Family Law (Scotland) Act 1985

[F1 12B Order for payment of capital sum: pension compensation S

(1) This section applies where the court makes an order under section 8(2) for payment of a capital sum (a “capital sum order”) by a party to a marriage or a partner in a civil partnership (“the liable person”) in circumstances where the matrimonial or (as the case may be) partnership property within the meaning of section 10 includes any rights to PPF compensation.

(2) On making the capital sum order, the court may make an additional order requiring the Board of the Pension Protection Fund, if at any time any payment in respect of PPF compensation becomes due to the liable person, to pay the whole or part of that payment to the other party or (as the case may be) other partner (“the other person”).

(3) Any such payment by the Board of the Pension Protection Fund—

(a) shall discharge so much of its liability to the liable person as corresponds to the amount of the payment, and

(b) shall be treated for all purposes as a payment made by the liable person in or towards the discharge of the person's liability under the capital sum order.

(4) Where the liability of the liable person under the capital sum order has been discharged in whole or in part, other than by a payment by the Board of the Pension Protection Fund, the court may, on an application by any person having an interest, recall the order or vary the amount specified in such an order as appears to the court appropriate in the circumstances.

(5) The court may not make an additional order under subsection (2) in relation to rights to PPF compensation that—

(a) derive from rights under a pension scheme which is subject to an order made under section 12A(2) or (3) in relation to the marriage or (as the case may be) civil partnership or a previous one between the same persons,

(b) derive from rights under a pension scheme which were at any time the subject of a pension sharing order in relation to the marriage or (as the case may be) civil partnership or a previous one between the same persons,

(c) are or have been the subject of a pension compensation sharing order in relation to the marriage or (as the case may be) civil partnership or a previous one between the same persons, or

(d) are the subject of an order made under subsection (2) in relation to the marriage or (as the case may be) civil partnership or a previous one between the same persons.]

Textual Amendments

F1 S. 12B inserted (6.4.2011) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 7 para. 6; S.I. 2011/664, art. 2(3), Sch. Pt. 2