The Pension Protection Fund (Compensation) Regulations 2005

[^key-9c40ddc15e0c21147f24fa6b853e551a]: Words in reg. 4(3)(a) omitted (30.4.2013) by virtue of The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(5)(a)(i)

[^key-31e7b2441561fdb55addbc149f19421e]: Words in reg. 4(3)(a) substituted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(5)(a)(ii)

[^key-0c33262332830151719da0d8a567169c]: Reg. 4(3)(ba) inserted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(5)(b)

[^key-0c73b76052406957a2ddc13cb2ed8dbe]: Words in reg. 7(4) substituted (coming into force in accordance with reg. 1(2) of the amending S.I.) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(2), 3(6)(a)

[^key-d684e268e184252f2d7c0f95135211da]: Word in reg. 7(4) substituted (coming into force in accordance with reg. 1(2) of the amending S.I.) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(2), 3(6)(b)

[^key-5120266257b9f0fe3344f240eba01d5f]: Word in reg. 10(1)(b)(ii)(bb) inserted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(7)

[^key-5982ed95a6b621eed076d999af02f546]: Reg. 19(2)(b)(ii) substituted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(8)(a)

[^key-59daf7028abb6d3020873c9983dbd651]: Reg. 20(4) omitted (30.4.2013) by virtue of The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(9)

[^key-f254d8fa602320022d38c03f9f0b176f]: Words in reg. 22(1) substituted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(10)

[^key-40329d7586915e577c763a12857de5e2]: Reg. 2C(3) substituted (1.10.2013) by The Pension Protection Fund and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/1754), regs. 1, 2

[^key-c31ea69a1d940bb5d9b1cee2df43d1e1]: Words in reg. 1(2) substituted (E.W.) (13.3.2014) by The Marriage (Same Sex Couples) Act 2013 (Consequential Provisions) Order 2014 (S.I. 2014/107), art. 1(2), Sch. 1 para. 35; and (S) (16.12.2014) by The Marriage and Civil Partnership (Scotland) Act 2014 and Civil Partnership Act 2004 (Consequential Provisions and Modifications) Order 2014 (S.I. 2014/3229), art. 1(2), Sch. 6 para. 24

[^key-54d553d2e15a87c900a4c4a280e6a7dd]: Reg. 3 modified (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 59(c) (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

[^key-3d0a590deee0006b5334e5f3c4da4b2b]: Reg. 13A inserted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(2) (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

[^key-6e06cdc04c2c84932f090f8b003c47be]: Reg. 15ZA inserted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(3) (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

[^key-fd9fa20f5fa8d2a57b87a4f86eb89147]: Reg. 15B(3A) inserted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(4)(a) (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

[^key-75de40cdad6603276540cf261ce72ac3]: Reg. 15B(6) inserted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(4)(b) (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

[^key-c5fa6e54523238f1b0415194fa942412]: Words in reg. 25 substituted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(5)(a) (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

[^key-6847284e73c42bdc575c7e58afceacd1]: Words in reg. 25(1) omitted (24.7.2014) by virtue of The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(5)(b) (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

[^key-400fbfb55d3419b6cad3f72e9ea10a64]: Reg. 25(3) inserted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(5)(d) (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

[^key-8d2c7c07699144b4e7dcee7aa535afc1]: Reg. 25(2) substituted (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 60(5)(c) (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

[^key-df19eb837e6e214ace9ec993ec8b8aec]: Reg. 25A inserted (6.4.2016) by The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(6)

[^key-93ce891e2b87fc3d67ed7e0717e00c8a]: Words in reg. 1(2) substituted (6.4.2016) by The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(2)

[^key-3bbc06c40c0ee3bd04b86da393d515b8]: Reg. 2(2)(b) substituted (6.4.2016) by The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(3)

[^key-4786a00f8622382dccf585e4859595a8]: Reg. 19(3) omitted (6.4.2016) by virtue of The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(4)(b)

[^key-606ea5220d9c43e17dcb87743ad9d783]: Words in reg. 19(1) substituted (6.4.2016) by The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(4)(a)

