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The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011
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There are currently no known outstanding effects for the The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011, Section 34.
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Application of compensation cap where compensation becomes payable on different datesU.K.
34.—(1) This regulation applies where—
(a)the transferee becomes entitled to payment of compensation in accordance with paragraph 4 or 6 of Schedule 5 to the Act; and
(b)the transferee has previously become entitled to payment of compensation, in accordance with either of those paragraphs, which is derived from the rights of the same transferor under the same or a connected scheme.
(2) For the purposes of paragraph (1), a scheme is a connected scheme if the same person is or was the employer in relation to both schemes.
(3) Where this regulation applies, the amount of compensation payable to the transferee in accordance with paragraph 4 or 6 of Schedule 5 of the Act is to be restricted in accordance with paragraph (4) or (5).
(4) If the previous cap percentage is or exceeds 100, the compensation payable in respect of a subsequent tranche of compensation is nil.
(5) If the previous cap percentage is less than 100, the amount of compensation payable in respect of the previous and subsequent tranches of compensation is restricted in accordance with paragraph (8).
(6) “The previous cap percentage” is the cap percentage for the previous tranche of compensation.
(7) “The cap percentage” means (AAV x 100)/ACC, where AAV is the appropriate annual value of the previous or, as the case may be, a subsequent tranche of compensation at the time when each tranche first becomes payable and ACC is the appropriate compensation cap at that time.
(8) Where paragraph (5) applies—
(a)the amount of a subsequent tranche of compensation is restricted in accordance with regulation 33(3), but taking the reference to the cap fraction in that paragraph as a reference to the revised cap fraction; and
(b)the amount of the previous tranche of compensation is restricted to the revised cap fraction of the amount that would be payable apart from this sub-paragraph.
(9) “The revised cap fraction” means 100 / the aggregate cap percentage.
(10) “The aggregate cap percentage” means the aggregate of the cap percentages for the previous and subsequent tranches of compensation.
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