A substitution, as of a less thing for a greater, esp. a substitution of one form of payment for another, or one payment for many, or a specific sum of money for conditional payments or allowances; as, commutation of tithes; commutation of fares; commutation of copyright; commutation of rations.
The option of exchanging pension for cash at retirement at a fixed rate.
This term refers to withdrawing a lump sum from a pension/annuity.
Payment of workers' compensation benefits in a monthly, quarterly, or single lump sum payment, rather than in weekly or biweekly payments.
The process by which an income stream or portion of an income stream is converted back to a lump sum. To 'commute' an allocated pension means to withdraw a lump sum.
The right you have under many private pension schemes to take part of your retirement benefits as a tax-free lump sum. How much this part is depends on the kind of scheme you're in, your age and sex and other factors.
a change from receiving monthly instalments for the rest of your life to receiving your pension money all at once, in one lump sum payment
a lump sum payment of future benefits
an injured worker's entitlement to workers compensation benefits paid out as a lump sum of money and is only available in specific circumstances
the conversion of all or part of an annuity or pension to a Lump Sum.
The giving up of a part or all of the pension payable from retirement for an immediate lump sum.
When you retire from the premium or classic plus schemes, you will be given the option to give up some pension in exchange for a tax-free lump sum. This is called 'commutation'. The commutation rate for normal retirement is 12:1 – this means that we will give you £12 of lump sum for every £1 a year of pension that you give up. In the classic scheme we give you a lump sum without you asking for it. You may choose to exchange this lump sum for more pension – this is called 'inverse commutation'. In this case, the Government Actuary will decide what the rate will be.
Changing from one kind of superannuation payment to another. For example, surrendering pension or annuity payments to receive a lump sum payment instead. (see also Immediate annuities, All other income streams)
See "Cash Sum at Retirement" ( more).
The process of converting an income stream such as a pension to a lump sum.
Pension given up at retirement in return for a tax free lump sum. A retirement benefit estimate will normally show the effect of this option.
is the action of changing from one kind of superannuation payment to another; e.g. surrendering pension or annuity payments to receive a lump sum payment instead, i.e. cashing in at “today’s value†a future income stream.
An order by a workers' compensation judge for a lump sum payment of part or all of your permanent disability award.
a lump sum payment made to a worker for future weekly benefits and medical expenses. It finalises a worker's claim for compensation and the amount must be determined between the insurer and the worker. For more information, see commutations.
The exchange of an income pension payment for a one-off capital sum.
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.
The process of converting all or part of your income stream to a lump sum.
This is giving up part or all of a pension in return for getting a one-off payment straightaway. It is also called a cash option.
A process provided under some annuities that allows the annuitant to take some or all of the value of undistributed annuity payments.
The transformation of a pension or annuity into a lump sum.