Lump sum meaning

This Checklist sets out actions that can be taken—some at procurement stage and others during the life of a project—to help minimise the chance of disputes emerging on construction projects... During the procurement process Select the right procurement route Ensure the procurement method fits the specific context. For instance, where the employer wants to maintain control of the design or specified materials, a traditional contract may suit better than design and build. Conversely, if an earlier start on site is essential, design and build might be the preferred choice. See Practice Note: Choosing the right procurement method—construction projects. Adopt the correct pricing structure Choose a pricing approach that aligns with the employer’s objectives. If price certainty is a priority, a lump sum contract is generally more suitable than a prime cost arrangement. Where a lump sum is used, avoid inserting an excessive number of provisional sums, as these can undermine the desired cost certainty. See Practice Notes:...

POWER CLAUSE / RULE HELD BY REQUIRES AGREEMENT OR CONSULTATION WITH SUBJECT TO Authority to amend; to wind the scheme up or delay winding-up; to cease future benefit accrual; to shut to new joiners; to readmit employees to membership of the scheme Discretion to set the employer contribution rate; to lower or suspend contributions; to apportion statutory debts Ability to enhance or vary benefits; to permit early retirement pensions and set actuarial reductions; to allow incapacity pensions, decide whether a member meets the incapacity definition, and reduce or pause such pensions; to grant pensions for serious ill-health; to apply actuarial uplifts for late retirement; to fix the rate at which pension is exchanged for a lump sum; to commute trivial pensions; to provide a bridging pension; to award discretionary increases to pensions; to make unauthorised payments Capacity to admit new employers or end their participation; to replace the principal employer; to transfer members’ benefits into or out of the scheme Authority to return...

Procedural Guide This Procedural Guide explains the process for making an application under the Civil Procedure Rules 1998 (CPR), in line with CPR 72 and CPR PD 72, together with the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, to enforce a liability owed to the debtor by a third party within the jurisdiction (formerly described as a garnishee order). It also provides direction on interim third party debt orders, duties of third parties, hardship payment orders, the evidence required and the range of orders the court may make and grant where appropriate. A third party debt order is an enforcement route enabling a creditor to recover sums, for example arrears of maintenance or a lump sum, from money payable and owed to the debtor by a third party within the jurisdiction. This encompasses funds held in the debtor’s name with a bank or building society. Whether a third party debt order is granted lies within the court’s discretion and will depend upon the circumstances prevailing at the time...

According to the FCA's figures, 41,500 individuals accessed their pensions for lump-sum withdrawals in the last financial year, up 14.6% from 36,200 a year earlier, the watchdog said. At the same time, the FCA noted a 13.6% slide in annuity sales, falling to 59,100 over the last financial year from 68,500 the year before, according to the regulator. The regulator also reported that transfers from defined benefit to defined contribution schemes decreased, dropping to 18,073 in the financial year ending March 2023 from 26,619 in the preceding year...

Original news Mr R (CAS-54306-K6B1) – 26 October 2024. Summary The Pensions Ombudsman dismissed a complaint concerning a scheme’s delay in crystallising pension benefits during a transfer, which the member argued caused higher-rate tax on future withdrawals and used more of his lifetime allowance than would otherwise have been necessary. Although the delay was held to be maladministration, responsibility for tax liabilities arising from subsequent crystallisation events did not fall on either the transferring or the receiving scheme. In addition, any loss he said he suffered was offset by growth in his fund over the period, which produced a larger tax-free lump sum and, in total, a lower tax bill. This decision is a reminder that a professional will not be accountable for every loss flowing from a breach of duty... What were the facts? ...

Uniform Building Contractors Ltd v The Water and Sewerage Authority of Trinidad and Tobago [2026] UKPC 2 What was the background? The Privy Council appeal arose from a 2007 design-and-build, lump sum contract governed by the 1999 FIDIC Yellow Book, concluded between the Water and Sewerage Authority of Trinidad and Tobago (WASA) and Uniform Building Contractors Ltd (UBC) for the design, supply and installation of pipelines. The works were structured as two discrete packages, each on a lump-sum basis. Executed on 23 May 2007, the agreement incorporated the Yellow Book, bespoke Conditions of Particular Application, the Employer’s Requirements, together with a Bill of Quantities (BoQ). Mr Barry Paul was appointed as the Engineer under the contract. During execution, disputes between the parties arose over performance. WASA served termination notices dated 28 May and 4 June 2009. UBC commenced proceedings in May 2013, shortly before the limitation period expired, and WASA advanced a counterclaim. At first instance, the court dismissed both UBC’s claim and WASA’s counterclaim in full. WASA...

What is the Pensions Advice Allowance? Following consultation in 2016/17, the government brought in, from 6 April 2017, the Pensions Advice Allowance. It enables eligible pension scheme members to withdraw a fixed sum from their pension pot tax-free to cover holistic retirement advice. At the member’s instruction, the scheme may therefore reduce the value of the member’s pot by the advice fee and pay the funds straight to the member’s adviser. This measure stemmed from the Financial Advice Market Review, which highlighted an advice gap affecting people who require retirement planning support but cannot meet the cost from net-of-tax income or savings. It is available in addition to other existing advice allowances and payment routes for advice. These include adviser charging, which does not permit pension monies to be used to fund holistic retirement advice. For further details, see Other types of pensions advice measures below. The government’s aim is to help those preparing for retirement to use the Pensions Advice Allowance to fund holistic...