[^key-47298eef42183da0116ab54c552ec0be]: Words in reg. 25(3) substituted (6.4.2016) by The Pension Protection Fund and Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/294), regs. 1, 4(5)

[^key-f51fe39310f8d858bde9313110163bbd]: Words in reg. 22(3) substituted (retrospective to 6.4.2005) by The Pension Protection Fund (Modification) (Amendment) Regulations 2017 (S.I. 2017/324), regs. 1(2), 2(2)

[^key-29a13d5efb82d72a175a32666c516125]: Words in reg. 22(3) substituted (retrospective to 6.4.2005) by The Pension Protection Fund (Modification) (Amendment) Regulations 2017 (S.I. 2017/324), regs. 1(2), 2(3)

[^key-d58a4c4ef7b9feab845792d6742f1cca]: Words in reg. 22(3) inserted (retrospective to 6.4.2005) by The Pension Protection Fund (Modification) (Amendment) Regulations 2017 (S.I. 2017/324), regs. 1(2), 2(4)

[^key-99abdc1e349b41e0d06375c37c541ca3]: Words in reg. 22(3) inserted (6.4.2017) by The Pension Protection Fund (Modification) (Amendment) Regulations 2017 (S.I. 2017/324), regs. 1(1), 2(5)

[^key-7fe02b2efd53461d88ea020bc1881e25]: Pt. 12 inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(6)

[^key-63cfc4d2bf02dd2ca4dd901c2f7867e2]: Words in reg. 1(2) inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(2)

[^key-286abbbf4cca12e66701da0913104de2]: Word in reg. 2(2)(a) omitted (24.2.2018) by virtue of The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(3)(a)

[^key-10b57f86f49486b6d728ab31c5f33acc]: Words in reg. 2(2)(c) inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(3)(b)

[^key-364f8c304366093734ff71fd75331731]: Reg. 2C(4A) inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(4)

[^key-7fc79a7c649439a114184462ce05ea02]: Reg. 4(4) inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(5)(b)

[^key-c1a009fede7a2c4ef20900f217c061d5]: Words in reg. 4(3) inserted (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations 2018 (S.I. 2018/95), regs. 1, 2(5)(a)

[^key-f59574f0f78f5d2c0bc2650fb0cee55e]: Pt. 13 inserted (retrospectively) by The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 (S.I. 2018/988), regs. 1(2)(b), 2(3) (as amended by Pension Schemes Act 2021 (c. 1), ss. 126(1), 131(1); S.I. 2021/620, reg. 2(2)(c))

[^key-b40d4bb3b7ca00dd243b9a85e2813eff]: Words in reg. 1(2) omitted (retrospectively) by virtue of The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 (S.I. 2018/988), regs. 1(2)(b), 2(2) (as amended by Pension Schemes Act 2021 (c. 1), ss. 126(1), 131(1); S.I. 2021/620, reg. 2(2)(c))

[^key-1047c8e505d91f63b93807208b670bc5]: Words in reg. 1(2) inserted (2.12.2019) by The Civil Partnership (Opposite-sex Couples) Regulations 2019 (S.I. 2019/1458), reg. 1(2), Sch. 3 para. 72

[^key-2fc6c37fce15c8789b643c919f818ac8]: Words in reg. 7(2)(b) omitted (6.4.2023) by virtue of The Occupational Pension Schemes (Pension Protection Fund (Compensation) and Fraud Compensation Payments) (Amendment) Regulations 2023 (S.I. 2023/265), regs. 1, 3

[^key-274827efe0f5a26309761053b12e0bcf]: Words in reg. 1(2) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 19(2)

[^key-e7e0a235130d2cb2b877ff0ee9bdc6e6]: Words in reg. 20(2)(c) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 19(3)

Manner of determining the higher revaluation percentage in the case of deferred members who have not attained normal pension age at assessment date

Modification of Schedule 7 for schemes with no revaluation

15A

• (1) Where, immediately before the assessment date, the admissible rules of the scheme do not provide for any revaluation of the benefits payable to or in respect of any member, Schedule 7 to the Act is modified in its application to that scheme in accordance with this regulation.

