The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006

Amendment of Schedule 2 to the Additional Voluntary Contributions Regulations

40.—(1) Schedule 2 to the Additional Voluntary Contributions Regulations (pension sharing on divorce or nullity of marriage or, dissolution or nullity of a civil partnership) is amended in accordance with this regulation.

(2) In paragraph 4 (pension credit benefit)—

(a) at the end of sub-paragraph (1), add “(including, where appropriate, a pension commencement lump sum)”;

(b) after sub-paragraph (5)(a), insert—

“(aa) whether a pension commencement lump sum and a pension payable for life is to be provided;”;

(c) for sub-paragraph (7), substitute—

“(7) Upon receipt of a notice of election under sub-paragraph (5) the Secretary of State shall, as soon as reasonably practicable, realise the investments made under paragraph 2 and—

(a) where sub-paragraph (5)(aa) does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of election;

(b) where that sub-paragraph does apply—

(i) pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and

(ii) apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice,

and not otherwise.”.