The Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996

Trivial commutation of benefits derived from section 5(2B) rights

20.  For the purposes of section 8C(1)(c) of the Act(1) (regulations may prohibit or restrict the payment of a lump sum instead of a pension under a relevant scheme except in prescribed circumstances or on prescribed conditions), any benefits which have accrued in respect of an earner’s section 5(2B) rights under a scheme may not be paid as a lump sum instead of a pension unless—

(a) such benefits are payable under the rules of the scheme;

(b) the aggregate of all benefits including benefits in respect of section 5(2B) rights payable to the earner (or his widow or widower) does not exceed £260 per annum, and

(c) the Department is satisfied that the scheme provides a reasonable basis for ascertaining the sum to be paid on commutation.

(1)

Sections 8C and 8D were inserted by Article 133(5) of the Pensions (Northern Ireland) Order 1995