Commutation of pension – spouse
25A Commutation of pension – spouse
The spouse of a member, who is entitled to a pension under section 24(2) or (3), may, within 6 months after first becoming entitled to that pension, by notice in writing to the Commissioner, elect to convert all or part of the pension entitlement to a lump sum payment determined in accordance with subsection (2).
A lump sum payment under subsection (1) shall be equal to the higher amount resulting from the application of the following
2 formulas:
R x S x (10 –
)
R x 2.5 x D
where:
R is the proportion of pension to be commuted.
S is the annual amount of spouse's pension entitlement.
D is the value of the member's accumulation account at the time of his or her death.
Y is:
where the spouse has not attained the age of
66 years –
0; or
in any other case – the number of completed years between the age of the spouse at the time of electing for commutation and 65.
Nothing in this section shall be construed as depriving a spouse referred to in subsection (1) of the right to receive pension payments in respect of the period between first becoming entitled to a pension and the date of payment of the lump sum arising from the commutation elected for under that subsection.
The spouse of a former member, who is entitled to a pension under section 24(1), may, within 6 months after first becoming entitled to that pension, by notice in writing to the Commissioner, elect to convert all or part of the pension entitlement to a lump sum payment equal to the amount resulting from the application of the formula:
R x S (10 –
)
where:
R, S, and Y have the same meaning as in subsection (2).
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.