PART 5Retirement benefits

CHAPTER 5Payment of retirement benefits

F1Option to commute part of an equivalent amount79A

1

A member who becomes entitled to the immediate payment of an equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the FPS lower tier ill-health pension may opt under this regulation to exchange part of the pension for a lump sum.

2

The option may only be exercised—

a

by written notice to the scheme manager which sets out the amount to be commuted; and

b

before the first payment of the equivalent amount to the NFPS lower tier ill-health pension or to an equivalent amount to the FPS lower tier ill-health pension is made.

3

Where the person is entitled to the immediate payment of an equivalent amount to the NFPS lower tier ill-health pension and exercises the option to commute under this article, the lump sum is calculated—

a

in the case of a person who is a connected member of the NFPS in accordance with paragraphs (2) and (4) of article 19 (commutation: general) of Part 3 of the NFPS, and

b

in the case of a person who is a connected special member of the NFPS in accordance with paragraphs (2A), (4) and (4A) of article 19 of Part 3 of that Scheme.