If an occupational pension scheme is wound up, a member’s entitlement to benefits may be commuted to a lump sum, which will be an approved member payment if the following conditions are satisfied:

the scheme is an occupational scheme (see ¶375-350);

the scheme is being wound up;

any employer of the member at the time of the payment who has made contributions in respect of that member under that scheme in the last five years is not making contributions under any other registered scheme in respect of the member, and undertakes not to make such contributions during the period of one year from the date of the payment of the lump sum (FA 2004, Sch. 29, para. 10(3));

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