F1mod. by SR 2005/171
Modifications etc. (not altering text)
C1Sch. 6 modified (1.8.2006) by Pension Protection Fund (Pension Sharing) Regulations (Northern Ireland) 2006 (S.R. 2006/282), reg. 3(2)
C2Sch. 6 modified by S.R. 2005/149, reg. 13A (as inserted (1.4.2009) by Pension Protection Fund (Miscellaneous Amendments) Regulations (Northern Ireland) 2009 (S.R. 2009/78), reg. 4)
C3Sch. 6 modified by S.R. 2005/149, reg. 024(02) (as added (6.4.2010) by The Pension Protection Fund (Miscellaneous Amendments) Regulations (Northern Ireland) 2010 (S.R. 2010/80), regs. 1(b), 4(4))
C4Sch. 6 modified by S.R. 2005/149, reg. 23(2) (as substituted (24.7.2014) by The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 59(4)(c))
C5Sch. 6 modified by S.R. 2005/149 reg. 27(2) (as added (24.2.2018) by The Pension Protection Fund (Compensation) (Amendment) Regulations (Northern Ireland) 2018 (S.R. 2018/26), regs. 1, 2(6))
C6Sch. 6 modified by S.R. 2005/149 reg. 28(1) (as added (2.10.2018) by The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations (Northern Ireland) 2018 (S.R. 2018/165), regs. 1(2), 2(3))
5.—(1) Compensation is payable in accordance with this paragraph where immediately before the assessment date—N.I.
(a)a person is entitled to present payment of a pension under the admissible rules of the scheme,
(b)payment of that pension is postponed, and
(c)he has attained normal pension age in relation to the pension.
(2) That person ( “the postponed pensioner”) is entitled to periodic compensation in respect of that pension ( “the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (7) applies, until such time as entitlement to the pension would have ceased under the admissible rules.
(3) The annual rate of the periodic compensation is 100% of the aggregate of—
(a)the protected pension rate, F2...
[F3(aa)if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph, and]
(b)any increases under paragraph 28 (annual increases in periodic compensation).
(4) In sub-paragraph (3) “the protected pension rate” means what would have been the annual rate of the pension, under the admissible rules, if the postponement of payment had ceased immediately before the assessment date.
F4F5(5 )F4 In determining for the purposes of sub-paragraph (4) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph [F635(3A)] applies [F7to the scheme].
(6) Where the pension is attributable (directly or indirectly) to a pension credit, the reference in sub-paragraph (1)(c) to “normal pension age” is to be read as a reference to “normal benefit age”.
(7) This sub-paragraph applies where the pension was not attributable to—
(a)the postponed pensioner's pensionable service, or
(b)(directly or indirectly) to a pension credit to which the postponed pensioner became entitled under Article 26(1)(b) of the 1999 Order.
(8) This paragraph is subject to—
[F8(za)paragraph 22A (calculation of compensation on and after 1st January 2024),]
(a)paragraph 24 (commutation), and
(b)paragraph 30 (power of Department to change percentage rates by order).
F2Word in Sch. 6 para. 5(3)(a) omitted (27.3.2013) by virtue of Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 23(1)(a); S.R. 2013/83, art. 2(b)(ii)
F3Sch. 6 para. 5(3)(aa) inserted (27.3.2013) by Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 23(1)(b); S.R. 2013/83, art. 2(b)(ii)
F4mod. by SR 2005/149
F5mod. by SR 2005/171
F6Word in Sch. 6 para. 5(5) substituted (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 37(3); S.R. 2012/233, art. 2(2)(k)(v)
F7Words in Sch. 6 para. 5(5) added (1.4.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 100, 118(1), Sch. 6 para. 3; S.R. 2009/147, art. 2(a)(i)(b)