The Firefighters’ Pension Scheme (England) Regulations 2014

Option to commute part of pension

71.—(1) A member who becomes entitled to the immediate payment of a retirement pension may opt under this regulation to exchange part of the pension for a lump sum.

(2) The option may only be exercised—

(a) by written notice to the scheme manager which sets out the amount to be commuted; and

(b) before the first payment of the pension is made.

(3) If a member exercises the option, for every £1 by which the amount of the member’s annual rate of pension is reduced, the member must be paid a lump sum of £12.

(4) A member may not exchange more than the lesser of—

(a) 25% of the pension for a lump sum under this regulation; or

(b) the proportion of the pension to the extent that it would result in a scheme chargeable payment(1) for the purposes of Part 4 of FA 2004.

(5) This regulation does not apply to a pension derived from pension credit rights if the pension debit member from whose rights the pension is derived has received a lump sum under this regulation before the date on which the pension sharing order takes effect.

(6) This regulation does not apply to a higher tier ill-health pension.

(1)

See section 241 of the Finance Act 2004.