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SCHEDULES

F1 SCHEDULE 6N.I.PENSION COMPENSATION PROVISIONS

F1mod. by SR 2005/171

Modifications etc. (not altering text)

Deferred members who have not attained normal pension age at assessment dateN.I.

15.—(1) Compensation is payable in accordance with this paragraph where, under the admissible rules of the scheme, a person who is a deferred member immediately before the assessment date has not attained normal pension age, in respect of his rights to a pension under the scheme, before that date.N.I.

(2) If that person ( “the deferred member”) survives to attain normal pension age in respect of that pension ( “the pension”), he is entitled to periodic compensation in respect of the pension commencing at that age and continuing for life.

(3) The annual rate of the periodic compensation is 90% of the aggregate of—

(a)the protected pension rate, F2...

[F3(aa)if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph, and]

(b)any increases under paragraph 28 (annual increases in periodic compensation).

(4) In sub-paragraph (3) “the protected pension rate” means the aggregate of—

(a)the accrued amount,

(b)the revaluation amount for the first revaluation period (see paragraph 16), and

(c)the revaluation amount for the second revaluation period (see paragraph 17).

F4F5(5) In sub-paragraph (4) “the accrued amount” means an amount equal to the initial annual rate of the pension to which the deferred member would have been entitled in accordance with the admissible rules had he attained normal pension age when the pensionable service relating to the pension ended.

F5F6(6) This paragraph is subject to—

[F7(za)paragraph 22A (calculation of compensation on and after 1st January 2024),]

(a)paragraph 24 (commutation),

[F8(aa)paragraph 25E (terminal illness lump sum),]

(b)F9... and

(c)paragraph 30 (power of Department to change percentage rates by order).

F2Word in Sch. 6 para. 15(3)(a) omitted (27.3.2013) by virtue of Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 23(7)(a); S.R. 2013/83, art. 2(b)(ii)

F4mod. by SR 2005/130

F5mod. by SR 2005/149

F6mod. by SR 2005/171

16.—(1) This paragraph applies for the purposes of paragraph 15(4)(b).N.I.

(2) The first revaluation period is the period which—

(a)begins with the day after the day on which the deferred member's pensionable service in respect of the pension ended, and

(b)ends with the day before the assessment date.

(3) The revaluation amount for the first revaluation period is—

(a)where that period is less than one month, nil, and

(b)in any other case, the amount determined in the prescribed manner.

(4) In this paragraph “the deferred member” and “the pension” are to be construed in accordance with paragraph 15.

17.—(1) This paragraph applies for the purposes of paragraph 15(4)(c).N.I.

(2) The second revaluation period is the period which—

(a)begins with the assessment date, and

(b)ends with the day before the day on which the deferred member attains normal pension age in respect of the pension.

(3) The revaluation amount for the second revaluation period is—

(a)where that period is less than one month, nil, and

[F10(b)in any other case, the aggregate of—

(i)the higher revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling before the day on which section 80 of the Pensions (No. 2) Act (Northern Ireland) 2008 comes into operation (“the Pensions Act commencement day”), and

(ii)the lower revaluation percentage of so much of the relevant amount as is attributable to the deferred member's pensionable service falling on or after that day.]

[F11(3A) For the purposes of sub-paragraph (3)(b)—

(a)any service within paragraph 36(4)(b) (notional pensionable service) is to be treated as falling on or after the Pensions Act commencement day if, or to the extent that, it is so treated for the purposes of the scheme;

(b)regulations may make provision in relation to cases where it is unclear whether or not any particular pensionable service (either actual or notional) falls, or is to be treated as falling, on or after that day.]

[F12(4) In sub-paragraph (3)—

“the higher revaluation percentage” means the lesser of—

(a)

the percentage increase referred to in paragraph (a) of the definition of “the higher revaluation percentage” in paragraph 17(4) of Schedule 7 to the Pensions Act 2004 (“the inflation percentage”), and

(b)

the higher maximum revaluation rate;

“the lower revaluation percentage” means the lesser of—

(a)

the inflation percentage, and

(b)

the lower maximum revaluation rate;

“the relevant amount” means the aggregate of—

(a)

the accrued amount, and

(b)

the revaluation amount for the first revaluation period (see paragraph 16).

