Offered lump sum by National Car Parks Pension Scheme

malverndavid

My 87 year old disabled father in law (who lives with us) has received a letter from a firm acting on behalf of the Trustees of the NCP Pensions Fund offering him the option to receive a lump sum of £15,528 instead of monthly income (which equates to £1,895 pa) from his NCP Pension. Can anyone offer advice as to whether the lump sum offer is a good one? He has been drawing the pension for many years.

Also the letter says that the offer is only open if he hasn't been a member of any other pension schemes. He was in the Army and receives an Army pension of approx £1000 per month, as well as the State Pension. Given this will he be able to take the lump sum if this turned out to be the best option?

Sorry if this question is repeating one asked many times before but he and we are at a loss as to whether its a good idea and whether he is able to take the lump sum.

Many thanks
David

Zelazny

State pension isn't a problem, but the army pension is too large to allow trivial commutation of his NCP pension.