The Pension Protection Fund (Compensation) Regulations 2005

[F1 PART 2A E+W+S Postponement of compensation

Textual Amendments

F1 Pt. 2A inserted (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 3(4)

Postponing compensation E+W+S

2A.— (1) A person who becomes entitled to periodic compensation under paragraph 5, 8, 11 or 15 of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule, may elect to postpone the commencement of periodic compensation under that paragraph—

(a) in any of the circumstances prescribed in regulation 2B; and

(b) subject to all of the conditions prescribed in regulation 2C.

(2) A person who becomes entitled to lump sum compensation under paragraph 7, 10, 14 or 19 of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule, may elect to postpone the payment of lump sum compensation under that paragraph—

(a) in any of the circumstances prescribed in regulation 2B; and

(b) subject to all of the conditions prescribed in regulation 2C.

Circumstances in which periodic and lump sum compensation can be postponed E+W+S

2B.— (1) The circumstances referred to in regulation 2A(1)(a) and (2)(a) are as follows.

(2) The first circumstance is where the person has—

(a) not attained normal pension age; or

(b) not attained normal benefit age,

on the date when an assessment period begins in relation to the scheme.

(3) The second circumstance is where the person—

(a) has not received any pension (including any lump sum entitlement) under the scheme;

(b) is an active member; and

(c) has attained normal pension age,

on the date when an assessment period begins in relation to the scheme.

(4) The third circumstance is where the person—

(a) has had their pension payment postponed; and

(b) payment of the pension remains postponed

on the date of the transfer notice issued under section 160 of the Act to trustees and managers of the scheme.

Conditions subject to which periodic and lump sum compensation can be postponed E+W+S

2C.— (1) The conditions referred to in regulation 2A(1)(b) and (2)(b) are as follows.

(2) The first condition is that—

(a) where the person elects to postpone periodic compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any lump sum compensation to which they are entitled in respect of that scheme; or

(b) where the person elects to postpone lump sum compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any periodic compensation to which they are entitled in respect of that scheme.

[F2 (3) The second condition is that the person must not have received or be receiving—

(a) their pension (including any lump sum entitlement) under the scheme;

(b) any periodic compensation in respect of their rights under the scheme; or

(c) any lump sum compensation in respect of their rights under the scheme.]

(4) The third condition is that for each election to postpone periodic compensation or lump sum compensation, the person has sent written notice to the Board—

(a) in accordance with paragraph (5);

(b) that the person wishes to postpone the commencement of periodic compensation or payment of lump sum compensation; and

(c) before the commencement of that periodic compensation or payment of lump sum compensation.

(5) The notice referred to in paragraph (4) must include—

(a) the person’s name, address, date of birth and national insurance number;

(b) the name of the scheme for which the Board has assumed responsibility; and

(c) the date on which the person would like the commencement of periodic compensation or payment of lump sum compensation to cease to be postponed, which must be a date before the person attains the age of 75.

Textual Amendments

F2 Reg. 2C(3) substituted (1.10.2013) by The Pension Protection Fund and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/1754), regs. 1, 2

Date on which postponement ceases E+W+S

2D.— (1) Periodic compensation and lump sum compensation ceases to be postponed on the date elected under regulation 2C(5)(c) unless the person has further elected an earlier date or a later date (which must be a date before the person attains the age of 75).

(2) A person who wishes to make a further election under this regulation must send a written notice to the Board before the date notified (or most recently notified) under regulation 2C(5)(c).

(3) The notice referred to in paragraph (2) must include the information set out in regulation 2C(5).]