THIS PRACTICE NOTE APPLIES TO MONEY PURCHASE ARRANGEMENTS FROM 6 APRIL 2015 From 6 April 2015, new pension flexibilities expanded the retirement choices for DC members and others with ‘flexible benefits’ (in essence, money purchase and/or cash balance entitlements). As part of those reforms, drawdown became more broadly accessible. For background on the changes implemented on 6 April 2015, see Practice Note: Pension freedoms—an introduction [Archived]. This Practice Note concentrates on the legal framework for drawdown arrangements set up on and after 6 April 2015. It also addresses how pre-April 2015 drawdown is treated from that date. For the rules governing drawdown before 6 April 2015, see Practice Note: Drawdown between 6 April 2011 and 5 April 2015 [Archived]. What is drawdown? The label ‘drawdown pension’ (often called ‘flexible income’) replaced ‘unsecured pension’ and ‘alternatively secured pension’ used up to 5 April 2011. Drawdown pension describes the method of paying benefits that allows members to set their own yearly income from a pension arrangement...

This Practice Note is archived and no longer updated or maintained. It outlines the differences introduced in the NEC4 standard form construction contracts when set against the NEC3 versions. It also summarises the changes from NEC3 across the standard forms. The spotlight is on the NEC4 Engineering and Construction Contract (ECC), though many ECC revisions mirror those rolled out across the broader NEC suite. Many of the points made in relation to the ECC are indicative of suite-wide adjustments. The NEC characterises NEC4 as an ‘evolution not revolution’, building on NEC3. The bulk of NEC4’s revisions appear aimed at embedding sound practice and/or cutting reliance on Z clauses (ie bespoke amendments). For further details on NEC contracts in general, including their structure, see Practice Note: NEC contracts—introduction. Publication of NEC4 The NEC4 contracts were issued by the Institution of Civil Engineers on 22 June 2017...

In the Employment Tribunals Case number: [ Insert case number ] Between: [ Insert name of claimant ] (Claimant) and [ Insert name of respondent ] (Respondent) Claimant's schedule of loss 1. Details Net basic pay per week (after deductions): £[ Insert amount ] Respondent’s yearly pension contributions/annual pension entitlement: [ [ Insert amount, e.g. £x ] OR [ Insert details of pension scheme, e.g. 1/80 final salary scheme with related lump sum ] ] Yearly value of bonus/other employment perks: £[ Insert amount ] Notice period under the contract: [ Insert period, e.g. x weeks or x months ] Claimant’s date of birth: [ Insert date ] Date employment ended: [ [ Insert date ] ] Age at termination: [ [ Insert age ] ] 2. ...

This precedent has been produced on the basis that the drafter is acting for the buyer. The following warranties have been prepared for a transaction where: The Buyer will provide pension benefits through its own arrangement or via an appointed provider; and Employees’ past service benefits will not be transferred to the Buyer’s arrangement. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 7 inclusive: Employee means [ [specify as necessary, either by category or by named individuals ]; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or...

Special Conditions: Amendments to the General Conditions of Contract of the Institution of Chemical Engineers (IChemE) Form of Contract—Lump Sum Contracts, the Red Book, fifth edition (2013) Special Conditions The General Conditions in the IChemE Red Book, fifth edition (2013) shall apply as altered below: Agreement Paragraph 8: remove ‘6.3’. Paragraph 14: after ‘fax number’ include: ‘or email address’. Add ‘Email Address’ to the contact details for both the Purchaser and the Contractor. Paragraph 16: delete the paragraph and replace with ‘Not used’. 1. Definitions, interpretation, waiver and Notices Sub-clause 1.1 Within the definition of Cost, insert ‘, reasonably and necessarily’ immediately after ‘properly’. Within the definition of Legislation, add at the end: (including Acts of Parliament and subordinate instruments; orders; rules and/or regulations made thereunder; and/or the rules; regulations and/or bye-laws made by any body of competent jurisdiction in respect of which the Contractor or Purchaser (as appropriate) has a legal obligation to comply,...

A Post-Employment Notice Pay (PENP) calculation It uses a set calculation that lets employers identify the taxable portion of a severance package on termination of employment when the basic salary actually paid falls short of what would have been earned had proper or full notice been worked. The method takes basic pay, multiplies it by the remaining notice days, then divides by the number of days in the relevant pay period, before deducting in full any amounts paid net of tax, except for holiday pay and termination bonuses. The requirement to perform a PENP calculation stems from reforms that took effect from 6 April 2018, making all such payments in lieu of notice chargeable to tax and national insurance...

For guidance on entitlement to statutory annual leave under the Working Time Regulations 1998 (SI 1998/1833), and on methods of calculation, refer to Practice Notes: Statutory paid holiday—the right and Statutory paid holiday—calculating holiday pay. For details on recourse where statutory sick pay (SSP) and contractual sick pay are not paid, see the ‘Remedies’ section of Practice Note: Sick pay...

Put simply, financial provision orders do not come into force until the decree is made absolute. This is set out expressly for lump sum and periodical payments orders in section 23(5) of the Matrimonial Causes Act 1973 (MCA 1973). As regards property transfer orders or settlements, the requirement appears in MCA 1973, s 24(3). See Practice Note: Implications of the death of a party...