• (2) Paragraph 11 (active members who have not attained normal pension age at assessment date: periodic compensation) applies to that scheme as if for sub-paragraph (4), there were substituted—

(4) In sub-paragraph (3) “the protected notional pension” means the accrued amount.

• (3) Paragraph 14 (active members who have not attained normal pension age at assessment date: lump sum compensation) applies to that scheme as if—

• (a) for sub-paragraph (4), there were substituted—

(4) In sub-paragraph (3) “the protected amount” means the accrued amount.

; and

• (b) sub-paragraph (8) were omitted.

• (4) Paragraph 15 (deferred members who have not attained normal pension age at assessment date: periodic compensation) applies to that scheme as if for sub-paragraph (4), there were substituted—

(4) In sub-paragraph (3) “the protected pension rate” means the accrued amount.

• (5) Paragraph 19 (deferred members who have not attained normal pension age at assessment date: lump sum compensation) applies to that scheme as if—

• (a) for sub-paragraph (4), there were substituted—

(4) In sub-paragraph (3) “the protected amount” means the accrued amount.

; and

• (b) sub-paragraph (6) were omitted.

• (6) Schedule 7 applies to that scheme as if paragraphs 12, 16, 17 and 21(2)(b) and (f) were omitted.

PART11 — Career average revalued earnings schemes

Career average revalued earnings schemes: modification of paragraphs 8, 10, 11 and 14 of Schedule 7 to the Act

26

• (1) This regulation applies to a career average revalued earnings scheme, that is to say an occupational pension scheme where the whole of the pension entitlement is determined by reference to the member’s earnings in each year of pensionable service, and where those earnings, or a proportion of those earnings accrued as a pension, may be revalued each year until the member attains normal pension age or the pension is put into payment.

• (2) In their application to a career average revalued earnings scheme, paragraphs 8 and 11 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (5) substitute—

(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 in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount.

, and

• (b) omit sub-paragraphs (6) and (7).

• (3) In their application to a career average revalued earnings scheme, the provisions of paragraph 10 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (4) substitute—

(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 scheme lump sum in sub-paragraph (4), the Board may, having regard to the admissible rules, determine the accrued amount.

, and

• (b) omit sub-paragraphs (5) and (6).

• (4) In their application to a career average revalued earnings scheme, the provisions of paragraph 14 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (5) substitute—

(5) Subject to paragraph (5A), 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. (5A) In any case where the Board is satisfied that it is not possible to identify the amount of scheme lump sum in sub-paragraph (5), the Board may, having regard to the admissible rules, determine the accrued amount.

, and

• (b) omit sub-paragraphs (6) and (7).

Schemes where part of pension entitlement is determined on a career average revalued earnings basis: modification of paragraphs 8, 10, 11 and 14 of Schedule 7 to the Act

27

• (1) This regulation applies to an occupational pension scheme where part of the pension entitlement is determined on a career average revalued earnings basis, that is to say by reference to the member’s earnings in each year of pensionable service applicable to that part, and where those earnings, or a proportion of those earnings accrued as a pension, may be revalued each year until the member attains normal pension age or the pension is put into payment.

• (2) In their application to a scheme where part of the pension entitlement is determined on a career average revalued earnings basis, paragraphs 8 and 11 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (5) substitute—

(5) Subject to sub-paragraphs (6) and (7), the accrued amount is— - X + Y, where— X is an amount equal to such initial annual rate of that part of the pension which is determined on a career average revalued earnings basis 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 that part of the pension ended, or in any case where the Board is satisfied that it is not possible to identify the initial annual rate of pension, such amount as the Board may determine, having regard to the admissible rules, and Y is AR x PE x PS. (5A) In sub-paragraph (5)— - “AR” is the active member’s annual accrual rate, under the admissible rules, in respect of that part of the pension which is not determined on a career average revalued earnings basis, - “PE” is the active member’s annual pensionable earnings, under the admissible rules, in respect of that part of the pension which is not determined on a career average revalued earnings basis, and - “PS” is the active member’s pensionable service, under the admissible rules, in years (including any fraction of a year) in respect of that part of the pension which is not determined on a career average revalued earnings basis.

