118.—(1) Where a person (P) F1... has a life expectancy of less than a year at the time when—
(a)a retirement pension which is paid because Case A applies to P's reckonable service, or
(b)an ill-health pension
becomes payable to P, the Secretary of State may, on the application of P, commute the pension and any phased retirement pension, additional pension or total incapacity pension paid with the pension by paying a lump sum specified in paragraph (2).
(2) The lump sum is—
(a)a sum equal to 5 x the annual rate of the retirement pension and any total incapacity pension, and
(b)a sum equal to (A-B) x the annual rate of any phased retirement pension where—
A is 5, and
B is the period (in years and fractions of a year) from the date on which the phased retirement pension was first paid until the date of the application (and accordingly if this period is 5 years or more no lump sum is payable in respect of a phased retirement pension).
(3) Where a pension credit member (P) F2... has a life expectancy of less than a year at any time before or at the time when a pension credit member's pension becomes payable to P, the Secretary of State may, on the application of P, commute the pension by paying a lump sum equal to 5 times the annual rate of the pension.
(4) An application must
(a)be in writing,
(b)be made at the same time as the person makes an application under regulation 107 (payment of benefits on application to Secretary of State),
(c)be accompanied by all the medical evidence necessary for the Secretary of State to determine that P is entitled to the commutation.
(5) Where P's application is in respect of a pension in respect of which P is eligible to apply under regulation 116 (election to receive lump sum in place of part of pension)—
(a)P is to be treated as applying under that regulation to receive the largest permissible lump sum in place of part of the pension, and
(b)the reference in this regulation to the annual rate of the pension is to the annual rate reduced in accordance with regulation 116.
Textual Amendments
F1Words in reg. 118(1) omitted (1.4.2012) by virtue of The Teachers’ Pensions (Amendment) Regulations 2012 (S.I. 2012/673), regs. 1, 7
F2Words in reg. 118(3) omitted (1.4.2012) by virtue of The Teachers’ Pensions (Amendment) Regulations 2012 (S.I. 2012/673), regs. 1, 7