Lump sum payments17D

1

This regulation applies where the qualifying member—

a

is a qualifying member to whom Part 7 applies;

b

is a qualifying member of a qualifying pension scheme in respect of which a transfer notice has been given;

c

is not regarded as a qualifying member by virtue of regulation 15(5);

d

was not receiving a present payment under scheme rules before the day on which the transfer notice was given;

e

has made a written request to commute for a lump sum a portion of the annual payment or ill health payment to which that qualifying member is entitled no later than—

i

the day before the day on which the qualifying member becomes entitled to an annual payment or ill health payment; or

ii

such later day by which the scheme manager may determine that it will accept a written request in the case of any particular member; and

f

the notional pension determined for the qualifying member is more than nil.

2

Where this regulation applies a qualifying member shall be entitled to commute for a lump sum a portion of the payments payable or which may become payable to and in respect of that qualifying member under these Regulations—

a

subject to sub-paragraph (b), immediately before the day on which that member becomes entitled to an annual payment or ill health payment in accordance with these Regulations; or

b

where paragraph (1)(e)(ii) applies, at any point prior to the date determined by the scheme manager under that paragraph.

3

The portion commuted for a lump sum under paragraph (2) shall not exceed the revalued notional pension as construed in accordance with regulation 17(10) or, where the qualifying member is entitled to an ill health payment, regulation 17A(10).

4

The lump sum payable under paragraph (2) is the actuarial equivalent of the commuted portion of payments to be made in respect of the qualifying member in accordance with these Regulations and shall not exceed 25% of the sum of—

a

the product of 20 multiplied by the amount of the annual payment or ill health payment after commutation; and

b

the lump sum derived from the portion commuted.

5

The scheme manager shall only be bound to make a determination in relation to the amount of an annual payment or an ill health payment payable after the time within which the qualifying member may make a written request for a lump sum in accordance with paragraph (1)(e) has expired.

Redetermination of an annual payment previously determined in accordance with Schedule 417E

1

This regulation applies where, on an indexation date following the date on which the beneficiary first became entitled to an annual payment determined in accordance with Schedule 4, the aggregate of the amounts referred to in paragraph (2) is lower than the aggregate of the amounts referred to in paragraph (3).

2

The amounts in this paragraph are—

a

the amount of the annual payment determined in accordance with Schedule 4; and

b

the amount of any annual increases to which the beneficiary was entitled on the indexation date in accordance with paragraph 7 of Schedule 4.

3

The amounts in this paragraph are—

a

the amount of an annual payment which would be determined in accordance with Schedule 2 in respect of the beneficiary; and

b

the amount of any annual increases to which the beneficiary would be entitled in accordance with paragraph 9 of Schedule 2,

if the beneficiary were entitled to an annual payment determined in accordance with Schedule 2.

4

Where this regulation applies—

a

the scheme manager shall redetermine the amount of the annual payment; and

b

the beneficiary shall, from the indexation date—

i

be entitled to an annual payment determined in accordance with Schedule 2; and

ii

cease to be entitled to an annual payment determined in accordance with Schedule 4.

Redetermination of an ill health payment previously determined in accordance with Schedule 617F

1

This regulation applies where, on an indexation date following the date on which the beneficiary first became entitled to an ill health payment determined in accordance with Schedule 6, the aggregate of the amounts referred to in paragraph (2) is lower than the aggregate of the amounts referred to in paragraph (3).

2

The amounts in this paragraph are—

a

the amount of the ill health payment determined in accordance with Schedule 6; and

b

the amount of any annual increases to which the beneficiary was entitled on the indexation date in accordance with paragraph 7 of Schedule 6.

3

The amounts in this paragraph are—

a

the amount of an ill health payment which would be determined in accordance with Schedule 2A in respect of the beneficiary; and

b

the amount of any annual increases to which the beneficiary would be entitled in accordance with paragraph 9 of Schedule 2A,

if the beneficiary were entitled to an ill health payment determined in accordance with Schedule 2A.

4

Where this regulation applies—

a

the scheme manager shall redetermine the amount of the ill health payment; and

b

the beneficiary shall, from the indexation date—

i

be entitled to an ill health payment determined in accordance with Schedule 2A; and

ii

cease to be entitled to an ill health payment determined in accordance with Schedule 6.

Payments to beneficiaries other than qualifying members, survivors and surviving dependants17G

1

This regulation applies where—

a

a notional pension has been determined in accordance with regulation 27 in respect of a person who—

i

is not a qualifying member, a survivor or surviving dependant; but

ii

is a person in respect of whom the qualifying pension scheme—

aa

as a result of the death of a qualifying member, had a liability to provide a pension or other benefit at the calculation date; and

bb

would have continued to have a liability to provide that pension or other benefit had the trustees or managers not been discharged from that liability under section 161 (as modified by Schedule 1 to these Regulations); and

b

a transfer notice has been given in respect of the qualifying pension scheme.

2

Where this regulation applies, that person shall be entitled to a payment, payable in respect of a year, which is the amount determined in accordance with Schedule 7.

3

A person entitled to a payment under paragraph (2) shall be entitled to that payment—

a

from the day on which the transfer notice in respect of the qualifying pension scheme is given; and

b

until the day on which entitlement to a payment from the scheme would have ended in accordance with scheme rules.

4

The year in respect of which the payment referred to in paragraph (2) is to be made shall be the year starting on the day on which an instalment of the payment is first payable to the person by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

5

Where a person ceases to be entitled to a payment under this regulation in accordance with paragraph (3)(b)—

a

subject to sub-paragraph (b), any further instalments of such a payment that would have been payable to that person, in respect of that year, cease to be payable; and

b

any instalment of such a payment which is payable in respect of a period which includes the day on which the person has died or otherwise ceased to be entitled to a payment shall be payable.

Payments to qualifying members receiving a pension from the qualifying pension scheme before entitlement to an annual payment or ill health payment17H

1

This regulation applies where—

a

a transfer notice has been given in respect of a qualifying pension scheme;

b

a qualifying member is not entitled to an annual payment or an ill health payment; and

c

that qualifying member was receiving present payment of a pension under the scheme rules on the day on which the transfer notice is given.

2

Where this regulation applies, the qualifying member shall be entitled to a payment, payable in respect of a year, which is the amount determined in accordance with Schedule 7.

3

A qualifying member entitled to a payment under paragraph (2) shall be entitled to that payment—

a

from the day on which the transfer notice in respect of the qualifying pension scheme is given; and

b

until the earlier of—

i

the day before the day on which the qualifying member becomes entitled to an annual payment or an ill health payment; and

ii

the day on which the qualifying member dies.

4

The year in respect of which the payment referred to in paragraph (2) is to be made shall be the year starting on the day on which an instalment of the payment is first payable to the qualifying member by virtue of regulation 19 and in respect of subsequent years, on each anniversary of that day.

5

Where the qualifying member ceases to be entitled to a payment under this regulation in accordance with paragraph (3)(b)—

a

subject to sub-paragraph (b), any further instalments of such a payment that would have been payable to the qualifying member, in respect of that year, cease to be payable; and

b

where the member dies before becoming entitled to an annual payment or ill health payment, any instalment of such a payment which is payable in respect of a period which includes the day on which the qualifying member died shall be payable.