• (b) in sub-paragraph (6)—

• (i) for “the pension” substitute “that part of the pension which is not determined on a career average revalued earnings basis”,

• (ii) after “formula” insert “Y is AR x PE x PS”, and

• (iii) for “the accrued amount” substitute “Y”, and

• (c) in sub-paragraph (7)—

• (i) after “formula” insert “Y is AR x PE x PS”, and

• (ii) for “the accrued amount” substitute “Y”.

• (3) In their application to a scheme where part of the pension entitlement is determined on a career average revalued earnings basis, paragraph 10 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (4) substitute—

(4) Subject to sub-paragraphs (5) and (6), the accrued amount is— - X + Y, where— X is an amount equal to such amount of the scheme lump sum that relates to that part of the pension which is determined on a career average revalued earnings basis, 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 that scheme lump sum ended, or in any case where the Board is satisfied that it is not possible to identify the amount of scheme lump sum, such amount as the Board may determine, having regard to the admissible rules, and Y is AR x PE x PS. (4A) In sub-paragraph (4)— - “AR” is the active member’s annual accrual rate, under the admissible rules, in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis, - “PE” is the active member’s annual pensionable earnings, under the admissible rules, in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis, and - “PS” is the active member’s pensionable service, under the admissible rules, in years (including any fraction of a year) in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis.

• (b) in sub-paragraph (5)—

• (i) after “the scheme lump sum” insert “that relates to that part of the pension which is not determined on a career average revalued earnings basis”,

• (ii) after “formula” insert “Y is AR x PE x PS”, and

• (iii) for “the accrued amount” substitute “Y”, and

• (c) in sub-paragraph (6)—

• (i) after “formula” insert “Y is AR x PE x PS”, and

• (ii) for “the accrued amount” substitute “Y”.

• (4) In their application to a scheme where part of the pension entitlement is determined on a career average revalued earnings basis, paragraph 14 of Schedule 7 to the Act shall have effect with the following modifications—

• (a) for sub-paragraph (5) substitute—

(5) Subject to sub-paragraphs (6) and (7), the accrued amount is— - X + Y, where— X is an amount equal to such amount of scheme lump sum that relates to that part of the pension which is determined on a career average revalued earnings basis, 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 that scheme lump sum ended, or in any case where the Board is satisfied that it is not possible to identify the amount of scheme lump sum, such amount as the Board may determine, having regard to the admissible rules, and Y is AR x PE x PS. (5A) In sub-paragraph (5)— - “AR” is the active member’s annual accrual rate, under the admissible rules, in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis, - “PE” is the active member’s annual pensionable earnings, under the admissible rules, in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis, and - “PS” is the active member’s pensionable service under the admissible rules, in years (including any fraction of a year) in respect of the scheme lump sum that relates to that part of the pension which is not determined on a career average revalued earnings basis.

• (b) in sub-paragraph (6)—

• (i) after “the scheme lump sum” insert “that relates to that part of the pension which is not determined on a career average revalued earnings basis”,

• (ii) after “formula” insert “Y is AR x PE x PS”, and

• (iii) for “the accrued amount” substitute “Y”, and

• (c) in sub-paragraph (7)—

• (i) after “formula” insert “Y is AR x PE x PS”, and

• (ii) for “the accrued amount” substitute “Y”.

12A

In this Part, where the Secretary of State makes a decision about the manner in which the general level of prices in Great Britain is to be determined, the Secretary of State shall publish that decision.

Determination of the revaluation percentage in respect of certain periods

15B

• (1) This regulation applies where any revaluation period referred to in regulations 13 and 15 includes a period which falls before 31st March 2011.

