SCHEDULES

SCHEDULE 4PENSION COMPENSATION PAYABLE ON DISCHARGE OF PENSION COMPENSATION CREDIT

PART 3TRANSFEREE ATTAINS PENSION COMPENSATION AGE AFTER TRANSFER DAY

Revaluation

8

1

This paragraph applies for the purpose of calculating the revaluation amount mentioned in paragraph 6(3)(b).

2

In this paragraph “the revaluation period” means the period—

a

beginning with the transfer day, and

b

ending with the day before the transferee attains pension compensation age.

3

The revaluation amount is—

a

in a case in which the revaluation period is less than a month, nil;

b

in any other case, the revaluation percentage of the initial annual rate of compensation.

4

For the purposes of sub-paragraph (3)(b) “the revaluation percentage” means the lesser of—

a

the percentage increase referred to in paragraph 8(4)(a) of Schedule 5 to the Pensions Act 2008, and

b

the maximum revaluation rate.

5

For the purposes of sub-paragraph (4)(b) “the maximum revaluation rate” is—

a

in a case in which the revaluation period is a period of 12 months, 2.5%, and

b

in any other case, the percentage referred to in paragraph 8(5)(b) of Schedule 5 to the Pensions Act 2008.

This is subject to paragraph 20 (power of Board to alter rates of revaluation and indexation).