) any amount paid by way of (or on account of) a lump sum under regulation 19 has been repaid to the Secretary of State—

(i) in full; and

(ii) in the currency in which that amount was originally paid.

(5) Where the person fails to make a choice within the period set out in regulation 4(2) and (3), they are to be paid a lump sum under regulation 19.

(6) The amount of any lump sum to be paid to the person under regulation 19 is reduced to nil where the person makes a late choice under paragraph (4) to be paid a state pension under regulation 20.

(7) A choice under this regulation may be altered in the circumstances specified in regulation 6(2), and for that purpose—

(a) regulation 6(3) applies where the circumstance in regulation 6(2)(f) applies;

(b) any references in regulation 6(2) and (3) to section 8 of the 2014 Act are to be read as references to regulation 19; and

(c) any references in regulation 6(2) and (3) to section 9 of the 2014 Act are to be read as references to regulation 20.

(8) A person is not entitled to a choice under this regulation if they are entitled to a choice under section 8(2) of the 2014 Act.

(9) Where paragraph (1) applies to a person and that person makes a choice under—

(a) section 8(2)(a) of the 2014 Act, they are to be paid a lump sum under regulation 19 (subject to paragraph (10));

(b) section 8(2)(b) of the 2014 Act, they are to be paid a state pension under regulation 20 (subject to paragraph (10)).

(10) Where paragraph (1) applies to a person and that person alters a choice under regulation 6—

(a) they are to be paid a lump sum under regulation 19 where their new choice is to be paid a lump sum under section 8 of the 2014 Act;

(b) they are to be paid a state pension under regulation 20 where their new choice is to be paid a state pension under section 9 of the 2014 Act.

(11) Where paragraph (1) applies to a person and that person fails to make a choice under section 8(2) of the 2014 Act, they are to be paid a lump sum under regulation 19.]

Textual Amendments

F1 Pts. 6, 7 inserted (6.4.2016 immediately after S.I. 2015/173 comes into force) by The State Pension and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/199), reg. 4 (with reg. 1(5))