(1)  A pension or other benefit payable under this Part is to be reduced, at the time of payment by the Board, to the extent of the balance of the surchargeable contributions debt account of the relevant member but the pension or other benefit is not reduced for the purposes of regulation 12 .

(2)  For the purposes of subregulation (1) , where a person elects to commute all or part of his or her pension entitlement to a lump sum under this Part, that entitlement is to be reduced in accordance with the following formula, before any commutation to a lump sum:

where –

PR is the amount by which the pension is to be reduced;

SCDA is the balance of the surchargeable contributions debt account attributable to the pension at the time the surcharge liability is payable;

CF is the appropriate age, marital and gender factor specified for a pension in force under the Retirement Benefits Regulations 1994 .

(3)  A person who receives an assessment notice in respect of a pension payable under this Part may elect in writing to the Board to commute sufficient of his or her pension to a lump sum to discharge the balance of his or her surchargeable contributions debt account.

(4)  On receipt of an election under subregulation (3) , the Board must reduce the pension as provided by subregulation (2) and must pay the lump sum to that person to enable that person to discharge the balance of his or her surchargeable contributions debt account.