SCHEDULES

C1C5C4C6C2C3C7SCHEDULE 7Pension compensation provisions

Annotations:
Modifications etc. (not altering text)
C1

Sch. 7 amendment to earlier affecting provision S.I. 2005/652, reg. 14(2) (1.4.2005) by The Occupational Pension Schemes and Pension Protection Fund (Amendment) Regulations 2005 (S.I. 2005/993), regs. 1(1), 7

Deferred members who have not attained normal pension age at assessment date

17

I11

This paragraph applies for the purposes of paragraph 15(4)(c).

I12

The second revaluation period is the period which—

a

begins with the assessment date, and

b

ends with the day before the day on which the deferred member attains normal pension age in respect of the pension.

I13

The revaluation amount for the second revaluation period is—

a

where that period is less than one month, nil, and

F2b

in any other case, the aggregate of—

i

the higher revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling before the day on which section 101 of the Pensions Act 2008 comes into force (“the 2008 Act commencement day”), and

ii

the lower revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling on or after that day.

F13A

For the purposes of sub-paragraph (3)(b)—

a

any service within paragraph 36(4)(b) (notional pensionable service) is to be treated as falling on or after the 2008 Act commencement day if, or to the extent that, it is so treated for the purposes of the scheme;

b

regulations may make provision in relation to cases where it is unclear whether or not any particular pensionable service (either actual or notional) falls, or is to be treated as falling, on or after that day.

F34

In sub-paragraph (3)—

  • “the higher revaluation percentage” means the lesser of—

    1. a

      the percentage increase in the general level of prices in Great Britain during the revaluation period determined in the prescribed manner (“the inflation percentage”), and

    2. b

      the higher maximum revaluation rate;

  • “the lower revaluation percentage” means the lesser of—

    1. a

      the inflation percentage, and

    2. b

      the lower maximum revaluation rate;

  • “the relevant amount” means the aggregate of—

    1. a

      the accrued amount, and

    2. b

      the revaluation amount for the first revaluation period (see paragraph 16).

5

For the purposes of sub-paragraph (3)—

  • “the higher maximum revaluation rate”, in relation to the second revaluation period, is—

    1. a

      if that period is a period of 12 months, 5%, and

    2. b

      in any other case, the percentage that would be the inflation percentage had the general level of prices in Great Britain increased at the rate of 5% compound per annum during that period;

  • “the lower maximum revaluation rate”, in relation to the second revaluation period, is—

    1. a

      if that period is a period of 12 months, 2.5%, and

    2. b

      in any other case, the percentage that would be the inflation percentage had the general level of prices in Great Britain increased at the rate of 2.5% compound per annum during that period.

This is subject to paragraph 29 (power of Board to determine maximum revaluation rates etc).

I16

In this paragraph “the deferred member”, “the accrued amount” and “the pension” are to be construed in accordance with paragraph 15.