Commentary on Sections Summary Commutation of periodic compensation
592.Paragraph 24 provides that a person can commute part of his pension compensation as a lump sum but cannot commute more that 25% (this percentage may be changed by the Secretary of State). The amount paid as a lump sum will be 25% of the pension compensation payable after reductions are made to take account of the compensation cap. The lump sum payable will be the actuarial equivalent of the commuted portion of the pension compensation calculated from tables designated for this purpose by the Board. Regulation may set out the manner in which the option to commute may be exercised.