17.—(1) This paragraph provides for annual increases to compensation payable to the transferee.
(2) The transferee is entitled, on each indexation date, to an increase of the appropriate percentage of the underlying rate.
(3) The increase to which the transferee is entitled on the first indexation date is restricted to 1/12 of the amount calculated under sub-paragraph (2) for each full month in the period beginning with the transfer day and ending with that indexation date.
(4) For the purposes of sub-paragraph (2)—
“the appropriate percentage”, as at an indexation date, is the lesser of—
the percentage increase referred to in paragraph (a) of the definition of “the appropriate percentage” in paragraph 17(4) of Schedule 5 to the Pensions Act 2008, and
2.5%;
“the indexation date” means—
the 1st January next falling after the transferee first becomes entitled to the periodic compensation, and
each subsequent 1st January during the transferee’s lifetime;
“the underlying rate”, as at an indexation date, is the aggregate of—
the indexed proportion (as determined under sub-paragraph (5) or (6)) of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6) the revaluation amount, and
any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates.
(5) Where the transferor’s PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 6 to the 2005 Order (“the relevant paragraph of Schedule 6”), “the indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the relevant paragraph of Schedule 6 that is attributable to the transferor’s post-1997 service.
Paragraph 28(4) of that Schedule applies for the purpose of attributing amounts to the transferor’s post-1997 service under this sub-paragraph.
(6) Where the transferor’s PPF compensation is payable otherwise than as mentioned in sub-paragraph (5), “the indexed proportion” is such proportion as is determined in accordance with regulations made by the Department.
(7) Where the compensation payable to the transferee is—
(a)reduced as a result of the commutation of periodic compensation under paragraph 9, or
(b)restricted under regulations under paragraph 18 (compensation cap),
the references in the definition of “the underlying rate” in sub-paragraph (4) to the initial annual compensation rate and the revaluation amount are to that rate and that amount as so restricted or reduced.
(8) the definition of “the appropriate percentage” in sub-paragraph (4) is subject to paragraph 20 (power of Board to alter rates of revaluation and indexation).
(9) In this paragraph “post-1997 service” has the same meaning as in paragraph 28 of Schedule 6 to the 2005 Order (annual increase in periodic pension compensation).
18.—(1) The Department may by regulations make provision for restricting the amount of periodic compensation payable under this Schedule in a case in which, on the transfer day, the transferor is not entitled to present payment of PPF compensation.
(2) Without prejudice to the generality of sub-paragraph (1), the regulations may restrict an amount payable to a person in any period by reference to the compensation cap specified by the Department by order under paragraph 26(7) of Schedule 6 to the 2005 Order (compensation cap).
19.—(1) The Department may by regulations make provision for compensation to be payable to—
(a)prescribed descriptions of partners, or
(b)prescribed descriptions of dependants,
of prescribed descriptions of transferees.
(2) The regulations may, in particular—
(a)provide for compensation in the form of periodic or lump sum payments;
(b)provide for periodic compensation to be payable for a prescribed period;
(c)apply paragraph 17 (annual increases in respect of periodic compensation), with or without modifications, in respect of compensation in the form of periodic payments.
20.—(1) The Board may determine the percentage that is to be—
(a)the maximum revaluation rate for the purposes of paragraph 8(4)(b);
(b)the appropriate percentage for the purposes of paragraph 17(2).
(2) Before making a determination under this paragraph the Board must—
(a)consult such persons as it considers appropriate, and
(b)publish details of the proposed determination in such manner as it considers appropriate and consider any representations made in respect of it.
(3) The rate determined under this paragraph may be nil.
(4) A determination under this paragraph may be expressed so as to have effect for a limited period.
(5) A determination under sub-paragraph (1)(b)—
(a)has effect in relation to future increases under paragraph 17 only, and
(b)may be expressed to have effect—
(i)in all cases (whether the entitlement to the periodic compensation first arose before or after the date the determination is made), or
(ii)only in cases where entitlement to the periodic compensation first arose on or after a date determined by the Board.
(6) Notice of any determination under this paragraph must be published in such manner as the Board considers appropriate.