SCHEDULE 14Lump sum on death
Death of partial retirement pensioner
7.
(1)
A lump sum on death is payable under this paragraph in respect of the death of a partial retirement pensioner.
(2)
The amount of the lump sum on death payable is equal to the sum of—
(a)
the appropriate fraction of an amount that is the better of—
(i)
twice the member's relevant earnings; and
(ii)
twice the member's re-valued pensionable earnings for the scheme year falling in the earnings reference period which has the largest re-valued pensionable earnings; and
(b)
the lesser of—
(i)
the total of the amounts found by virtue of paragraph 4(2)(a) for each pension drawn down under regulation 84; and
(ii)
the appropriate fraction of an amount that is the better of—
(aa)
twice the member's re-valued pensionable earnings for the period of 12 months ending on the date on which the member last exercised the option under regulation 84; and
(bb)
twice the member's re-valued pensionable earnings for the scheme year falling in the earnings reference period which has the largest re-valued pensionable earnings,
less any lump sum paid to the member in exchange for pension under regulation 77 as a result of the member exercising the option under regulation 84.
(3)
In this paragraph—
“appropriate fraction” means—
where—
DPS is, where the member continues in pensionable service as an active member on the election day (or the last such election day if the option has been exercised more than once), the total number of days of pensionable service which do not relate to the specified percentage of pension at the election day; and
TDPS is the aggregate of DPS and the total number of days of pensionable service (at the election day or the last such election day if the option has been exercised more than once) which relate to the specified percentage of pension payable;
“election day” has the meaning given in regulation 84;
F1“re-valued pensionable earnings” means, in relation to a scheme year, an amount equal to the actual pensionable earnings for the year increased by the same amount as that by which an annual pension equal to that amount would have been increased for the first time under the Pensions (Increase) Act 1971 at the relevant day if—
(a)
the pension was eligible to be so increased;
(b)
the beginning date for the pension was the first day of the following scheme year; and
(c)
the relevant day was the member’s last day of pensionable service.