Temporary right to pay off liabilities under regulation 15 by capital payment
16.—(1) A member to whom regulation 14 applies by virtue of regulation 15(1), may make an election to make a capital payment in full satisfaction of his liabilities in respect of any period for which he remains liable to make any payment by virtue of regulation 15(1).
(2) Such an election may only be made by notice in writing to the member’s appropriate administering authority before the end of the period of six months beginning with the commencement date.
(3) When an administering authority receive such an election they must notify the member of the amount of the capital payment required.
(4) However, if that capital payment, when aggregated with the member’s total contributions (as mentioned in regulation 15(2) of the 1998 Regulations) payable in the tax year in which he makes the election, would exceed the maximum amount so payable by him, such an election is ineffective.
(5) Where following a payment under such an election any body’s liabilities in respect of the member under regulation P13 of the 1987 Regulations continue by virtue of regulation 20(3), then, despite that regulation, he is entitled to count a period of membership of the same length as if all payments to be made in respect of that period under regulation P13 of the 1987 Regulations had been made.