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Pensions Act 2004
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Changes over time for: Paragraph 7
Version Superseded: 31/12/2023
Alternative versions:
- 06/04/2005- Amendment
- 13/03/2013- Amendment
- 11/02/2021
Point in time - 31/12/2023- Amendment
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Point in time view as at 11/02/2021.
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Pensions Act 2004, Paragraph 7 is up to date with all changes known to be in force on or before 13 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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This section has no associated Explanatory Notes
7(1)Compensation is payable in accordance with this paragraph where immediately before the assessment date—E+W+S
(a)a person is entitled to present payment of a lump sum under the admissible rules of the scheme (“the scheme lump sum”),
(b)payment of that lump sum is postponed, and
(c)he has attained normal pension age in relation to the lump sum.
(2)That person is entitled to compensation in the form of a lump sum of an amount equal to 100% of [F1the aggregate of—
(a)the amount of the scheme lump sum which would have been payable had the postponement ceased immediately before the assessment date, and
(b)if the payment of compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph.]
(3)The compensation is payable at the assessment date.
(4)Where the scheme lump sum is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.
(5)This paragraph does not apply in relation to a lump sum to which a person is entitled by reason of commuting any part of a pension under the scheme.
(6)This paragraph is subject to paragraph 30 (power of Secretary of State to change percentage rates by order).
Textual Amendments
F1Words in Sch. 7 para. 7(2) substituted (13.3.2013) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 23(2); S.I. 2013/585, art. 2(b)(ii)
Modifications etc. (not altering text)
C1Sch. 7 modified (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 15
C2Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 14(2)
C3Sch. 7 modified (6.4.2005) by The Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670), regs. 1(1), 12 (with reg. 23(3))
C4Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Hybrid Schemes) (Modification) Regulations 2005 (S.I. 2005/449), regs. 1(1), 3(2)-(4)
C5Sch. 7 applied (with modifications) (6.4.2005) by The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005 (S.I. 2005/652), regs. 1(1), 13(1)
Commencement Information
I1Sch. 7 para. 7 in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7
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