The Railways Pension Scheme Order 1994

Additional Lump Sum

8C  A Member who is about to become a pensioner may, by notice in writing to the Trustee, elect to commute a proportion of his pension for an additional lump sum but may not commute so much of his pension as would make the pension remaining but for Rule 12B (GMP Increase) and Rule 12C (State Graduated Retirement Benefits) less than 75% of the Normal Pension.

Commutation shall be on the basis that £1 per annum of pension is equivalent to a lump sum of £12.

An election under this Rule 8C (Additional Lump Sum) shall not affect the pension payable after death to a Member’s spouse, dependants or children.

A person may not commute so much pension as would provide an additional lump sum which, when added to the lump sum payable on retirement under rule 14 of the BR Rules, produces a total which exceeds:

(i) 3/80ths of Pay on the earlier of the date the Member left employment with the Participating Employer and the date the Member attained age 65

multiplied by

(ii) the number of years of the Member’s employment with the Participating Employer (excluding any years after the attainment of State Pension Age an d subject to a maximum of 40)

multiplied by

(iii) the Normal Pension on the date the pension becomes payable

and divided by

(iv) the Basic Pension

or such greater sum as is agreed with the Inland Revenue.

A person may not commute so much pension as would make the pension remaining but for Rule 12B (GMP Increase) and Rule 12C (State Graduated Retirement Benefits) less than the aggregate of:

(i) the State Graduated Retirement Benefit; and

(ii) whichever is the lesser on the date the pension becomes payable of the Contracted–out Pension and the Forecast GMP.

A Member cannot make an election under this Rule 8C (Additional Lump Sum) if he has made an election under Rule 8B (Additional Pension).