The reduction of a sentence, as from death to life imprisonment.
The giving up of part or the entire pension that would be paid at retirement in exchange for a lump sum.
Applied to any exchange of a series of payments to which someone is entitled for a lump sum.
In the case of approved pension arrangements the amount that is commutable is strictly limited.
Time off for good behavoir more like!
So maybe: The reduction of a sentence, as from life imprisonment to parole,
would be more apt?
Thanks ajapale for the input.
I would imagine that the rules of the pension Scheme detail what should be provided as a lump sum benefit.
3/80 would be a common figure used in calculations. Previous figures would date back to changes in scheme accrual from October 1977, but the 25% looks like an attempt to mimic the 25% tax-free lump sum payable on personal pensions.
So really it would be necessary to look at the specific scheme rules.
One observation is that conversion terms look very generous!
Hi Azriel
Thanks for that. Yes it is the specific scheme rules.
Got the clarification I needed from the pension department after 3 attempts...
Much obliged for the assistance.