SCHEDULES

C1SCHEDULE 5Pension compensation payable on discharge of pension compensation credit

Annotations:
Modifications etc. (not altering text)
C1

Sch. 5 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

Part 3Transferee attains pension compensation age after transfer day

Revaluation

I18

1

This paragraph applies for the purpose of calculating the revaluation amount mentioned in paragraph 6(3)(b).

2

In this paragraph, “the revaluation period” means the period—

a

beginning with the transfer day, and

b

ending with the day before the transferee attains pension compensation age.

3

The revaluation amount is—

a

in a case in which the revaluation period is less than a month, nil;

b

in any other case, the revaluation percentage of the initial annual rate of compensation.

4

For the purposes of sub-paragraph (3)(b) “the revaluation percentage” means the lesser of—

a

the percentage increase in the general level of prices in Great Britain during the revaluation period, determined in the prescribed manner, and

b

the maximum revaluation rate.

5

For the purposes of sub-paragraph (4)(b) “the maximum revaluation rate” is—

a

in a case in which the revaluation period is a period of 12 months, 2.5%, and

b

in any other case, the percentage that would be the percentage mentioned in sub-paragraph (4)(a) 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 20 (power of Board to alter rates of revaluation and indexation).