(1)The Secretary of State may by regulations make provision about the calculation of lump sums in circumstances where—
(a)a member of an occupational pension scheme, or a survivor of a member of the scheme, has subsisting rights in respect of any flexible benefits other than money purchase benefits under the scheme, and
(b)the member or survivor exercises an option to be paid a lump sum in respect of any of those benefits.
(2)Regulations under subsection (1) may, in particular, make provision about how the rate or amount of any remaining benefits are to be calculated in future.
(3)In a case where a member or survivor exercises an option to be paid a lump sum before reaching normal pension age, regulations under subsection (1) may in particular make provision about—
(a)the manner in which benefits are to be calculated for the purpose of determining the amount available for the payment of the lump sum;
(b)the use of any power to reduce the amount of the lump sum.
(4)Regulations made under this section may include provision for them to override the provisions of a pension scheme to the extent that there is a conflict.