All or part of a member's 2006 scheme lump sum may be exchanged for additional annual pension payments. This option applies to an ordinary pension or a deferred pension (paid on normal health grounds) but not to an ill-health pension or to a deferred pension paid early on grounds of ill-health.

The annual pension amount calculated is payable to the member only. Survivors' pensions are not affected by the member's decision to exchange lump sum for additional annual pension payments.

The additional annual pension payments should be determined as follows:

Additional annual pension payments = Lump sum / Factor

Where:

Lump sum = the lump sum amount to be exchanged for additional annual pension payments.

Factor = factor from Table 504. The factors are unisex.