The Pension Protection Fund (Compensation) Regulations 2005

Special provision in relation to pensions in payment on grounds of ill-health

11.—(1) Where immediately before the assessment date—

(a) a person is entitled to present payment of a pension under the scheme rules;

(b) that pension was awarded by the trustees or managers on grounds of ill health; and

(c) the effect of disregarding rules within paragraphs (a) and (b) of paragraph 35(2) of Schedule 7 to the Act is that the person is not entitled to compensation under paragraph 3(2) by reason of the pension or a part of the pension,

paragraphs (2) and (3) shall apply.

(2) Where in the opinion of the trustees or managers of the scheme a person to whom paragraph (1) applies would have been awarded an ill health pension under the admissible rules of the scheme prior to the assessment date, they must notify the Board in that respect.

(3) Where the Board receives a notice under paragraph (2) that person shall be treated, for the purposes of the pension compensation provisions, as entitled, immediately before the assessment date, to present payment of a pension under the admissible rules.