The Financial Assistance Scheme Regulations 2005

[F1 Lump sum payments U.K.

17D.— (1) This regulation applies where the qualifying member—

(a) is a qualifying member to whom Part 7 applies;

(b) is a qualifying member of a qualifying pension scheme in respect of which a transfer notice has been given;

(c) is not regarded as a qualifying member by virtue of regulation 15(5);

(d) was not receiving a present payment under scheme rules before the day on which the transfer notice was given;

(e) has made a written request to commute for a lump sum a portion of the annual payment or ill health payment to which that qualifying member is entitled no later than—

(i) the day before the day on which the qualifying member becomes entitled to an annual payment or ill health payment; or

(ii) such later day by which the scheme manager may determine that it will accept a written request in the case of any particular member; and

(f) the notional pension determined for the qualifying member is more than nil.

(2) Where this regulation applies a qualifying member shall be entitled to commute for a lump sum a portion of the payments payable or which may become payable to and in respect of that qualifying member under these Regulations—

(a) subject to sub-paragraph (b), immediately before the day on which that member becomes entitled to an annual payment or ill health payment in accordance with these Regulations; or

(b) where paragraph (1)(e)(ii) applies, at any point prior to the date determined by the scheme manager under that paragraph.

(3) The portion commuted for a lump sum under paragraph (2) shall not exceed the revalued notional pension as construed in accordance with regulation 17(10) or, where the qualifying member is entitled to an ill health payment, regulation 17A(10).

(4) The lump sum payable under paragraph (2) is the actuarial equivalent of the commuted portion of payments to be made in respect of the qualifying member in accordance with these Regulations and shall not exceed 25% of the sum of—

(a) the product of 20 multiplied by the amount of the annual payment or ill health payment after commutation; and

(b) the lump sum derived from the portion commuted.

(5) The scheme manager shall only be bound to make a determination in relation to the amount of an annual payment or an ill health payment payable after the time within which the qualifying member may make a written request for a lump sum in accordance with paragraph (1)(e) has expired.]

Textual Amendments

F1 Regs. 17D-17H inserted (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 10(1)