Compensation in respect of scheme right to transfer payment or contribution refund
20(1)Compensation is payable in accordance with this paragraph where—
(a)a person’s pensionable service terminates on the commencement of the assessment period,
(b)as a result, he has rights, under the admissible rules, to—
(i)a transfer payment calculated by reference to the value of benefits which have accrued to him under the scheme (“the protected transfer payment”), or
(ii)a cash payment calculated by reference to the amount of contributions made by him or on his behalf to the scheme (“the protected contribution repayment”),
(c)Chapter 5 of Part 4 of the Pension Schemes Act 1993 (c. 48) (early leavers: cash transfer sums and contribution refunds) does not apply to him, and
(d)he does not have relevant accrued rights to benefit (within the meaning of section 101AA(4) of that Act).
(2)That person is entitled to compensation in the form of a lump sum in respect of the protected transfer payment or protected contribution repayment.
(3)The amount of the compensation is 90% of the amount of the protected transfer payment or protected contribution repayment (whichever is the greater).
(4)For the purposes of sub-paragraph (3), the amount of the protected transfer payment or protected contribution repayment is to be calculated in accordance with the admissible rules, which are to be applied for this purpose subject to any prescribed modifications.
(5)The compensation is payable immediately after the transfer notice given under section 160 is received by the trustees or managers of the scheme.
(6)This paragraph is subject to paragraph 30 (power of Secretary of State to change percentage rates by order).
(7)Regulations may modify any provision of paragraph 8, 10, 11 or 14 (compensation for persons who were active members immediately before assessment date) as it applies in the case of a person who is entitled to compensation under this paragraph.
(8)Regulations may modify any provision of sub-paragraphs (1) to (6) as it applies in the case of a person who is entitled to compensation under paragraph 8, 10, 11 or 14.