PART 7Benefits for pension credit members
Option for pension credit member to commute part of pension89
1
A pension credit member who becomes entitled to payment of a pension credit member's pension under this scheme may opt to exchange part of the pension for a lump sum.
2
The option under this regulation may only be exercised—
a
by notice to the scheme manager in a form required by the scheme manager; and
b
before the first payment of the pension is made.
3
If a pension credit member exercises the option under this regulation, for every £1 by which the amount of the member's annual rate of pension is reduced, the member must be paid a lump sum of £12.
4
A pension credit member may not exchange pension for a lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 (pension schemes etc.) of the 2004 Act.
5
This regulation does not apply if the pension debit member from whose rights the pension is derived received a lump sum under Part 7 before the date on which the pension sharing order takes effect.