Modifications etc. (not altering text)
C1Sch. 5 applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c 19 - see S.I. 2014/1683, art. 2
4(1)Compensation is payable in accordance with this paragraph where the transferee attains pension compensation age before or on the transfer day.E+W+S
(2)The transferee is entitled to periodic compensation commencing on the transfer day and continuing for life.
(3)The annual rate of the periodic compensation is the aggregate of—
(a)the initial annual rate of compensation, F1...
[F2(aa)if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 16A, the amount of the actuarial increase under that paragraph, and]
(b)any increases under paragraph 17 (annual increases in periodic compensation).
(4)This paragraph is subject to [F3paragraph 16A (postponement of compensation) and] paragraph 18 (compensation cap).
Textual Amendments
F1Word in Sch. 5 para. 4(3)(a) omitted (13.3.2013) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 31(1)(a); S.I. 2013/585, art. 2(b)(iii)
F2Sch. 5 para. 4(3)(aa) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 31(1)(b); S.I. 2013/585, art. 2(b)(iii)
F3Words in Sch. 5 para. 4(4) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 31(2); S.I. 2013/585, art. 2(b)(iii)
5(1)This paragraph applies where —E+W+S
(a)the transferee dies after liability in respect of the pension compensation credit has been discharged under section 116,
(b)the transferee was before death entitled under paragraph 4 to periodic compensation commencing on the transfer day, and
(c)the transferee is survived by a widow, widower or surviving civil partner (“the surviving partner”).
(2)Subject to sub-paragraph (4), the surviving partner is entitled to periodic compensation commencing on the day following the transferee's death and continuing for life.
(3)The annual rate of the periodic compensation at any time is half of the annual rate of the periodic compensation (including [F4any actuarial increase under paragraph 16A and] any increases under paragraph 17) to which the transferee would at that time have been entitled under paragraph 4 had the transferee not died.
[F5(3A)If, on the day the transferee (“T”) died, commencement of T's periodic compensation under paragraph 4 was postponed by virtue of paragraph 16A, assume for the purposes of sub-paragraph (3) that the periodic compensation commenced immediately before the date of T's death.]
(4)The surviving partner is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.
Textual Amendments
F4Words in Sch. 5 para. 5(3) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 32(1)(a); S.I. 2013/585, art. 2(b)(iii)
F5Sch. 5 para. 5(3A) inserted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 32(1)(b); S.I. 2013/585, art. 2(b)(iii)
Commencement Information
I1Sch. 5 para. 5 wholly in force at 6.4.2011; para. 5 in force for certain purposes at Royal Assent see s. 149(2)(k); para. 5 in force so far as not already in force at 6.4.2011 by S.I. 2011/664, art. 2(3), Sch. Pt. 2