PART 1Membership, contributions and benefits

Benefits

Commutation and small pensions34

1

Any authorised payments within the meaning of section 164 (authorised member payments) of the Finance Act 2004 M1 listed in sub-paragraphs (a) to (c) may be paid in accordance with the rules relating to the payment of such benefits under that Act or relevant regulations under that Act—

a

a lump sum which is a trivial commutation lump sum within the meaning of section 166 (lump sum rule) of that Act;

b

a trivial commutation lump sum death benefit within the meaning of section 168 (lump sum death benefit rule) of that Act; or

c

a commutation payment under regulations 6 (payment after relevant accretion), 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes) of the Registered Pension Schemes (Authorised Payments) Regulations 2009 M2.

2

Any payment under paragraph (1) shall be calculated in accordance with actuarial guidance issued by the Secretary of State.

F12A

In the case of an eligible member, the pension used to calculate a payment under paragraph (1) is to include—

a

where the pension is in payment—

i

any final guarantee amount calculated in respect of the eligible member’s pension account under regulation 4B or 4C of the 2014 Regulations; and

ii

any revaluation adjustment or index rate adjustment that has been applied to the retirement pension account as a consequence of a final guarantee amount;

b

where the pension is not in payment, any final guarantee amount that would be paid were the payment under paragraph (1)(a) or (c) not to proceed; or

c

where the eligible member is deceased—

i

any survivor guarantee amount payable to the survivor member in respect of the eligible member; and

ii

any revaluation adjustment or index rate adjustment that has been applied to a survivor member’s pension account as a consequence of the survivor guarantee amount.

3

If a member receives a payment under this regulation, any pension account relating to that payment must be closed and the member is entitled to no further benefits in relation to that account and no survivor benefits are subsequently payable upon the death of the member.

F24

In this regulation—

  • “eligible member” has the meaning given in regulation 4A(2) of the 2014 Regulations;

  • “survivor guarantee amount” has the meaning given in regulation 4O(3) of the 2014 Regulations.