• (2) Where this regulation applies, revaluation in respect of the period which falls before 31st March 2011 shall be determined in accordance with regulations 13 and 15 as modified by paragraph (4).

• (3) Where this regulation applies, revaluation in respect of the period which begins on 31st March 2011 shall be determined in accordance with regulations 13 and 15 as modified by paragraph (5).

• (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).

• (4) For the purposes of paragraph (2)—

• (a) regulation 13 is modified as follows—

• (i) omit the words “Subject to regulation 15B,”; and

• (ii) for paragraphs (a) and (b) substitute—

(a) A is the level of the retail prices index for January 2011; and (b) B is the level of the retail prices index for the month which falls two months before the month during which the assessment date falls.

; and

• (b) regulation 15 is modified as follows—

• (i) omit the words “Subject to regulation 15B,”; and

• (ii) for paragraphs (a) and (b) substitute—

(a) A is the level of the retail prices index for January 2011; and (b) B is the level of the retail prices index for the month which falls two months before the month during which the assessment date falls.

• (5) For the purposes of paragraph (3)—

• (a) regulation 13 is modified as follows—

• (i) omit the words “Subject to regulation 15B,”; and

• (ii) for paragraph (b) substitute—

(b) B is the level of the general level of prices in Great Britain for January 2011 determined in such manner as the Secretary of State may from time to time decide.

; and

• (b) regulation 15 is modified as follows—

• (i) omit the words “Subject to regulation 15B,”; and

• (ii) for paragraph (b) substitute—

(b) B is the level of the general level of prices in Great Britain for January 2011 determined in such manner as the Secretary of State may from time to time decide.

• (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.

PART2A — Postponement of compensation

Postponing compensation

2A

• (1) A person who becomes entitled to periodic compensation under paragraph 5, 8, 11 or 15 of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule, may elect to postpone the commencement of periodic compensation under that paragraph—

• (a) in any of the circumstances prescribed in regulation 2B; and

• (b) subject to all of the conditions prescribed in regulation 2C.

• (2) A person who becomes entitled to lump sum compensation under paragraph 7, 10, 14 or 19 of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule, may elect to postpone the payment of lump sum compensation under that paragraph—

• (a) in any of the circumstances prescribed in regulation 2B; and

• (b) subject to all of the conditions prescribed in regulation 2C.

Circumstances in which periodic and lump sum compensation can be postponed

2B

• (1) The circumstances referred to in regulation 2A(1)(a) and (2)(a) are as follows.

• (2) The first circumstance is where the person has—

• (a) not attained normal pension age; or

• (b) not attained normal benefit age,

on the date when an assessment period begins in relation to the scheme.

• (3) The second circumstance is where the person—

• (a) has not received any pension (including any lump sum entitlement) under the scheme;

• (b) is an active member; and

• (c) has attained normal pension age,

on the date when an assessment period begins in relation to the scheme.

• (4) The third circumstance is where the person—

• (a) has had their pension payment postponed; and

• (b) payment of the pension remains postponed

on the date of the transfer notice issued under section 160 of the Act to trustees and managers of the scheme.

Conditions subject to which periodic and lump sum compensation can be postponed

2C

• (1) The conditions referred to in regulation 2A(1)(b) and (2)(b) are as follows.

• (2) The first condition is that—

• (a) where the person elects to postpone periodic compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any lump sum compensation to which they are entitled in respect of that scheme; or

• (b) where the person elects to postpone lump sum compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any periodic compensation to which they are entitled in respect of that scheme.

• (3) The second condition is that the person must not have received or be receiving—

• (a) their pension (including any lump sum entitlement) under the scheme;

• (b) any periodic compensation in respect of their rights under the scheme; or

• (c) any lump sum compensation in respect of their rights under the scheme.

• (4) The third condition is that for each election to postpone periodic compensation or lump sum compensation, the person has sent written notice to the Board—

• (a) in accordance with paragraph (5);

• (b) that the person wishes to postpone the commencement of periodic compensation or payment of lump sum compensation; and

• (c) before the commencement of that periodic compensation or payment of lump sum compensation.

