SCHEDULES

C1C6C5C7C2C4C8C9SCHEDULE 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

C9

Sch. 7 applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2

Pensions in payment at assessment date

I1C6C5C3C7C2C43

1

Compensation is payable in accordance with this paragraph where, immediately before the assessment date, a person is entitled to present payment of a pension under the admissible rules of the scheme.

2

That person (“the pensioner”) is entitled to periodic compensation in respect of that pension (“the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (8) applies, until such time as entitlement to the pension would have ceased under the admissible rules.

3

The annual rate of the periodic compensation is the appropriate percentage of the aggregate of—

a

the protected pension rate, and

b

any increases under paragraph 28 (annual increases in periodic compensation).

4

In sub-paragraph (3) “the appropriate percentage” means—

a

in a case to which sub-paragraph (7) applies, 90%, and

b

in any other case, 100%.

5

In sub-paragraph (3) “the protected pension rate” means the annual rate of the pension, under the admissible rules, immediately before the assessment date.

6

In determining for the purposes of sub-paragraph (5) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph F235(3A) applies F1to the scheme.

7

This sub-paragraph applies where the pensioner has not attained normal pension age in respect of the pension before the assessment date and his entitlement to the pension—

a

is attributable to his pensionable service, and

b

did not arise by virtue of any provision of the admissible rules of the scheme making special provision as to early payment of pension on grounds of ill health.

8

This sub-paragraph applies where the pension was not attributable—

a

to the pensioner’s pensionable service, or

b

(directly or indirectly) to a pension credit to which the pensioner became entitled under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (c. 30).

9

This paragraph does not apply if compensation is payable in respect of the pension in accordance with paragraph 5 (pension benefits postponed at assessment date).

10

This paragraph is subject to—

  • paragraph 26 (compensation cap), and

  • paragraph 30 (power of Secretary of State to change percentage rates by order).