49.—(1) Paragraph 26 of Schedule 6 to the 2005 Order (Pension Protection Fund: compensation cap) is amended as follows.
(2) In sub-paragraph (1)(b), for “sub-paragraph (2)(a) or (b)” substitute “sub-paragraph (2)(a), (b) or (c)”.
(3) In sub-paragraph (2)(a)(ii), for “paragraph (b)(i) does not apply” substitute “neither of paragraphs (b) and (c) applies”.
(4) In sub-paragraph (2)(b)—
(a)before paragraph (i) insert—
“(zi)benefit A is attributable to the person’s pensionable service,”;
(b)in paragraph (i), after “one or more other benefits” insert “that are attributable to his pensionable service”.
(5) In sub-paragraph (2), after paragraph (b) insert
“, and
(c)this paragraph applies if—
(i)benefit A is attributable to a pension credit from a transferor,
(ii)at the same time as the person becomes entitled to relevant compensation in respect of benefit A he also becomes entitled to relevant compensation in respect of one or more other benefits that are—
(iia)under the scheme or a connected occupational pension scheme, and
(iib)attributable to a pension credit from the same transferor,(“benefit or benefits B”), and
(iii)the aggregate of the annual values of benefit A and benefit or benefits B exceeds the compensation cap.”.
(6) In sub-paragraph (5), after “sub-paragraph (2)(b)” insert “or (c)”.
(7) The amendments made by this section are to be treated as always having had effect.
(8) Regulations under paragraph 26(9) of Schedule 6 to the 2005 Order (modifications for cases where compensation becomes payable on different occasions) made in consequence of this section may be made with retrospective effect.