The Teachers’ Pensions Regulations 2010

Election to receive lump sum in place of part of pension

116.—(1) A person who was in pensionable employment on or after 1st January 2007 may elect to receive a lump sum in place of—

(a)part of any phased retirement pension, or

(b)part of one or more of—

(i)any retirement pension,

(ii)any additional pension, or

(iii)any total incapacity pension

by giving written notice to the Secretary of State.

(2) But paragraph (1) only applies where the person complies with regulation 107 (payment of benefits on application to Secretary of State) relating to the pension before the person reaches the age of 75.

(3) For the purpose of paragraph (1), a person is to be treated as being in pensionable employment on or after 1st January 2007 if the person has paid contributions under regulation C9 of TPR 1997 or regulation 19 (election to pay contributions by a person serving in a reserve force) for a period which ends on or after that date.

(4) A pension credit member (PCM) whose credit is derived from rights which include rights attributable to the pension debit member’s pensionable employment on or after 1st January 2007 may, if the condition in paragraph (5) is satisfied, elect to receive a lump sum in place of part of PCM’s pension credit retirement pension by giving notice in writing to the Secretary of State.

(5) The conditions are—

(a)that no payment of any pension to the corresponding pension debit member had been initiated before the transfer day unless that pension relates to pensionable employment which was not taken into account in determining the rights from which PCM’s credit is derived, and

(b)PCM complies with regulation 107 (payment of benefits on application to Secretary of State) relating to the pension credit member’s pension before PCM reaches 75.

(6) For the purpose of paragraph (4), a pension credit member’s credit is to be treated as attributable to pensionable employment on or after 1st January 2007 if it is attributable to contributions paid under regulation C9 of TPR 1997 or regulation 19 (election to pay contributions by a person serving in a reserve force) for a period which ends on or after that date.

(7) The notice under paragraph (1) or (4) must—

(a)be given at the same time as the person makes an application under regulation 107 for the pension, and

(b)specify the amount of the lump sum which the person wishes to receive and, where appropriate, the pension in place of which the lump sum is to be received.

(8) The amount of the lump sum—

(a)must be a multiple of £12, and

(b)must not, where an election is made under paragraph (1) to take a lump sum in place of part of a retirement pension by a person with a guaranteed minimum, be such that the total of—

(i)the annual rate of the person’s retirement pension when reduced in accordance with paragraph (10), and

(ii)any phased retirement pension paid to the person with that pension,

would be less than the guaranteed minimum.

(9) The amount of the lump sum, or where an election relates to more than one pension, the aggregate of the lump sums, must not exceed the person’s permitted maximum.

(10) Where an election is made under this regulation, the annual rate of the pension in respect of which the election is made is reduced by £1 for every £12 of lump sum received.

(11) Regulation 117 (person to be treated as electing to receive lump sum in place of pension) makes provision for a person to be treated as electing to receive a lump sum in place of a pension in certain circumstances.