Welfare Reform and Pensions Act 1999

Adjustments to amount of pension credit

8 (1) If—

(a) a pension credit derives from an occupational pension scheme,

(b) the scheme is one to which section 56 of the [1995 c. 26.] Pensions Act 1995 (minimum funding requirement for funded salary related schemes) applies,

(c) the scheme is underfunded on the valuation day, and

(d) such circumstances as the Secretary of State may prescribe by regulations apply,

paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Secretary of State.

(2) Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Secretary of State.

(3) For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.

9 If—

(a) a person’s shareable rights under a pension arrangement have become subject to a pension debit, and

(b) the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,

this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Secretary of State.

10 The Secretary of State may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.