15BVCommutation of certain pensions

15BV Commutation of certain pensions

15BV Commutation of certain pensions

(1) A person who became a contributor under section 15AO, 15AP, 15AQ or 15AR may—

(a) if he is entitled to receive a pension under section 15BF (3) or 15BG (3)—elect to be paid a lump sum in accordance with this section instead of the pension or part thereof, or

(b) if he is entitled to a pension under section 15BH (3) and had attained the age of 60 years on or before becoming so entitled—elect to be paid a lump sum in accordance with this section instead of the pension or part thereof.

(2) A lump sum payable pursuant to an election by a former contributor under subsection (1) (a) shall be calculated—

(a) where the former contributor is a man—in accordance with the following formula—

(b) where the former contributor is a woman—in accordance with the following formula—

where—

L represents the lump sum payable,

F represents the former contributor’s final average salary,

M represents the number of the former contributor’s accrued pension points that, subject to subsection (2A), the former contributor has elected to apply towards provision of the lump sum, and

N represents the number of the former contributor’s accrued pension points (if any) that may be applied towards provision of the lump sum in accordance with subsections (4) and (5).

(2A) The maximum number of accrued pension points that may be assigned as the value of M in the appropriate formula in subsection (2) shall be calculated—

(a) where the former contributor is a man—in accordance with the following formula—

(b) where the former contributor is a woman—in accordance with the following formula—