20Right to convert pension to lump sum entitlement

20 Right to convert pension to lump sum entitlement

20 Right to convert pension to lump sum entitlement

(1) In this section—

entitled to a pension means that a pension is payable by the trustees under this Part.

former member does not include a person who is entitled to a pension under section 22.

(2) Despite anything in this Act, except subsection (2A), the following former members may elect, by notice in writing served on the trustees, to convert the whole or part of the former members’ pension entitlements to lump sum entitlements determined in accordance with subsection (3)—

(a) a former member who is entitled to a pension under this Part but who is not a former member referred to in paragraph (b) or (c),

(b) a former member who becomes, on ceasing to be a person whose right to a pension is suspended under section 25 (2), entitled to a pension under this Part,

(c) a former member who is entitled to a pension as a result of a direction given by the trustees under section 26 (2).

(2A) Notwithstanding subsection (2), a former member referred to in subsection (2) (b) or (c) is not entitled to make an election under subsection (2) if he or she has in respect of any previous event had an opportunity to make an election under subsection (2) since he or she last ceased to be a member.

(2B) For the purposes of subsection (2A), where any event has occurred which entitled a former member to make an election under subsection (2) within the period of three months after the occurrence of that event, as referred to in subsection (11), that former member shall be deemed to have had, in respect of that event, an opportunity to make an election under subsection (2) if—

(a) his or her right to receive a pension under this Part was not suspended under section 25 (2) or section 26 (1) within the period of three months after the occurrence of that event, or

(b) having made an election under subsection (2) within the period of three months after the occurrence of that event, that election was not, by subsection (9), deemed never to have been made.

(3) A lump sum payment referred to in subsection (2) shall be the amount that is ten times the amount of the annual pension entitlement in respect of which the election is made.

(3A) For the purposes of subsection (2), the maximum amount of pension entitlement that may be the subject of an election under that subsection by a former member referred to in subsection (2) (c), is the lesser of the following amounts—