Pension commencement lump sum

A lump sum payment made on a crystallisation event subject to the following criteria:

• the member becomes entitled to it when they become entitled to a relevant pension;
• it is paid when all or part of the member’s lifetime allowance is available;
• it is paid within the period of three months beginning with the day on which the member becomes entitled to it;
• it is paid when the member has attained the normal minimum pension age (or ill health condition is satisfied);
• it is not an excluded lump sum.

Any payment not meeting these requirements will be treated as an unauthorised payment.

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