• (4A) The fourth condition is that where regulation 29 (variable-rate schemes which provide for a decrease in annual rate of pension: modification of Schedule 7 to the Act) applies to the scheme and the person elects to postpone any periodic compensation in respect of a pension which falls within regulation 28(1)(b), the person must—

• (a) elect to postpone both the compensation in respect of the basic element and that in respect of the bridging element; and

• (b) specify the same date in relation to both for the purposes of paragraph (5)(c).

• (5) The notice referred to in paragraph (4) 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 or payment of lump sum compensation to cease to be postponed, which must be a date before the person attains the age of 75.

Date on which postponement ceases

2D

• (1) Periodic compensation and lump sum compensation ceases to be postponed on the date elected under regulation 2C(5)(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 2C(5)(c).

• (3) The notice referred to in paragraph (2) must include the information set out in regulation 2C(5).

Active members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009

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 whetherany 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.

Manner of determining the revaluation amount

Manner of determining the higher revaluation percentage in the case of deferred members who have not attained normal pension age at assessment date

Deferred members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009

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.

Modification of Schedule 7 for schemes with no revaluation

Determination of the revaluation percentage in respect of certain periods

Cash balance schemes: modification of Schedule 7 to the Act

25A

• (1) In its application to a cash balance scheme, paragraph 37 of Schedule 7 to the Act (other definitions) applies as if, after sub-paragraph (4) there were inserted—

(5) In this Schedule references to a lump sum to which a person is entitled, or which a person has been paid, by reason of commuting part of a pension under the scheme include any lump sum to which the person is entitled, or which the person has been paid, by reason of opting to receive a lump sum instead of a pension, or part of a pension, in respect of cash balance benefits under the scheme.

• (2) In its application to a cash balance scheme other than a scheme to which regulation 25 applies, paragraph 37(1) of Schedule 7 to the Act applies as if, before the definition of “deferred member” 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;

Part 12 — Variable-rate schemes

Variable-rate schemes which provide for a decrease in annual rate of pension: modification of Schedule 7 to the Act

28

• (1) Regulation 29 applies to a scheme if—

• (a) an assessment period in relation to the scheme begins on or after 24th February 2018; and

• (b) under the admissible rules of the scheme, immediately before the assessment date a person (“the member”) is entitled, or has accrued rights or pension credit rights, to a pension (“the step-down pension”), the annual rate of which would (had no assessment period begun in relation to the scheme and the rules remained unchanged) have decreased on a date (“the scheme decrease date”) that falls on or after that assessment date.

• (2) In this regulation and in regulation 29, in relation to the step-down pension—

• (a) subject to paragraph (3)—

• “the basic element” means the portion of the annual rate of the step-down pension to which the member was, or would have been, entitled for life under the admissible rules of the scheme; and

• “the bridging element” means the portion of the annual rate of the step-down pension to which the member was, or would have been, entitled only until the scheme decrease date under the admissible rules of the scheme; and

• (b) “the PPF bridging end date” means—

• (i) in a case to which paragraph (4) applies, the date determined in accordance with that paragraph;

• (ii) in a case to which paragraph (5) applies, the date determined by the Board in accordance with that paragraph; and

• (iii) in any other case, the day before the scheme decrease date.

• (3) In any case where the Board is satisfied that it is not possible to identify the portions of the annual rate of the step-down pension which constitute the basic element and the bridging element, the Board may, having regard to the admissible rules of the scheme, treat the basic element and the bridging element as meaning such respective portions of the annual rate of the step-down pension as it considers appropriate.

• (4) In any case where—

• (a) the scheme decrease date would, under the admissible rules of the scheme, have been determined by reference to an enactment as in force at a particular time; and

• (b) that time falls after the assessment date,

the PPF bridging end date is the day before what would have been the scheme decrease date, if it were determined by reference to the enactment as in force on the assessment date.

