58.—[F1(1) A member (other than a pension credit member whose rights under [F2this Section of] the Scheme are attributable to a disqualifying pension credit for the purpose of paragraph 2 of Schedule 29 to the Finance Act 2004) may opt to exchange part of a pension to which the member would otherwise be entitled for a lump sum.]
(2) If a member so opts, for every £1 by which the member's annual amount of a pension is reduced, the member is to be paid a lump sum of £12.
(3) An option under paragraph (1) must relate to an annual amount of pension that is a whole number of pounds (and accordingly the lump sum will be exactly divisible by 12).
(4) In paragraphs (2) and (3) “annual amount”, in relation to a pension, means the amount of the annual pension to which the member would be entitled under this Chapter apart from the option, together with any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971, calculated as at the time payment would first be due.
(5) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 of the Finance Act 2004 (see, in particular, section 241 of, and paragraph 1 of Schedule 29 to, that Act).
(6) If the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the whole or part of a pension, paragraph (1) only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member's description in tables provided by the Scheme actuary.
(7) The option under this regulation may only be exercised by giving notice in writing to the Department in such form as it requires—
(a)at the time of claiming the pension, or
(b)before such later time as the Department specifies in writing.
[F3This is subject to paragraphs (8) and (9).]
[F4(8) If the pension is an ill-health pension under regulation 52, the option under this regulation may only be exercised by giving notice in writing to the Department in such form as it requires—
(a)where the member is awarded—
(i)a tier 1 pension under paragraph (2) of that regulation, at the time of claiming that tier 1 pension,
(ii)a tier 2 pension under paragraph (3) of that regulation, at the time of claiming that tier 2 pension; or
(b)before such later time as the Department specifies in writing.
(9) If the pension is a tier 2 ill-health pension under regulation 53, in substitution for a tier 1 ill-health pension under regulation 52, the option under this regulation may only be exercised—
(a)in relation to the difference between the tier 1 pension that ceases to be payable in accordance with paragraph (3) of regulation 53 and the tier 2 pension to which the member becomes entitled under that paragraph; and
(b)by giving notice in writing to the Department in such form as it requires—
(i)at the time of award of the tier 2 pension under that paragraph, or
(ii)before such later time as the Department specifies in writing.]
[F5(10) In the case of a 2008 Section Optant, this regulation is subject to paragraph (4) of regulation 136H and regulation 136L.]
Textual Amendments
F1Reg. 58(1) substituted (with effect in accordance with reg. 1(3)(c) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Injury Benefits) and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2009 (S.R. 2009/188), regs. 1(2), 30(2)
F2Words in reg. 58(1) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), reg. 1(2), Sch. 2 Pt. 1
F3Words in reg. 58(7) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Injury Benefits) and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2009 (S.R. 2009/188), regs. 1(2), 30(3)
F4Reg. 58(8)(9) added (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Injury Benefits) and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2009 (S.R. 2009/188), regs. 1(2), 30(4)
F5Reg. 58(10) added (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), regs. 1(2), 36