The Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005

Modification of Schedule 6 in relation to certain pensions in payment before the assessment date

12.—(1) Where immediately before the assessment date –

(a)a person is entitled to present payment of a pension under the scheme rules,

(b)the effect of disregarding rules within paragraph 35(2)(a) and (b) of Schedule 6 is that the person is not entitled to compensation under paragraph 3(2) of that Schedule by reason of the pension or a part of the pension, and

(c)regulation 9, 10 or 11 does not apply to that person,

Schedule 6 shall be modified in its application to that person as specified in paragraphs (2) and (3).

(2) Where a person to whom paragraph (1) applies has received a lump sum under the scheme rules, Schedule 6 shall apply to that person as if paragraph 19 (compensation payable as a lump sum) were omitted.

(3) Where a person to whom paragraph (1) applies has exercised an option to commute a portion of his pension for a lump sum under the scheme rules, Schedule 6 shall apply to that person as if –

(a)after paragraph 15(4) there were inserted –

“(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.

(4B) Sub-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.