The Pension Protection Fund (Reviewable Ill Health Pensions) Regulations 2005

Effect of commutation where a person is treated as being a deferred memberE+W+S

This section has no associated Explanatory Memorandum

14.—(1) Where a person—

(a)opted to commute a portion of an ill health pension for a lump sum under the scheme rules applicable at the time of the award of that pension; and

(b)is treated as being a deferred member of the scheme immediately before the assessment date by virtue of paragraph 15A of Schedule 7 to the Act,

paragraph (2) shall apply.

(2) Where paragraph (1) applies, Schedule 7 shall apply as if—

(a)after paragraph 15(4) of Schedule 7 there were inserted—

[F1“(4A).]  Where the deferred member has exercised an option to commute a portion of a pension for a lump sum under the scheme rules, the protected pension rate shall be reduced by the percentage of the pension commuted for a lump sum under the scheme rules.

[F2(4B).]  [F2Sub-paragraph (4A)] shall not apply where the admissible rules provide, in whatever form, that the initial annual rate of the pension shall be reduced by reference to the amount of the pension commuted for a lump sum under the scheme rules”; and

(b)paragraph 24 (commutation of periodic compensation) were omitted.

Textual Amendments