- Latest available (Revised)
- Point in Time (24/07/2014)
- Original (As made)
Point in time view as at 24/07/2014.
There are currently no known outstanding effects for the The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014, Section 60.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
60.—(1) The Pension Protection Fund (Compensation) Regulations 2005 are amended as follows.
(2) After regulation 13 (manner of determining the revaluation percentage in the case of active members who have not attained normal pension age at assessment date)(1) insert—
13A.—(1) This regulation applies for the purposes of paragraph 12(3A)(b) of Schedule 7 to the Act (cases where it is unclear whether pensionable service is attributable to periods before 6th April 2009) in the case of active members who have not attained normal pension age at the assessment date.
(2) Where this regulation applies, in any case where it is unclear whether any particular pensionable service (either actual or notional) falls, or is to be treated for the purposes of the scheme as falling, on or after 6th April 2009, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 12(3)(b) of Schedule 7 to the Act as having occurred on or after 6th April 2009.”.
(3) After regulation 15 (manner of determining the higher revaluation percentage in the case of deferred members who have not attained normal pension age at assessment date)(2) insert—
15ZA.—(1) This regulation applies where it is unclear whether—
(a)pensionable service is attributable to periods before, or on or after 6th April 2009, in the case of deferred members and pension credit members who have not attained normal pension age or normal benefit age at the assessment date;
(b)any particular pensionable service (whether actual or notional) falls, or is to be treated as falling, for the purposes of the scheme, on or after 6th April 2009; or
(c)pension credit rights are to be treated for the purposes of the scheme as derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling or to be treated as falling on or after 6th April 2009.
(2) Where this regulation applies, the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of paragraph 17(3)(b) of Schedule 7 to the Act as having occurred on or after 6th April 2009.”.
(4) In regulation 15B (determination of the revaluation percentage in respect of certain periods)(3)—
(a)after paragraph (3) insert—
“(3A) Where this regulation applies and it is unclear whether any particular—
(a)pensionable service (whether actual or notional) is to be treated for the purposes of the scheme as service falling before 31st March 2011 (to be revalued in accordance with paragraph (2)), or service falling on or after that date (to be revalued in accordance with paragraph (3)); or
(b)pension credit rights are derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling before 31st March 2011, or from rights attributable to pensionable service falling on or after that date,
revaluation shall be determined in accordance with regulations 13 and 15 as modified by paragraphs (4) to (6).”;
(b)after paragraph (5) insert—
“(6) For the purposes of paragraph (3A) regulations 13 and 15 are modified as follows—
(a)each regulation becomes paragraph (1) of that regulation; and
(b)after paragraph (1) of each regulation, insert—
“(2) In any case where it is unclear whether—
(a)any particular pensionable service (whether actual or notional) is to be treated for the purposes of the scheme as service falling before 31st March 2011, or service falling on or after that date; or
(b)pension credit rights are derived from rights attributable to pensionable service of the transferor (whether actual or notional) falling before 31st March 2011, or from rights attributable to pensionable service falling on or after that date,
the Board may determine as best as it is able, having regard to the admissible rules and all the circumstances of the case, how much of the service or notional service concerned should be treated for the purposes of this regulation as having occurred before 31st March 2011 and how much on or after that date.”.”.
(5) In regulation 25 (cash balance schemes: modification of paragraphs 5, 15 and 19 of Schedule 7 to the Act)(4)—
(a)in the heading, for “paragraphs 5, 15 and 19” substitute “paragraphs 3, 5, 8, 10, 11, 14, 15, 19, 22 and 37”;
(b)in paragraph (1) omit the words after “cash balance scheme” to the end of the paragraph;
(c)for paragraph (2) substitute—
“(2) In their application to cash balance benefits or to a pension derived from cash balance benefits, the provisions of Schedule 7 to the Act have effect with the following modifications—
(a)paragraph 3 (pensions in payment at assessment date) has effect as if—
(i)in sub-paragraph (3), after “The annual rate of the periodic compensation is” there were inserted “subject to sub-paragraph (3A)”; and
(ii)after sub-paragraph (3) there were inserted—
“(3A) In a case where—
(a)the pension is derived from money purchase benefits or cash balance benefits;
(b)there is no requirement or discretion under the admissible rules to increase the pension; and
(c)the pension is not required to be increased in accordance with section 51 of the Pensions Act 1995,
the annual rate of the periodic compensation is the protected pension rate.”;
(iii)in sub-paragraph (5), for “sub-paragraph (3)” there were substituted “sub-paragraphs (3) and (3A)”.
