59.—(1) An active member, a deferred member or a pension credit member may opt to exchange a relevant pension for a lump sum if the Department is satisfied that the conditions for the lump sum to be a serious ill-health lump sum for the purposes of the Finance Act 2004 will be met (see paragraph 4 of Schedule 29 to that Act).
(2) For the purposes of paragraph (1), a “relevant pension” is a pension payable to that member under—
(a)regulation 45 (normal retirement pensions),
(b)regulation 46 (pension credit members' pensions),
(c)regulation 52 (early payment of pensions: ill-health), or
(d)regulation 54 (early retirement on ill-health (deferred members)).
(3) The option may only be exercised—
(a)in the case of a pension payable under regulation 45 or 46, before or at the time when the pension becomes payable,
(b)in the case of a pension payable under regulation 52 or 54, before the pension becomes payable to the member.
(4) An active member aged 65 or over who exercises the option is to be paid, as soon as is reasonably practicable and before reaching the age of 75, an amount equal to the sum of—
(a)the maximum lump sum to which the member could have become entitled on exercising the option under regulation 58 if at the appropriate time the member had become entitled to a pension under regulation 45, and
(b)the total annual amount of the pension to which the member would have been entitled under regulation 45 after exercising that option, multiplied by 5.
(5) A pension credit member who exercises the option is to be paid, as soon as is reasonably practicable and before reaching the age of 75, an amount equal to the annual amount of the pension to which the member would have been entitled under regulation 46, multiplied by 5.
(6) An active member entitled to a pension under regulation 52 who exercises the option is to be paid, as soon as is reasonably practicable, an amount equal to the sum of—
(a)the maximum lump sum to which the member could have become entitled on exercising the option under regulation 58 at the appropriate time, and
(b)the total annual amount of the pension to which the member is entitled under regulation 52 after exercising that option, multiplied by 5.
(7) A deferred member entitled to a pension under regulation 54 who exercises the option is to be paid, as soon as is reasonably practicable, an amount equal to the sum of—
(a)the maximum lump sum to which the member could have become entitled on exercising the option under regulation 58 at the appropriate time, and
(b)the total annual amount of the pension to which the member is entitled under regulation 54 after exercising that option, multiplied by 5.
(8) In this regulation “the appropriate time” means—
(a)for the purposes of paragraphs (4) and (5) the time when the option under this regulation is exercised, and
(b)for the purposes of paragraphs (6) and (7) the time payment of the pension under regulation 52 or, as the case may be, regulation 54 would otherwise first be due.
(9) In this regulation references to the “annual amount” of a pension are to the amount of the annual pension to which the member would be entitled, together with any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971, calculated as at the appropriate time.
(10) The option under this regulation may only be exercised by notice in writing to the Department in such form as the Department requires.