PART 6PRIVATE PENSIONS

Other

49Pension Protection Fund: compensation cap to apply separately to certain benefits

1

Paragraph 26 of Schedule 6 to the 2005 Order (Pension Protection Fund: compensation cap) is amended as follows.

2

In sub-paragraph (1)(b), for “sub-paragraph (2)(a) or (b)” substitute “ sub-paragraph (2)(a), (b) or (c) ”.

3

In sub-paragraph (2)(a)(ii), for “paragraph (b)(i) does not apply” substitute “ neither of paragraphs (b) and (c) applies ”.

4

In sub-paragraph (2)(b)—

a

before paragraph (i) insert—

zi

benefit A is attributable to the person's pensionable service,

b

in paragraph (i), after “one or more other benefits” insert “ that are attributable to his pensionable service ”.

5

In sub-paragraph (2), after paragraph (b) insert

, and

c

this paragraph applies if—

i

benefit A is attributable to a pension credit from a transferor,

ii

at the same time as the person becomes entitled to relevant compensation in respect of benefit A he also becomes entitled to relevant compensation in respect of one or more other benefits that are—

iia

under the scheme or a connected occupational pension scheme, and

iib

attributable to a pension credit from the same transferor,(“benefit or benefits B”), and

iii

the aggregate of the annual values of benefit A and benefit or benefits B exceeds the compensation cap.

6

In sub-paragraph (5), after “sub-paragraph (2)(b)” insert “ or (c) ”.

7

The amendments made by this section are to be treated as always having had effect.

8

Regulations under paragraph 26(9) of Schedule 6 to the 2005 Order (modifications for cases where compensation becomes payable on different occasions) made in consequence of this section may be made with retrospective effect.