PART 3

PENSION COMPENSATION
CHAPTER 1

PENSION COMPENSATION ON DIVORCE ETC.

Discharge of liability
94
1
This section applies where the Board is subject to a liability in respect of a pension compensation credit.
2
The Board must discharge the liability by sending a notice to the transferee.
3
On the sending of the notice the transferee becomes entitled, with effect from (and including) the transfer day, to compensation calculated in accordance with Schedule 4.
4
For the purposes of that calculation, the initial annual rate of compensation is an amount determined by the Board.
5
The Board must determine that amount in such a way as to secure that the cash equivalent value of the compensation to which the transferee becomes entitled under subsection (3) equals the amount of the credit.
6
The Department may by regulations make provision about the calculation of cash equivalents for the purposes of subsection (5).
7
The notice sent under this section must—
a
state that the transferee is entitled to periodic pension compensation calculated under Schedule 4, and
b
specify the amount determined under subsection (4).
8
Where the transferee dies before liability in respect of the credit has been discharged—
a
subsections (2) to (7) do not have effect in relation to the discharge of liability in respect of the credit, and
b
liability in respect of the credit must be discharged in accordance with regulations made by the Department.
S. 94 wholly in operation; s. 94 in operation for certain purposes at Royal Assent see s. 118(2); s. 94 in operation at 6.4.2011 in so far as not already in operation by S.R. 2011/108, art. 2(2), Sch.