Pensions Act 2004

[F1 Terminal illness lump sum: eligibility E+W+S

Textual Amendments

F1 Sch. 7 paras. 25B-25F and cross-headings inserted (1.4.2009 for specified purposes) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 8 para. 14; S.I. 2009/809, art. 2(1)(b)(iii)

25B (1) This paragraph applies to a person in relation to whom all of the following conditions are met— E+W+S

(a) the person is terminally ill;

(b) if the person lived to the relevant age, the person would become entitled on attaining that age to relevant compensation in relation to the scheme;

(c) the person has not yet become entitled to any compensation under the pension compensation provisions in relation to the scheme;

(d) the whole or any part of the person's lifetime allowance is available.

(2) A person to whom this paragraph applies may make an application to the Board to commute the future entitlement mentioned in sub-paragraph (1)(b) for a lump sum (“a terminal illness lump sum”) payable on the granting of the application.

(3) For the purposes of this Chapter a person is “terminally ill” at any time if at that time the person suffers from a progressive disease and the person's death in consequence of that disease can reasonably be expected within 6 months.

(4) In this paragraph—

• “lifetime allowance”, in relation to a person, has the same meaning as in Part 4 of the Finance Act 2004 (c. 12) (pension schemes etc) (see section 218 of that Act);

• “relevant age”, in relation to a person, means—

  (a)

  in relation to compensation entitlement to which has been accelerated or deferred under regulations under paragraph 25 or (as the case may be) 25A, the age at which the person becomes entitled to the compensation in accordance with the regulations;

  (b)

  in relation to compensation entitlement to which has not been so accelerated or deferred, normal pension age (or, in a case to which paragraph 21 applies, normal benefit age);

• “relevant compensation” means—

  (a)

  periodic compensation under paragraph 11 or 15, or

  (b)

  lump sum compensation under paragraph 14 or 19.]