29

29 Commutation of existing members, &c., entitlements

(1)  A person who becomes entitled to a pension referred to in Subdivision 1 or 2 may, within 3 months after becoming so entitled, elect by notice in writing to the Commission to commute either 50% or 100% of that pension entitlement to a lump sum payment in accordance with this regulation.

(2)  If an election is made under subregulation (1) , the Commission must, out of the PS Fund, pay to the person who made the election or the legal personal representative of that person, as the case may require, a lump sum equal to the amount of the annual pension forgone by that person, multiplied by the conversion factor specified in Schedule 3 that is applicable to the person on the expiration of the period of 3 months referred to in subregulation (1) .

(3)  If a person elects to commute to a lump sum 50% or 100% of a pension entitlement in accordance with subregulation (1) , payment of that lump sum must be made within 14 days of the expiration of the period of 3 months referred to in subregulation (1) .

(4)  If a person is paid a lump sum under subregulation (2) , in respect of a pension entitlement referred to in Subdivision 1 or 2 , the pension to which that person or the surviving partner of that person is entitled is reduced by the percentage nominated in the election.

(5)  If a person elects, under subregulation (1) , to commute to a lump sum the whole of a pension entitlement referred to in Subdivision 1 , all entitlements under this Part in respect of that person and that person's surviving partner and children, if any, cease on payment of that lump sum being made in accordance with subregulation (2) .

(6)  If a person elects, under subregulation (1) , to commute to a lump sum the whole of a pension entitlement referred to in Subdivision 2 , all entitlements under this Part in respect of that person cease on payment of that lump sum being made in accordance with subregulation (2) .

(7)  In the application of this regulation for the purposes of regulation 22  –

(a) the election required under subregulation (1) is taken to have had effect on the death of the deceased member; and

(b) a conversion factor is to be applied in determining the lump sum; and

(c) the conversion factor is to be as specified in Schedule 3 by reference to the appropriate age; and

(d) the appropriate age is taken to be the age of the deceased member at the date of his or her death.