• (5) In any case where the Board is satisfied that it is not possible to identify the scheme decrease date, the Board may, having regard to the admissible rules of the scheme, determine the PPF bridging end date in such manner as it considers appropriate.

29

• (1) In this regulation—

• (a) “the member” and “the step-down pension” have the same meanings as in regulation 28; and

• (b) references to “Schedule 7” are to Schedule 7 to the Act.

• (2) Schedule 7 has effect with the following modifications in relation to a scheme to which this regulation applies.

• (3) Schedule 7 (apart from paragraph 33) and any regulations made under it (apart from regulation 28 and this regulation) have effect as if the basic element and the bridging element of the step-down pension were separate pensions.

• (4) Where compensation is payable under paragraph 3 of Schedule 7 (pensions in payment at assessment date) in respect of the step-down pension, sub-paragraph (2) of that paragraph has effect in its application to the bridging element as if for the words from “for life” to the end there were substituted—

until the earliest of— (a) the date of the pensioner’s death; (b) the PPF bridging end date; and (c) in a case to which sub-paragraph (8) applies, the date on which entitlement to the pension would have ceased under the admissible rules

• (5) Where compensation is payable under paragraph 5 of Schedule 7 (pension benefits postponed at assessment date) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) at the beginning there were inserted “Subject to sub-paragraph (2A),”; and

• (ii) for the words from “for life” to the end there were substituted—

until the earliest of— (a) the date of the postponed pensioner’s death; (b) the PPF bridging end date; and (c) in a case to which sub-paragraph (7) applies, the date on which entitlement to the pension would have ceased under the admissible rules

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if, on the PPF bridging end date— (a) the commencement of periodic compensation in respect of the pension has been postponed by virtue of paragraph 25A; and (b) that postponement has not ceased.

; and

• (c) in sub-paragraph (3)—

• (i) at the end of paragraph (a) there were inserted “and”; and

• (ii) paragraph (aa) were omitted.

• (6) Where compensation is payable under paragraph 8 (active members over normal pension age at assessment date), 11 (active members who have not attained normal pension age at assessment date) or 15 (deferred members who have not attained normal pension age at assessment date) of Schedule 7 in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) at the beginning there were inserted “Subject to sub-paragraph (2A),”; and

• (ii) for “for life” there were substituted “until the earlier of the date of his death and the PPF bridging end date”;

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if, on the PPF bridging end date— (a) the commencement of periodic compensation in respect of the pension has been postponed by virtue of paragraph 25A; and (b) that postponement has not ceased.

; and

• (c) in sub-paragraph (3)—

• (i) at the end of paragraph (a) there were inserted “and”; and

• (ii) paragraph (aa) were omitted.

• (7) Where the commencement of compensation under paragraph 5, 8, 11 or 15 of Schedule 7 in respect of the bridging element of the step-down pension is postponed by virtue of paragraph 25A of that Schedule (postponement of compensation), paragraph 25A has effect in relation to that compensation as if sub-paragraphs (2) and (3) were omitted.

• (8) Where the annual value of the bridging element of the step-down pension falls to be determined under paragraph 26(6) of Schedule 7 (compensation cap) for the purpose of determining the periodic compensation payable to the member, or to another person in respect of the member, paragraph 26 has effect as if—

• (a) in sub-paragraph (6)—

• (i) at the end of each of paragraphs (a), (b), (d) and (f); and

• (ii) in paragraph (c)(i), after “paragraph 3(3)(a)”,

there were inserted “,actuarially reduced in accordance with sub-paragraph (8A)”; and

• (b) after sub-paragraph (8) there were inserted—

(8A) The Board must determine the amount of the actuarial reduction to be applied under sub-paragraph (6) having regard to the length of the period beginning with the date on which entitlement to compensation in respect of the benefit commences and ending with the PPF bridging end date.

• (9) Where compensation is payable under paragraph 4 of Schedule 7 (pensions in payment at assessment date – compensation for survivors) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if in sub-paragraph (2) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the PPF bridging end date”.

