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 a defined period;
- 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.