The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

Commutation of trivial pensions

29.1  If at the date when a pension becomes payable from the CAA Section to or for the benefit of any person such pension together with the annuity equivalent of all other retirement benefits to which such person is entitled from the Employers' Schemes or other Sections of the Scheme does not exceed £260 per annum (or such higher amount as may have been prescribed by regulations made under section 91 of the Pensions Act 1995(1) and is acceptable to the Board of Inland Revenue), the Trustees may commute that pension for a cash sum payable to or for the benefit of such person. If the Trustees commute a Member’s pension as described above and if there is a pension contingently payable from the CAA Section on such Member’s death which could (if the Member had died on the date his pension became payable) have been commuted in accordance with this Rule 29.1, then the Trustees will forthwith commute such pension for a cash sum payable to the Member, provided always that in the case of a Member whose pension from the CAA Section becomes payable before Normal Pension Date:

(a) if such Member is a member of more than one retirement benefits scheme relating to the same employment (including any other Section of the Scheme), commutation under this Rule 29.1 shall be permissible only if he is treated by all such schemes as having retired and if provisions corresponding to this Rule 29.1 apply under such other schemes; and

(b) in determining the amount of the Member’s pension for the purposes of this paragraph the Trustees shall with the advice of the Actuary take due account of:

(i) increases in the Member’s Guaranteed Minimum Pension (if any) required to be made up to State Pensionable Age in such a way as to satisfy the provisions of section 21 of the Pension Schemes Act 1993(2) and any regulations made for the purposes of that section; and

(ii) increases to that part of the Member’s pension hereunder which exceeds the Member’s Guaranteed Minimum Pension (if any) which would, in the opinion of the Trustees, be made to the Member’s pension hereunder up to Normal Pension Date in accordance with Schedule 3 to the Pension Schemes Act 1993 if such pension had become payable at Normal Pension Date.

(1)

1995 c. 26; section 91 is amended by the Welfare Reform and Pensions Act 1999 (c. 30), section 84(1) and Schedule 12, Part I, paragraphs 43 and 57.

(2)

1993 c. 48.