Part 2

The Board of the Pension Protection Fund
Chapter 3

Pension protection

Ill health pensions

Reviewable ill health pensions
140
1
This section applies where there is an assessment period in relation to an eligible scheme.
2
The Board may review a reviewable ill health pension in respect of a member if—
a
disregarding section 141, the member would be entitled to compensation under paragraph 3 of Schedule 7 in respect of the pension if the Board assumed responsibility for the scheme,
b
the member did not attain normal pension age in respect of the pension before the assessment date, and
c
the pension is attributable to the member’s pensionable service.
3
An ill health pension in respect of a member is reviewable for the purposes of subsection (2) if the member is entitled to the pension by reason of an award under the scheme rules (“the award”) which was made—
a
in the period of three years ending immediately before the assessment date, or
b
before the end of the prescribed period beginning with the assessment date, in response to an application made before that date.
4
Where—
a
before the assessment date, an application was made under the scheme for the award of a pension before normal pension age by virtue of any provision of the scheme rules making special provision as to early payment of pension on grounds of ill health, and
b
the trustees or managers of the scheme failed to decide the application before the end of the period mentioned in subsection (3)(b),
section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure that the application was decided before the end of that period.
5
Where—
a
the award was made in response to an application which—
i
was made on or after the assessment date, or
ii
was made before that date but not decided by the trustees or managers of the scheme before the end of the period mentioned in subsection (3)(b), and
b
in the absence of this subsection, the award would take effect before the assessment date,
the award is, for the purposes of determining the compensation payable under this Chapter in a case where the Board assumes responsibility for the scheme, to be treated as taking effect after the date on which the decision to make the award was made.
6
Regulations must prescribe the procedure to be followed in relation to the review of a pension under this section and any subsequent decision under section 141.