• (10) Where compensation is payable under paragraph 6 of Schedule 7 (pension benefits postponed at assessment date – compensation for survivors) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) for “sub-paragraph (4)” there were substituted “sub-paragraphs (2A) and (4)”; and

• (ii) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the PPF bridging end date”;

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if the postponed pensioner dies on or after the PPF bridging end date.

; and

• (c) in sub-paragraph (3) “any actuarial increase under paragraph 25A and” were omitted.

• (11) Where compensation is payable under paragraph 9 of Schedule 7 (active members over normal pension age at assessment date – compensation for survivors) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) for “sub-paragraph (4)” there were substituted “sub-paragraphs (2A) and (4)”; and

• (ii) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the PPF bridging end date”;

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if the active member dies on or after the PPF bridging end date.

; and

• (c) in sub-paragraph (3) “any actuarial increase under paragraph 25A and” were omitted.

• (12) Where the member dies after attaining normal pension age and compensation is payable under paragraph 13 of Schedule 7 (active members who have not attained normal pension age at assessment date – compensation for survivors) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) for “sub-paragraph (4)” there were substituted “sub-paragraphs (2A) and (4)”; and

• (ii) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the PPF bridging end date”;

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if the active member dies on or after the PPF bridging end date.

; and

• (c) in sub-paragraph (3)(a) “any actuarial increase under paragraph 25A and” were omitted.

• (13) Where the member dies after attaining normal pension age and compensation is payable under paragraph 18 of Schedule 7 (deferred members who have not attained normal pension age at assessment date – compensation for survivors) in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (a) in sub-paragraph (2)—

• (i) for “sub-paragraph (4)” there were substituted “sub-paragraphs (2A) and (4)”; and

• (ii) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the PPF bridging end date”;

• (b) after sub-paragraph (2) there were inserted—

(2A) No compensation is payable under this paragraph in respect of the pension if the deferred member dies on or after the PPF bridging end date.

; and

• (c) in sub-paragraph (3)(a) “any actuarial increase under paragraph 25A and” were omitted.

• (14) Where the member dies before attaining normal pension age—

• (a) if compensation is payable under paragraph 13 of Schedule 7 in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (i) in sub-paragraph (2) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the date specified in sub‑paragraph (2A)”; and

• (ii) after sub-paragraph (2) there were inserted—

(2A) The date specified for the purposes of sub-paragraph (2) is— (a) where, by virtue of paragraph 25 (early payment of compensation), the active member became entitled to compensation under paragraph 11 in respect of the pension before the date of the active member’s death, the PPF bridging end date; and (b) in any other case, the last day of the period which begins with the day following the active member’s death and is equal in length to the period— (i) beginning with the day on which the active member would have attained normal pension age; and (ii) ending with the PPF bridging end date.

; and

• (b) if compensation is payable under paragraph 18 of Schedule 7 in respect of the step-down pension, that paragraph has effect in its application to the bridging element as if—

• (i) in sub-paragraph (2) for “for life” there were substituted “until the earlier of the date of the widow’s or widower’s death and the date specified in sub‑paragraph (2A)”; and

• (ii) after sub-paragraph (2) there were inserted—

(2A) The date specified for the purposes of sub-paragraph (2) is— (a) where, by virtue of paragraph 25 (early payment of compensation), the deferred member became entitled to compensation under paragraph 15 in respect of the pension before the date of the deferred member’s death, the PPF bridging end date; and (b) in any other case, the last day of the period which begins with the day following the deferred member’s death and is equal in length to the period— (i) beginning with the day on which the deferred member would have attained normal pension age; and (ii) ending with the PPF bridging end date.

• (15) Paragraph 37(1) of Schedule 7 (other definitions) has effect as if after the definition of “pension credit rights” there were inserted—

• “the PPF bridging end date” has the meaning given by regulation 28(2)(b) of the Pension Protection Fund (Compensation) Regulations 2005 (variable-rate schemes which provide for a decrease in annual rate of pension: modification of Schedule 7 to the Act);