The Teachers' Pensions Regulations 2010

Commutation: small pensions E+W+S

119.—(1) Where—

(a) a retirement pension is payable to a person (P), and

(b) the conditions set out in paragraph (4) are satisfied

the Secretary of State may, on the application of P, commute that pension and any phased retirement pension additional pension or total incapacity pension paid with that pension by paying a lump sum to P.

(2) But no payment may be made under paragraph (1) if the pension includes a guaranteed minimum unless P has reached GMP age.

(3) Where a lump sum is paid under paragraph (1) neither a death grant under Part 8 (death grants) nor a pension under Part 9 (family benefits) is payable on P's death,

(4) The conditions in this paragraph are that—

(a) the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 M1 ,

(b) the application is made at the same time as P makes an application under regulation 107,

(c) no transfer value has been accepted from the scheme managers of a personal pension scheme under [F1 Part 4, Chapter 4, Section 3],

(d) during the period of 5 years ending with the application no other transfer value has been accepted, and

(e) during the period of 3 years ending with the application no cash equivalent or transfer value has been paid in respect of P.

(5) Where—

(a) a pension credit retirement pension becomes payable to a pension credit member, and

(b) the conditions set out in paragraph (6) are satisfied

the Secretary of State may, on the application of the pension credit member commute the pension by paying a lump sum to the pension credit member.

(6) The conditions in this paragraph are that—

(a) the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009, and

(b) the application is made at the same time as the pension credit member makes an application under regulation 107,

(7) Where—

(a) a pension is payable to a person (“the family member”) under Part 9 (family benefits), and

(b) the conditions set out in paragraph (8) are satisfied

the Secretary of State, may on the application of the family member commute that pension by paying a lump sum to the family member.

(8) The conditions are that—

F2 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the application is made at the same time as the family member makes an application under regulation 107 [F3 , and]

[F4 (d) the lump sum is a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to FA 2004.]

F5 ....

(9) The lump sums referred to in paragraphs (1), (5) and (7) are to be determined by the Secretary of State after taking advice from the scheme actuary.

Textual Amendments

F1 Words in reg. 119(4)(c) substituted (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 19(a)

F2 Reg. 119(8)(a)(b) omitted (1.4.2012) by virtue of The Teachers’ Pensions (Amendment) Regulations 2012 (S.I. 2012/673), regs. 1, 8

F3 Word in reg. 119(8)(c) inserted (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 19(b)(i)

F4 Reg. 119(8)(d) substituted (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 19(b)(ii)

F5 Words in reg. 119(8) omitted (1.4.2015) by virtue of The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 19(b)(iii)

Marginal Citations

M1 S.I. 2009/1171