13.—(1) The State Pension Credit Regulations 2002 M1 shall be amended in accordance with the following paragraphs.
(2) In regulation 1(2) (interpretation), after the definition of “full-time student” insert—
““the Graduated Retirement Benefit Regulations” means the Social Security (Graduated Retirement Benefit) Regulations 2005 M2;”.
(3) In regulation 18 (notional income)—
(a)at the beginning of paragraph (6) insert “ Subject to paragraph (7), ”;
(b)after paragraph (6) add—
“(7) Paragraph (6) shall not apply in respect of the amount of an increase of pension or benefit where a person, having made an election in favour of that increase of pension or benefit under Schedule 5 or 5A to the 1992 Act M3 or under Schedule 1 to the Graduated Retirement Benefit Regulations, changes that election in accordance with regulations made under Schedule 5 or 5A to that Act in favour of a lump sum.
(8) In paragraph (7), “lump sum” means a lump sum under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations.”.
(4) In Schedule V, in Part I (capital disregarded for the purpose of calculating income), after paragraph 23 insert—
“23A. Where a person elects to be entitled to a lump sum under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations, or is treated as having made such an election, and a payment has been made pursuant to that election, an amount equal to—
(a)except where sub-paragraph (b) applies, the amount of any payment or payments made on account of that lump sum;
(b)the amount of that lump sum,
but only for so long as that person does not change that election in favour of an increase of pension or benefit.”.
Marginal Citations
M3Schedule 5A is inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004 (c. 35).
