Marginal Citations
M1Source—1987 (No. 2) c. 51, Sch.3 Pt. II
4(1)This paragraph applies where an employee becomes a member of the scheme on or after 17th March 1987 and the scheme provides a lump sum or sums for him otherwise than by commutation of his pension or part of it.
(2)If the employee’s pension is equal to or less than a basic rate non-commutable pension, the rules of the scheme shall have effect (notwithstanding anything in them to the contrary) as if they did not allow the payment to him, otherwise than by way of commutation, of a lump sum or sums exceeding in all a basic rate lump sum.
(3)If the employee’s pension is greater than a basic rate non-commutable pension but less than a maximum rate non-commutable pension the rules of the scheme shall have effect (notwithstanding anything in them to the contrary) as if they did not allow the payment to him, otherwise than by way of commutation, of a lump sum or sums exceeding in all the aggregate of—
(a)a basic rate lump sum, and
(b)an amount equal to the relevant percentage of the difference between a basic rate lump sum and a maximum rate lump sum.
(4)In this paragraph, as it applies in relation to an employee—
(a)a “basic rate non-commutable pension” means a pension of one-eightieth of his relevant annual remuneration for each year of service up to a maximum of 40,
(b)a “maximum rate non-commutable pension” means a pension of one-fortieth of his relevant annual remuneration for each year of service up to a maximum of 20,
(c)“basic rate lump sum” and “maximum rate lump sum” have the same meanings as in paragraph 3 above, and
(d)“the relevant percentage” means the difference between a basic rate non-commutable pension and the employee’s actual pension expressed as a percentage of the difference between a basic rate non-commutable pension and a maximum rate non-commutable pension.
Modifications etc. (not altering text)
C1 See S.I.1988 No.1436 (in Part III Vol.5)for circumstances when paras.2-4, 5(2), 5(3), 6and 7disapplied.