Social Security Contributions and Benefits Act 1992

[F1 Calculation of lump sum E+W+S

Textual Amendments

F1 Sch. 5A inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 15

5 (1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment. E+W+S

(2) In this paragraph—

• ‘accrued amount’ means the amount calculated in accordance with sub-paragraph (3);

• ‘accrual period’ means any period of seven days beginning with a prescribed day of the week, where that day falls within the period of deferment.

(3) The accrued amount for an accrual period for a person is—

where—

• A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);

• P is the amount of the shared additional pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;

• R is—

  (a)

  a percentage rate two per cent. higher than the Bank of England base rate, or

  (b)

  if a higher rate is prescribed for the purposes of paragraphs 3B and 7B of Schedule 5, that higher rate.

(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a) at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b) if regulations so provide, at such other time as may be prescribed.

(5) For the purpose of the calculation of the lump sum, the amount of the shared additional pension to which the person would have been entitled for an accrual period does not include, in prescribed circumstances, such amount as may be prescribed.

(6) The lump sum must be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.]