21BCalculation of pensions following conversion to lump sum

#### 21B Calculation of pensions following conversion to lump sum 21B Calculation of pensions following conversion to lump sum > > (1) This section applies where the amount of pension payable to a person is to be reduced, under section 20 (4) or 21, because of an election under section 20 to convert part of a pension entitlement to a lump sum. > > > (2) The annual pension is to be reduced— > > > > > (a) in the case of a person who, immediately before the commencement of the [Parliamentary Contributory Superannuation (Amendment) Act 1989](/view/pdf/asmade/act-1989-159), was a member or in receipt of a pension under this Part—by the amount of annual pension in respect of which the election was made, or > > > > > (b) in any other case—by an amount calculated in accordance with the following formula— > > > > > > %20AND%20(No%3D053)%20AND%20(Year%3D1971)%20AND%20(%22Historical%20Document%22%3D0))/g2.gif) > > > where— > > > > > > R represents the amount of the reduction. > > > > > > C represents the amount of annual pension in respect of which the election concerned was made. > > > > > > E represents the annual pension entitlement immediately before the election concerned was made. > > > > > > F represents the amount that would be the current annual pension entitlement of the former member if he or she had not made the election concerned. > > > (3) In the event that any person— > > > > > (a) by becoming a member on a second or subsequent occasion, has become for a second or subsequent time entitled to a pension under this Part, and > > > > > (b) has made an election or elections under section 20, > > > > the person’s pension is to be reduced in accordance with subsection (2) in respect of the first and any subsequent election made. > > > (4) In the case of a person to whom subsection (3) applies who makes more than one election— > > > > > (a) successive reductions of pension are to be calculated using the formula given in subsection (2) (a), in the case of a member referred to in subsection (2) (a), or subsection (2) (b), in the case of a member referred to in subsection (2) (b), and > > > > > (b) for the purposes of any such calculation, the values to be assigned to the symbols E and F in that formula are to reflect any reduction of annual pension entitlement resulting from previous calculations. > > **s 21B:** Ins 1989 No 159, Sch 1 (3). Am 1993 No 111, Sch 7.