PART 9Commutation of periodic compensation

Circumstances in which periodic compensation may be commuted28.

(1)

The circumstances prescribed for the purposes of paragraph 9(1) (commutation) of Schedule 5 to the Act are specified in paragraph (2).

(2)

The circumstances are that—

(a)

the transferor must not have previously exercised an option to commute for a lump sum either—

(i)

a portion of the pension from which the pension compensation credit was derived; or

(ii)

a portion of the relevant pension compensation from which the pension compensation credit was derived;

(b)

the transferee must not have previously exercised an option to commute for a lump sum a portion of the pension compensation credit in respect of which they are entitled to periodic compensation; and

(c)

the transferee exercises the option to commute within the period of six months beginning with the day on which payment of periodic compensation commences.