6.—(1) The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011(1) are amended as follows.
(2) After Part 10 (early payment of periodic compensation), insert—
31A. A person who becomes entitled to periodic compensation under paragraph 4 or 6 (compensation payable to transferee) of Schedule 5 to the Act may elect to postpone the commencement of periodic compensation under that paragraph—
(a)in any of the circumstances prescribed in regulation 31B; and
(b)subject to all of the conditions prescribed in regulation 31C.
31B.—(1) The circumstances referred to in regulation 31A(a) are as follows.
(2) The first circumstance is where the person has not attained pension compensation age on the transfer day.
(3) The second circumstance is where, on the transfer day, the person—
(a)has attained pension compensation age; and
(b)is not in receipt of periodic compensation in respect of the pension compensation credit.
31C.—(1) The conditions referred to in regulation 31A(b) are as follows.
(2) The first condition is that the person on and from the transfer day is not and has not been in receipt of any periodic compensation or lump sum compensation payment in respect of the pension compensation credit.
(3) The second condition is that for each election to postpone, the person must have sent a written notice to the Board in accordance with paragraph (4) that they wish to postpone periodic compensation, before the person receives payment in respect of the pension compensation credit.
(4) The notice referred to in paragraph (3) must include—
(a)the person’s name, address, date of birth and national insurance number;
(b)the name of the scheme for which the Board has assumed responsibility; and
(c)the date on which the person would like the commencement of periodic compensation to cease to be postponed, which must be a date before the person attains the age of 75.
31D.—(1) Periodic compensation ceases to be postponed on the date elected in regulation 31C(4)(c) unless the person has further elected an earlier date or a later date (which must be a date before the person attains the age of 75).
(2) A person who wishes to make a further election under this regulation must send a written notice to the Board before the date notified (or most recently notified) under regulation 31C(4)(c).
(3) The notice referred to in paragraph (2) must include the information set out in regulation 31C(4).”.
(3) In the Schedule (information to be provided by the Board), in the table in paragraph 2, after the fifth row insert—
| “Any pension compensation credit member who makes a request in writing to the Board for it to postpone to a date specified in the request, commencement of the periodic compensation under paragraph 16A of Schedule 5 to the Act (postponement of compensation). | A forecast to the date specified in the request, determined in accordance with Schedule 5 to the Act, of the periodic compensation payable to the pension compensation credit member under that Schedule. | The period of 28 days beginning on the day on which the Board receives the request. |
| Any pension compensation credit member who has elected to postpone the commencement of the periodic compensation under paragraph 16A of Schedule 5 to the Act. | 1.A forecast to the date the periodic compensation ceases to be postponed, determined in accordance with Schedule 5 to the Act, of the periodic compensation payable to the pension compensation credit member under that Schedule. 2.Details of any options to commute which may be exercised by the pension compensation credit member in relation to the periodic compensation in accordance with paragraph 9 of Schedule 5 to the Act (commutation of periodic compensation) and forecasts to the date the periodic compensation ceases to be postponed, determined in accordance with that Schedule, of— (a)the lump sum to be paid to that member under any such options; and (b)the reduced level of annual compensation payments which that member would receive if they exercised any such option. | The period of 6 months beginning 12 months before the day on which the commencement of the periodic compensation ceases to be postponed.” |