(b)paragraph 5 (pension benefits postponed at assessment date) has effect as if—
(i)in sub-paragraph (3), after “The annual rate of the periodic compensation is” there were inserted “subject to sub-paragraphs (3A) and (3B)”;
(ii)after sub-paragraph (3) there were inserted—
“(3A) In a case where—
(a)the postponed pension is derived from money purchase benefits or cash balance benefits;
(b)there is no requirement or discretion under the admissible rules to increase the pension; and
(c)the pension is not required to be increased in accordance with section 51 of the Pensions Act 1995,
the annual rate of the periodic compensation is to be determined in accordance with sub-paragraph (3B).
(3B) In a case falling within sub-paragraph (3A) the annual rate of the periodic compensation is—
(a)where the commencement of periodic compensation under this paragraph has not been postponed for any period by virtue of paragraph 25A, 100% of the protected pension rate; or
(b)where the commencement of periodic compensation has been so postponed, 100% of the aggregate of the protected pension rate and the amount of the actuarial increase under paragraph 25A.”;
(iii)in sub-paragraph (4) for “In sub-paragraph (3)” there were substituted “In sub-paragraphs (3) and (3B)”;
(iv)after sub-paragraph (4) there were inserted—
“(4A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (4) what would have been the annual rate of the pension, the “protected pension rate” shall mean what the Board may, having regard to the admissible rules, determine would have been the annual rate of pension if the postponement of pension had ceased immediately before the assessment date.”; and
(v)in sub-paragraph (5) after “(4)” there were inserted “or (4A)”;
(c)paragraph 8 (active members over normal pension age at assessment date) has effect as if—
(i)for sub-paragraph (5) there were substituted—
“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules when the pensionable service relating to the pension ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”; and
(ii)sub-paragraphs (6) and (7) were omitted;
(d)paragraph 10 has effect as if—
(i)for sub-paragraph (4) there were substituted—
“(4) Subject to sub-paragraph (4A), the accrued amount means an amount equal to such amount of scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.
(4A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (4), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;
(ii)sub-paragraphs (5), (6) and (7) were omitted;
(e)paragraph 11 (active members who have not attained normal pension age at assessment date) has effect as if—
(i)for sub-paragraph (5) there were substituted—
“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such initial annual rate of pension to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the pension ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”; and
(ii)sub-paragraphs (6) and (7) were omitted;
(f)paragraph 14 has effect as if —
(i)for sub-paragraph (5) there were substituted—
“(5) Subject to sub-paragraph (5A), the accrued amount means an amount equal to such scheme lump sum to which the member would have been entitled under the admissible rules had the member attained normal pension age when the pensionable service relating to the scheme lump sum ended.
(5A) In any case where the Board is satisfied that it is not possible to identify the amount of the scheme lump sum on the basis referred to in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount in accordance with actuarial factors published by the Board.”;
(ii)sub-paragraphs (6) and (7) were omitted;
(g)paragraph 15 (deferred members who have not attained normal pension age at assessment date) has effect as if—
(i)at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”; and
(ii)after sub-paragraph (5) there were inserted—
“(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the initial annual rate of the pension, the accrued amount shall mean an amount equal to such initial annual rate as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.”;
(h)paragraph 19 has effect as if—
(i)at the beginning of sub-paragraph (5) there were inserted “Subject to sub-paragraph (5A)”; and
(ii)after sub-paragraph (5) there were inserted—
“(5A) In any case where the Board is satisfied that it is not possible to determine on the basis referred to in sub-paragraph (5) what would have been the amount of the scheme lump sum, the accrued amount shall mean an amount equal to such scheme lump sum amount as the Board may, having regard to the admissible rules and in accordance with actuarial factors published by the Board, determine the deferred member would have been entitled to had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.”;
(i)paragraph 22 (survivors who do not meet conditions for scheme benefits at assessment date) has effect as if—
(i)at the beginning of sub-paragraph (3)(a) there were inserted “subject to sub-paragraph (3A)”; and
(ii)after sub-paragraph (3) there were inserted——
“(3A) In any case where the Board is satisfied that it is not possible to identify the initial rate of pension mentioned in sub-paragraph (3)(a), the Board may, having regard to the admissible rules, determine the initial rate of the compensation in accordance with actuarial factors published by the Board.”;
(j)paragraph 37(1) has effect as if after “In this Schedule—” there were inserted—
““cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014;””; and
(d)after paragraph (2), insert—
“(3) In this regulation—
“cash balance benefit” has the meaning given by regulation 2 of the Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014; and
“cash balance scheme” means a scheme which provides cash balance benefits, whether or not the scheme also provides other benefits.”.
Commencement Information
I1Reg. 60 comes into force in accordance with reg. 1(1)
Regulation 13 was amended by S.I. 2011/554.
Regulation 15B was inserted by S.I 2011/554.
Regulation 25 was amended by S.I. 2010/560.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: