15BUCElection to be paid lump sum instead of pension under sec 15BH

15BUC Election to be paid lump sum instead of pension under sec 15BH

15BUC Election to be paid lump sum instead of pension under sec 15BH

(1) A former contributor who is entitled to a pension under section 15BH (3) may, unless he also makes an election under section 15BV (1) (b), elect to be paid, instead of that pension or some part of that pension, a lump sum calculated, subject to subsections (2) and (3), in accordance with the following formula—

where—

L represents the lump sum payable,

C represents the former contributor’s notional final salary,

A represents such number of the former contributor’s accrued pension points as bears to the total number of those points the same proportion as the amount of pension instead of which a lump sum is to be paid bears to the amount of pension that would be payable under section 15BH (3) if no election had been made,

D represents—

(a) where the former contributor was qualified for full additional benefits—such number of his notional pension points as bears to the total number of those points the same proportion as is used in assigning a value to A,

(b) where the former contributor was qualified for partial, but not full, additional benefits—such number of his notional pension points as bears to one-half the total number of those points the same proportion as is used in assigning a value to A, or

(c) where the former contributor was not qualified for additional benefits—nil.

(2) Where a former contributor who became a contributor under section 15AO, 15AP or 15AR, or who became a contributor under section 15AQ but is not a former contributor referred to in subsection (3), elects under subsection (1) to be paid a lump sum instead of the whole of his pension, the board shall pay to the former contributor, instead of the benefits that, but for this section, would otherwise be payable, a lump sum equal to the greater of—

(a) the sum of—

(i) the amount calculated under subsection (1) in relation to the former contributor, and

(ii) the amount of any benefit that, but for this subsection, would be payable to the former contributor under section 15BH (2), and

(b) the sum of—