SCHEDULES

SCHEDULE 20PENSION PROTECTION FUND: INCREASED COMPENSATION CAP FOR LONG SERVICE

PART 2EFFECT OF CHANGE IN TRANSISTIONAL CASES

Recalculation of periodic compensation going forwards

8

1

This paragraph applies in relation to a person if—

a

the person is entitled to periodic compensation under paragraph 3, 11 or 15 of Schedule 6 to the 2005 Order,

b

the compensation is restricted in accordance with paragraph 26 of that Schedule (compensation cap), and

c

the person first became entitled to the compensation before the commencement date.

2

The protected pension rate for the person is to be recalculated as if the amendments made by Part 1 had always been in operation and the recalculated protected pension rate has effect for the person as from the commencement date.

3

For the purposes of that recalculation, paragraph 26A(7) of Schedule 6 to the 2005 Order (inserted by Part 1) has effect as if—

a

the references to an order made by the Department were references to the relevant old order, and

b

the reference to actuarial adjustment factors were a reference to the relevant old actuarial adjustment factors.

4

In this paragraph—

  • “the protected pension rate”—

    1. a

      for a person entitled to periodic compensation under paragraph 3 or 15 of Schedule 6 to the 2005 Order means the protected pension rate for the purposes of sub-paragraph (3)(a) of that paragraph;

    2. b

      for a person entitled to periodic compensation under paragraph 11 of that Schedule, means the protected notional pension for the purposes of sub-paragraph (3)(a) of that paragraph;

  • “the relevant old order” means the order in operation under paragraph 26(7) of Schedule 6 to the 2005 Order (as originally enacted) at the time when the person first became entitled to the periodic compensation;

  • “the relevant old actuarial adjustment factors” means the actuarial adjustment factors published by the Board under paragraph 26(7) of Schedule 6 to the 2005 Order (as originally enacted) at the time when the person first became entitled to the periodic compensation.

5

Nothing in this paragraph affects increases already accrued under paragraph 28 of Schedule 6 to the 2005 Order in relation to periods before the commencement date.