(5) For the purposes of sub-paragraph (3)—

“the higher maximum revaluation rate”, in relation to the second revaluation period, is—

(a)

if that period is a period of 12 months, 5%, and

(b)

in any other case, the percentage referred to in paragraph (b) of the definition of “the higher maximum revaluation rate” in paragraph 17(5) of Schedule 7 to the Pensions Act 2004;

“the lower maximum revaluation rate”, in relation to the second revaluation period, is—

(a)

if that period is a period of 12 months, 2.5%, and

(b)

in any other case, the percentage referred to in paragraph (b) of the definition of “the lower maximum revaluation rate” in paragraph 17(5) of Schedule 7 to the Pensions Act 2004.

This is subject to paragraph 29 (power of Board to determine maximum revaluation rates etc.).]

(6) In this paragraph “the deferred member”, “the accrued amount” and “the pension” are to be construed in accordance with paragraph 15.

18.—(1) This paragraph applies where—N.I.

(a)the deferred member dies on or after the assessment date, and

(b)the pension was attributable to the deferred member's pensionable service.

(2) Subject to sub-paragraph (4), the widow or widower of the deferred member is entitled to periodic compensation commencing on the day following the deferred member's death and continuing for life.

(3) The annual rate of the periodic compensation at any time is—

(a)where the deferred member died after attaining normal pension age, half of the annual rate of the periodic compensation (including [F13any actuarial increase under paragraph 25A and] any increases under paragraph 28) to which the deferred member would at that time have been entitled under paragraph 15 in respect of the pension had the member not died,

(b)where the deferred member died before attaining normal pension age, half of the annual rate of the periodic compensation (including any increases under paragraph 28) to which the deferred member would have been entitled at that time under paragraph 15 if—

(i)normal pension age had been the deferred member's actual age immediately before the date of the deferred member's death, and

(ii)the deferred member had not died.

[F14(assuming commencement of the periodic compensation was not postponed by virtue of paragraph 25A).]

[F15(3ZA) For the purposes of sub-paragraph (3)(a), if on the day the deferred member (“D”) died commencement of D's periodic compensation under paragraph 15 was postponed by virtue of paragraph 25A, assume that the periodic compensation commenced immediately before the date of D's death.]

[F16(3A) For the purposes of this paragraph, a person's entitlement under paragraph 15 is to be determined disregarding paragraph 25E(1)(b) (successful applicant for terminal illness lump sum loses entitlement to periodic compensation).]

(4) The deferred member's widow or widower is not entitled to periodic compensation under this paragraph in such circumstances as may be prescribed.

(5) In this paragraph “the deferred member” and “the pension” are to be construed in accordance with paragraph 15.

19 .F17—F18(1) Compensation is payable in accordance with this paragraph where, under the admissible rules of the scheme, a deferred member has not attained normal pension age in respect of his rights to a lump sum under the scheme ( “the scheme lump sum”) before the assessment date.N.I.

(2) If the deferred member survives to attain normal pension age in respect of the scheme lump sum, he is entitled to compensation under this paragraph on attaining that age.

(3) The compensation is a lump sum equal to 90% of [F19the aggregate of—

(a)the protected amount, and

(b)if the payment of compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph.]

(4) In sub-paragraph (3) “the protected amount” means the aggregate of—

(a)the accrued amount,

(b)the revaluation amount for the first revaluation period, and

(c)the revaluation amount for the second revaluation period.

(5) In sub-paragraph (4) “the accrued amount” means an amount equal to the amount of the scheme lump sum to which the deferred member would have been entitled in accordance with the admissible rules had normal pension age been the actual age attained by the deferred member when the pensionable service relating to the lump sum ended.

F18F20(6) Paragraphs 16 and 17 apply in relation to this paragraph as if in those paragraphs—

(a)references to the pension were to the scheme lump sum, and

(b)“the deferred member” and “the accrued amount” had the same meaning as in this paragraph.

(7) This paragraph does not apply in relation to a lump sum to which a person is entitled by reason of commuting any part of a pension under the scheme.

(8) This paragraph is subject to—

[F21(zza)paragraph 22A (calculation of compensation on and after 1st January 2024),]

[F22(za)paragraph 25E (terminal illness lump sum),]

(a)F23... and

(b)paragraph 30 (power of Department to change percentage rates by order).

F17mod. by SR 2005/130

F18mod. by SR 2005/149

F20mod. by SR 2005/171